3. Why Sustainability Matters
• Consumers have a growing concern regarding their
products origins and lifecycle
• Current and future legislation requirements are driving
investment in sustainable operations
• Corporate image and public relations
• Lower Costs – less waste and optimized processes
4. 3 Tiers of Sustainability
• Tier 1 – Get the Basics Right
– Power down lights, PC’s etc.
– Recycle materials
– “Reduce Carbon Footprint” – telecommute, teleconference
• Tier 2 – Learn to Think Sustainably
– Companies begin to realize need to embed sustainability into the supply
chain
– Supplier Management, Product Design, Distribution Optimization
• Tier 3 – The Science of Sustainability
– Governing sustainable supply chain
– Auditing & benchmarks
– Companies recognize cost savings through green operations as truly
significant
*The Future Laboratory Ranking System
6. B Corp Certified
• 1,100 companies, 35 countries, 121 industries
• We must be the change we seek in the world
• All business ought to be conducted as if people and place
mattered
• Through their products, practices, and profits, businesses
should aspire to do no harm and benefit all
7. New Belgium Brewing
• Embrace sustainable operations daily
– Employees given “Fat Tire” Bicycle on 1st anniversary and encouraged to
ride to work
– 3 parking lots at the “mother ship” are separated by average MPG for the
vehicle being driven (ie. Prius up close, Suburban far away)
– Solar panels take advantage of 300+ days of sunshine in Ft. Collins
• 18% of their electricity comes from panels
– Measure water, waste, emissions
• 99.9% of waste escapes landfill
8. Why sustainability matters
• Managing and improving environmental, social and
economic performance throughout supply chains:
– Conserve resources
– Optimize processes
– Uncover product innovations
– Save costs
– Increase productivity
– Promote corporate values.
In short, the business case for supply chain sustainability is
growing
10. GENCO’s Commitment
“To make sustainability – in the environment, the
community, and the workplace – an economically
sound, integral element of everything we do.”
9
11. GENCO’s Sustainability Journey
• False start – 10 yard penalty
• Do it right or don’t do it
• Define the problem
• Total buy-in
• We already had a Sustainability program
• Build upon success
10
12. Workplace
Safety
Health & Wellness
Training & Development
GENCO Sustainability
Community
Volunteering
Charitable Contributions
Supplier Diversity
11
Environment
Reduce, Reuse, Recycle
Energy Reduction
Transportation Efficiency
17. Three truths about supply chain
brand responsibility
1. There is no such thing as a secret
2. If you don’t tell your story, someone else will
3. Doing the right thing is never wrong
“Wrong” is viewed through the eyes of the paying customer.
18. Reduce Risk and Create Stability
Customer is informed about supply chain behaviors:
• Availability of information (Look what I found!)
• Media elevation of global manufacturing issues (Headline News!)
• Public ridicule and brand bashing (Did you hear?)
Corporate motivation for addressing its supply chain:
• Fear of falling revenue in response to violating customer
expectations (Mitigate financial risk!)
Sustainability means reducing risks and creating stability
throughout the supply chain.
19. Examples of headlines to avoid
How the iPhone Helps
Perpetuate Modern-Day
Slavery
Samsung Suspends Ties
with Supplier Accused of
Child Labor
Bolivia Passes Law to Allow
10-Year-Olds To Work
Shrimp Supply Tainted with
Modern Slavery: Global
Business Transparency in
Needed
Toxic plastic toys may
pose health hazard to
young children
Five NY Firms charged
with Importing Toxic
Toys from China
LEGO_Everything_is_
not_Awesome
20. Addressing supply chain
sustainability within Health Care
• Material Content
– 13 Questions for every product on GPO agreements
• Conflict Minerals Reporting to the SEC
• Adherence to Principles of The Global Compact
Regarding Human Rights and the Environment:
– Documented Signed Agreements with all vendors
– Audit for Compliance to Principles
– Externally Reported Measureable Results
21. Supply chain has grown through a
shift in customer expectations
• Disposal of the waste and post-use content of
products is a growing demand of customers.
• Companies or brands are blamed for the waste
associated with its products.
• Companies or brands are expected to solve the
problem for customers.
WHAT’S NEW? The supply chain added a link!
23. Responsible & Resilient Supply
Chains
Why is it important?
• Increasingly global supply chains
• Increasing risk exposure
Lower business risk Drive innovation Enhance corporate /
brand reputation
Generate cost savings
• Reputational risk
• Regulatory risk
• Security of supply
• Quality of supply
• Litigation risk
Focus on total life-cycle
costs when sourcing
goods and services
rather than just price.
• Reputational benefit
of responsible supply
Development of new
products, services and
packaging that are more
sustainable and socially
responsible.
• Increasing brand exposure
• Customers, Governments, NGO’s and
Shareholders pay attention
What is our target?
Business Resiliency is initial priority for any supply chain sustainability program
24. K-C Supply Chain Sustainability
programs
Corporate Social Compliance
Social compliance standards declaration
Integration of standards with contracts, T&C’s
Expanded auditing program, including internal manufacturing
Support for customer-driven auditing program
Supply Chain mapping – traceability & transparency
Materials of concern / Chemicals of concern
Sustainable alternate materials
Long-term fiber consumption strategy
c
c
Material Sustainability
Supplier Engagement
Supplier surveying & benchmarking
Impact assessment & supplier goal setting
Strategic partnerships in sustainability
Leverage suppliers as force multiplier for sustainability programs
25. Human Rights remains a critical
risk
debt bondage industrial pollution
unsafe working conditions … excessive hours
…Wing Star Shoes
…Rana Plaza
…Foxconn
Social Compliance program approach
Establishment & acceptance of principles Identify supplier risk profile
• Set expectations for suppliers for human rights,
labor principles, environmental stewardship and
anti-corruption. Include them in T&C’s, contracts.
• Confirm supplier acceptance of principles.
• Focus on regions & industries where violations are
most likely to occur.
Audit against principles & standards Promote improvement to build capability
• Benchmark audit scope with peers / organizations
(Sedex, Verité, AIM-Progress)
• Audit & re-audit on established frequency
• Utilize third party expertise
• Engage in improvement with suppliers to address
audit findings
• Exit only when suppliers deny participation
Building supplier capability is our collective social mission and impacts lives
26. Supply chain risk can be far removed
from direct operations
How much do we know about our supplier’s suppliers? And their suppliers?
How exposed are we to risks from …
…materials contributing to deforestation?
…minerals sourced from conflict zones?
…materials containing chemicals of concern?
…supplier facilities impacted by climate change?
…suppliers violating environmental regulations?
…ENGO direct action in our supply chain?
27. Supply chain maps enable greater risk
analysis depth
Supply Chain Mapping
Depth of understanding of supply chain partners beyond
direct suppliers is necessary to understanding where
risk hot-spots exist.
Monitoring of at-risk supply chains can prevent costly
process outages.
Shorter response to specific concern areas (conflict
minerals, chemicals of concern, customer inquiries,
etc.)
Extrapolate environmental risks
Critical threats can be explored once an understanding
exists of where supply chain nodes run.
Do water-intensive processes exist in countries that
are water stressed?
Do suppliers located in regions with flooding issues
have business continuity plans to account for floods?
Do suppliers source packaging from companies that
contribute to deforestation in threatened areas?
28. Supplier engagement
Define & Structure Measure & Set Targets Incentivize and Innovate
• Top-to-top engagement
• Mutually beneficial project
platforms on sustainable
innovation
• Supports objectives for sales,
marketing or product-supply
sustainability initiatives.
• Participate in sustainability
surveys
• Integrated sustainability
objectives in procurement SRM
• Works with procurement on
supplier-driven innovation with
sustainable benefits.
Baseline Sustainability Expectations
• Accountability to K-C supplier
expectations for sustainability.
• Participation in Corporate Social
Compliance
• Response & participation in
concern area actions (e.g.
Conflict Minerals, etc.)
Supplier-specific goals / objectives
Supplier / Partner engagement
Sustainability impacts multiply when we reach beyond our own organization
30. Thank you!
Jim Butler
VP Sales & Marketing
Blue Horseshoe
Ryan Kelly
SVP Strategy
GENCO
Lance Miller
Manager of Operations
Wegmans
Jane Hart
Global Sustainability Leader
Kimberly-Clark
Chris Weber
Sr. Consultant for Supply
Chain Sustainability
Kimberly-Clark