Singapore Supply Chain Summit

The Responsible Business Summit Asia – Empowering suppliers and engaging customers

-SINGAPORE 17 & 18 MAY 16

-Hosted by Ethical CORPORATION

Many companies have been working to ensure environmental compliance, safe work practices, ensuring workers are fairly paid and fairly treated, in their supply chain for well over a decade.  I was fortunate enough to attend the summit with the purpose of gaining insight and inspiration from a number of the leaders in this field.

Some of the bigger well-known brands (and product manufacturers) that presented at the summit included; Adidas Group, AkzoNobel, BASF, Monsanto, Levi Strauss & Co, GSK, Interface and Hayworth. 

There were two key themes running through the event, Stakeholder Engagement and Collaboration AND Engaging Customers.

STAKEHOLDER ENGAGEMENT AND COLLABORATION

Here are some of the key learnings, with a focus on working with your Supply Chain.

GOOD COMMUNICAITON with your suppliers is a MUST.  This was really emphasised throughout the whole event, and has been my experience of working with my clients suppliers, you need to bring them on board from the outset.

BE VERY CLEAR on what is expected of your suppliers. What is the purpose, why are we doing this, and how do we do it. Give them guidance, a pathway to get there.  A Suppliers Code of Conduct is a good start.

PARTNER with your suppliers - Collaboration, collaboration, collaboration. How can we make it better together. Understand what is important to your suppliers and how you can work together to achieve this. Make sure they are comfortable with what has been requested.

GIVE your suppliers incentives – help them understand that companies that take care of their staff have better staff retention, or consider preferred supplier agreements, and or early payments.

BE Persistent – there will be setbacks, persevere, it’s a marathon, not a sprint.

ENGAGING CUSTOMERS

HOW CAN YOU HELP your clients be more sustainable – sell the environmental benefits of the products and why it’s important to the end user, e.g. LOW or NO VOC  PAINTS(Volatile Organic Compounds)  creates a healthier Indoor environment. 

TALK about your purpose - What is your sustainability vision, your sustainability story, how do you engage staff to help deliver sustainability outcomes. What socially responsible projects have you been working on.

FRAME it in the positive – for example “ Improving people lives” and then talk about how your company is doing that. Engage your customers, make it real, authentic and meaningful

One last interesting insight that was presented at the summit - TEST YOUR PERCEPTIONS of where potential human and or labour rights abuses may be occurring in your supply chain, it may NOT always  be the obvious (i.e. in developing nations).  As we have seen reported in Australia with various ABC Four Corners reports – “Slaving away: The dirty secrets behind Australia's fresh food”  and “7-Eleven: The Price of Convenience, with underpayment of it’s workforce”.

If you would like more information about how to manage your supply chain or how to communicate your Sustainability Story, please get in touch

SUSTAINABILITY 101

So what is Sustainability?

Sustainability can mean different things to different people and or organisations. For me, it’s all about protecting the ENVIRONMENT and PEOPLE.

Years ago I came across a great VIDEO that explains, for me the true meaning of sustainability, especially in the context of product manufacturing. It’s called the STORY of STUFF.

The Story of Stuff outlines the REAL COST of producing products, both in terms of the human and environment cost and looks at the underside of consumption.

This video may be challenging or confronting for companies making products – but I beg you, stay with it. If you manufacture products and or specify products I would strongly urge you to take these 20 minutes and watch the Story of stuff.  If you stay until the conclusion of the video, you will see that there is certainly a great deal or optimism and great opportunities for product manufacturers. 

We all have a role to play in ensuring we have a more sustainable future, by producing more sustainable products and adopting ethical business practices. And for Designers and specifiers to reward these companies that are taking the lead.

Watch Video Now

10 years on I still remain extremely motivated to create positive change and provide sustainable solutions to product manufactures. As Annie Leonard concludes in her presentation, “there are people working on saving forests, cleaner production, labour rights, fair trade and conscious consuming, by the people for the people. What we need is a new mindset based on sustainability and equity”.

The video finishes on this final note – “Some say its unrealistic, or idealistic, some say it can’t happen”. I say, lets work together to create a more sustainable environment.

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Definition of sustainability development (Brundtland Commission)

"Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts:

·       the concept of needs, in particular the essential needs of the world's poor, to which overriding priority should be given; and

·       the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.

Changes in Green Star and how this affects product manufacturers

There have been a number of changes with the Green Star Rating tools over recent years. THE Green Building Council of Australia (GBCA) has developed 4 new Green Star RATING TOOLS, COMMUNITIES, DESIGN & AS BUILT, INTERIORS and PERFORMANCE.

Currently there are a number of Green Star rating tools in use.  There are the ‘Legacy Green Star Rating Tools’ (i.e. old Green Star Rating tools) and the NEW Green Star Rating tools (COMMUNITIES, DESIGN & AS BUILT, INTERIORS and PERFORMANCE).

The Legacy rating tools include Office Design, Office As Built, Office, Office Interiors, Education, Healthcare, Industrial, Public Building and Retail Centre.

Registration for Green Star projects to use the Legacy tools closed in December 2015, though these projects have until DEC 2017 to complete their submission. So that means that product manufacturers may still get asked for information relating to the ‘old’ Legacy tools.

In the LEGACY tools product manufacturers had TWO OPTIONS for getting products specified in the GREEN STAR Materials CALCULATORS.     

Option 1 – Obtain 100% Product score by having an ‘Environmentally Innovative’ product (i.e. a product that is certified by a GBCA recognised product certification scheme - AFRDI GreenTick, GECA and or Global GreenTag).

OR

Option 2 – Achieve a percentage product score, based on how many criteria your product meets in the applicable calculator. Points are based on:

Resource Utilisation – Eco Preferred content and product durability

Management – EMS ISO14001, Waste minimisation, Energy, Emissions, Material Minimisation and Product Stewardship

Reusability – Design for Disassembly

Example of the Calculator completed using option 2.

In the (old) Legacy tools ALL levels of Product certification equal 100% in the Material Calculators, that means Level A, B and C in the Legacy tools are all equal.

So how do these new tools affect product manufacturers?

The Green Star Rating tools most relevant to product manufacturers are the  Design & As Built and the INTERIORS Green Star Rating tools, though there will be some opportunities for specification in the PERFROMANC Rating Tool.

In the new Green Star rating tools- Level A will give a ‘Sustainability factor’ of 1, Level B = .75 and Level C.50, in the SUSTAINABILITY PRODUCTS CALCULATOR.  This means that in the NEW Green Star Rating tools, Level A will merit its TRUE value.

The only other options for achieving any credits or ‘value’ in the NEW Sustainability Products calculator is with a Stewardship Program (Product take back) which gives a sustainability factor of .50, an Environmental Product Declaration OR by having a % of recycled content in your product.

If you need further assistance understanding and implementing these changes. Please contact me.