Top 5 business benefits of embracing sustainability

Owners of small businesses may believe that sustainability strategies are the domain of larger organisations, their business is too small to have an impact, or that adopting sustainability practices will be too expensive.  And many still believe that there must be a compromise between business profitability and ethical business practices. But from my experience, this is not true.  No matter the size of the organisation, a sustainability strategy can benefit a business in numerous ways.

Businesses have different reasons for focusing on sustainability; some of our clients need to have ISO 14001 EMS certification as a prerequisite to do business, others see a business case for return on investment, and others adopt sustainable business practices because of ideological beliefs and values. This diversity of motivation shows some of the range of ways having an effective sustainability strategy can deliver value to your business.

1.    REDUCED OPERATING COSTS

I know this is stating the obvious but costs for energy and waste keep increasing. The cost of disposing waste to landfill has at least doubled since I started consulting, so it just makes good business sense to recycle or reuse waste wherever possible, or avoid it altogether. When it comes to waste, think outside the square; how can your ‘waste’ be someone else’s ‘treasure’, and what other recycling streams are available?

Even small changes can reduce your expenses, especially when it comes to energy efficiencies. Start with the low hanging fruit; ensure appliances are switched off when not in use (e.g. office machinery, lights in staff rooms, air-conditioning, factory machinery), have someone check the premises at the end of the day to ensure EVERYTHING is switched off, and ensure your machinery is properly maintained and fully efficient.

Consider your procurement processes; when replacing factory machinery or compressors, do your due diligence. Ask the manufacturers about the energy efficiency of each item AND ask them to verify their claims. Check what government assistance is available – both state and federal – for purchasing energy efficient machinery and lighting.

2.    BRAND LOYALTY AND AWARENESS

A successfully implemented sustainability strategy can positively impact a company’s reputation and brand image. It’s important to demonstrate that your company is taking responsibility for its actions and embracing change for the greater good.  Your clients want to partner with companies that have ethical business practices.  

Many of the larger corporates, banks, telcos, insurance companies and builders are initiating Suppliers and Vendors Codes of Conduct to ensure companies like yours are addressing human and labour rights and extending your environmental management systems through your supply chain. They don’t want the RISK of partnering with companies where there is the possibility of human rights abuses. This will damage their brand so it’s important for your organization to address these issues, not only internally, but with your own suppliers.

It’s crucial for your clients to have confidence in your company and products so, if you are taking this type of action, then ensure you make this clear in your communication. Make sure your certifications and sustainability initiatives are clearly stated on your company website. Ensure you can substantiate your claims and be authentic with your communication.

3.    DON’T BE LEFT BEHIND

Although not every client cares about sustainability, more consumers, end users and construction companies want to partner with ethical businesses. I’ve seen the growth in demand for this increase, especially in the last 2 years.

Sustainability, by its very nature, is in constant flux and is based on the principle of ‘continual improvement’. An example of this is that Type 1 Ecolabelling certification requirements are regularly reviewed and updated to match industry trends and market expectations. When I first started consulting in 2008, it was all about the environment. Now clients (end users) and construction companies have compliance requirements around social responsibility, including human and labour rights and how this extends through your supply chain.

If you don’t have a strategy, then you are constantly reacting to market expectations and pressures. Not every situation can be foreseen, but make sure you are not on the back foot. Don’t miss out on having your product specified for a Green Star Project because you don’t have your product certified.  Understand that clients want to partner with sustainable and ethical businesses and consider this as part of your strategy and course for action.  Think about what policies, procedures and training you need to demonstrate social responsibility.

That’s where developing a strategy and a roadmap can help you keep up and/or stay ahead of the needs and expectations of your clients, and also ensure that you meet product Type 1 Ecolabelling certification requirements.

4.    ATTRACT NEW CUSTOMERS AND INCREASE SALES

Product manufacturers sell products in Australia and also globally, so having certifications such as Type 1 Ecolabelling or ISO 14001 Environmental Management System (EMS) gives your organisation credibility. Clients seeking to use you will understand that you have a commitment to addressing environmental issues.

If you want your products to be certified for Green Star Projects, then it’s a must have to have your product certified by one of the following certification schemes, which are recognised by the Green Building Council of Australia (GBCA):

• Carpet Institute of Australia Limited - Environmental Certification Scheme
•  Global GreenTag GreenRate
• Australasian Furnishing Research and Development Institute - Green Tick
• Good Environmental Choice Australia (GECA)
• The Institute for Market Transformation to Sustainability - Sustainable Materials Rating Technology

Be mindful, that some of the largest projects in recent years have been Green Star Projects, like the Barangaroo precinct in Sydney.  If you’re interested in some of the great sustainability initiatives that have been initiated by Lendlease, then check out the link below – it’s quite impressive. Click here for more information.

5.    EMPLOYEE ENGAGEMENT

This might come as a surprise to some, especially in small businesses, but from my experience spending time with factory, admin and sales staff, I have seen a real shift in staff’s attitude towards sustainability, particularly in recent years.

There is a sense of pride from staff that their company is initiating sustainable practices and staff enjoy the group training sessions and activities, where they too can have a say, participate and contribute. They are the key players when it comes to improvements so it’s particularly important for them to be engaged. Poor staff moral can lead to passive sabotage in the form of reduced productivity, bad workmanship, quality issues and absenteeism, all of which can damage a company’s profitability.

Employee engagement is especially important when it comes to your sales team. Employees who are passionate about the company and its products are the best advocates. I have found when I’m inducting sales staff who are new to an organization, they are chuffed when they understand that their new employer has some great stories to tell about their sustainability initiatives. Good sales staff understand the importance of any type of differentiation from competitors, especially when it comes to partnering with the top tier construction companies.

KEY TAKEAWAYS

• Consider your clients and what their expectations are of your business in terms of sustainable outcomes
• Consider the company you want to create for ALLyour stakeholders, including staff
• Consider a way forward, where to invest your dollars and  in what certifications
• Be honest and authentic in your communication to your stakeholders
• Seek opportunities for reducing business and operating costs

With a sustainability strategy as the guide, a company can be ready for changing expectations, trends, drivers and regulations in their industry.

Green Building Materials Market to Reach $3.7 Billion by 2022

According to a new report published by Allied Market Research, titled, "Green Building Materials Market by Product Type and by Application - Global Opportunity Analysis and Industry Forecast, 2014-2022" the global green building materials market is expected to be $171,475 million in 2015, growing at a CAGR of 11.9% from 2016 to 2022 to reach $377,029 million by 2022. The exterior products segment dominated the market in 2015 with one-third share, in terms of revenue.

What are the drivers behind this growth:

• emission reduction potential of green building materials
• high asset value of green buildings
• growth in public awareness regarding green materials
• increase in client and market demand
• reduced operating costs and
• enhanced worker productivity due to healthier indoor environment

What are the key findings of the study:

1. Asia-Pacific is expected to continue to lead the market during the forecast period followed by Europe
2. Solar products market revenue is projected to grow with a high CAGR of 13.5 per cent during the forecast period
3. Roofing is the fastest growing segment in green building exterior products, registering a CAGR of 12.2 per cent during the forecast period
4. Brazil accounts for three-fifths share in LAMEA green building materials market in 2015
5. India grows at a faster rate in Asia-Pacific green building materials market, registering a CAGR of 12.7 per cent from 2016 to 2022
6. France accounts for 11.1 per cent share in Europe green building materials market in 2015

What’s happening in the Asian pacific region

Asia-Pacific and Europe collectively contributed more than half of the share to the global green building materials market revenue in 2015.

In the same year, Asia-Pacific dominated the market, owing to the presence of healthier neighborhoods and pressure of environmental regulations pertaining harmful emissions.

Conclusion

It’s always good to get a global perspective and this article provides us with information that relates to different countries and continents.

Looking closer to home, in the story below we provide you with a snapshot of what is happening in the Australian Green Building industry. In the Green Star article we include a link to the Green Building Council of Australia (GBCA)’s website so you can see how many registered and certified projects there are in Australia.

ISO14001: 2015 TRANSITION GUIDANCE – 5 tips to get you started

Any new standard or updated standard comes with challenges and opportunities; the 2015 revised ISO14001 standard is no different. The revised standard will look and feel different and there are numerous changes throughout.  The 2015 ISO14001 standard offers opportunities for organisations that may have stagnated, in that it allows companies to think differently about their EMS, but, like everything, it needs to be carefully considered and planned.

GETTING STARTED

1.     Plan the transition and date of recertification

If you’re transitioning to the new 2015 ISO14001 standard, then the most obvious time to be audited against the new standard would be after your last surveillance audit. For example, if you are due for a surveillance audit in March 2017, then start planning and implementing to the new standard in April 2017. And go for recertification to the new standard in 2018. You have up until September 2018 to be certified to the new standard. After 15 September 2018, your ISO14001 certificate will no longer be valid.

There are a number of major changes to the new standard so these will need to be planned for.  Give yourself a minimum of 12 months for the implementation so it will be less stressful.

2.     Leadership

Prior to commencing the transition to the new standard, it’s imperative that top management is committed to incorporating environmental management as part of the company strategy.

In the old standard, there was one Environmental Management System (EMS) representative. In the new standard, this is no longer the case.  Top management is expected to be accountable for the success of the EMS and as such should lead, promote and direct others to ensure the EMS is properly implemented, communicated and is meeting the desired objectives. 

3.     Conduct a gap analysis

If you already have an EMS implemented to the ISO14001:2004 standard, then I would suggest you conduct a gap analysis. This provides a comparison against the old and new standard and helps you understand the changes – some of which are minor and some of which are major with completely new elements.

The new inclusions relate to:

• Context of the organisation, internal and external issues, needs and expectations of interested parties
• Leadership and commitment, demonstration of leadership and integration into company strategy
• Actions to address risks and opportunities related to your environmental aspects
• Life cycle perspective, from raw material through to final disposal or reuse of product

In addition to the NEW inclusions listed above, there have been a number of revised clauses so these too will need to be considered. For example:

• Environmental policy
• Planning for actions
• Communications plan
• Compliance obligations
• Performance evaluation
• Internal audit program
• Management review
• Continual improvement

4.     First step is to focus on the ‘context of the organisation’

This is a new clause of the ISO14001 standard

Understanding the organisation and its context should involve high-level analysis of how your business functions in relation to internal and external issues (see below) and what your stakeholders expect from your business in terms of sustainable outcomes.

The ‘context of the organisation’ will help determine the scope of your EMS. With the old standard, the scope, within reason, was determined by the organisation undergoing certification. This new element in the standard will change that.

It’s important to understand the context in which your organisation relates to ‘internal and external issues’. These are issues that can impact your organisation either positively or negatively and the way your organisation manages its environmental responsibilities and outcomes.

Examples of items to address under the clause ‘context of the organisation’

Environmental conditions are factors related to climate, air and water quality, land use, natural resource availability and biodiversity that can either affect the organisation’s purpose or are affected by its environmental aspects.

An example that would potentially affect product manufacturers or retailers would obviously be natural resource availability, (e.g. timbers, metals, plastics).

External issues include cultural, socio-political, legal, regulatory, financial, technological, economic, natural and competitive circumstances. These could be local, regional, national or international.

For example, if there was a downturn in the economy, this could impact how you manage your EMS and what resources you allocate to it. Exchange rates are another factor that could affect your business either positively or negatively depending on whether you import or export products, materials or components from overseas.

Internal issues include

Examples of internal issues could be the relocation of a factory or warehousing facility, staff members that have a significant role within the EMS resigning, or changes in the design and procurement processes.

Understanding the needs and expectations of interested parties

For product manufacturers, this would most likely relate to your clients’ expectations and industry requirements. Examples of requirements might include, green star rating tools and relevant green star credits, ecolabelling certification schemes,  environmental requirements in clients’ tenders and, in some cases, clients (construction companies) suppliers’ or vendors’ codes of conduct. Staff and community expectations also need to be considered.

Once you have determined the internal and external issues that could affect your EMS and you understand the needs and expectations of interested parties, you can determine the scope of the EMS. 

5.     PLAN the year ahead

When I’m planning the EMS transition for my clients, I put together a 12 month plan so, for each month, I allocate a required action, whose responsible and a completion date. That way I know when all the requirements need to be completed and can plan ahead for the coming months.  As with the old EMS, there is a systematic approach – PLAN-DO-CHECK-ACT. This one is similar. The below diagram is an extract from the ISO14001:2015 standard, a new example of a PLAN-DO-CHECK-ACT model.

New templates, registers, documents and procedures will need to be developed to meet the new standard requirements,

If we can help with any aspect of the implementation of the revised ISO14001: 2015 standard, please get in touch.

Making the transition to ISO14001: 2015 - What product manufacturers need to know

INTRODUCTION

ISO 14001 Environmental Management is the most widely used environmental management standard globally.  The standard is a tool to help businesses manage their environmental impacts. 

The new ISO14001: 2015 standard is an improvement on the 2004 version. The new standard has a holistic approach to managing environmental impacts; it makes companies more accountable through leadership and commitment and ensures the EMS is part of the company’s strategy and is integrated throughout the organisation.

HOW LONG IS THE TRANSITION PERIOD

There will be a 3 year transition period from 2015- 2018. If your company is already certified to ISO 14001:2004 you will have until the 15 September 2018 to be certified to the new standard. After September 2018, certification to the old standard will no longer be valid.

WHAT ARE THE KEY CHANGES

The new standard will look and feel different. There are some significant changes and minor updates to the old standard.  I have outlined a number of the new inclusions.

Context of the organisation – you will need to demonstrate a broader understanding of the context in which your company operates and how to incorporate this into your Environmental Management System (EMS).  The context also includes the needs and expectations of interested parties, i.e. your stakeholders (clients, suppliers, employees, communities, NGO’s etc). This in turn determines the scope of the EMS.

Top level leadership and commitment – it’s important to be able to demonstrate leadership and commitment with respect to the EMS, to ensure the company integrates environmental management into the strategic planning processes.

Environmental protection - you will be expected to commit proactively to initiatives that protect the environment.

Risks and opportunities – the focus is not only on risks but on opportunities associated with environmental aspects, compliance obligations and other issues and requirements.

Life cycle approach -this of course is very pertinent to product manufactures, and requires the organisation to consider each stage of a product or service from development to end-of-life. 

A greater focus on environmental performance - the concept of continual improvement now has an emphasis shift from improving management systems to improving environmental performance.

Strategic communications – a communication strategy for internal and external communications, including the need for consistent and reliable information, is required.

WHAT ARE THE POTENTIAL BENEFITS of the new standard

The old ISO14001: 2004 standard was focused on environmental ‘risks’ but I like the inclusion of ‘opportunities’ for the organisation. The new standard offers opportunities to organisations that may have stagnated and something that could have been potentially overlooked. It allows companies to think differently about their EMS.

CHALLENGES of the revised standard

For small to medium sized companies (SME’s), there maybe a couple of challenges. 

Firstly, around ‘leadership’ and integrating environmental management into the company’s strategy. Some SME’s don’t have business plans or a documented company strategy, so it may be difficult to demonstrate this, but certainly not impossible.

Secondly, you will need to allocate time and resources for the implementation of the new standard.  Allow yourself plenty of time to implement these changes, at a minimum I would suggest 12 months. Consider engaging external expertise to assist with this transition.

Does the certification give your company a competitive advantage?

Clients, specifiers, Government bodies, builders and construction companies have an expectation that product manufactures have environmental management practices embedded into their company culture and strategy. The ISO14001 certification gives your clients assurance that you are managing your environmental impacts and complying with environmental legislation. 

I often see the requirement for ISO14001 certification in tender requirements, government contracts and suppliers code of conducts.

This new standard will certainly challenge some SME’s but it’s worthwhile to have the ISO14001 certification.

“Check out next month’s BLOG - ISO14001: 2015 TRANSITION Guidance -5 tips to get you started
”

— Libby Staggs

How can we help?

Sustainable Business Matters can assist your company with advice, tools, templates, manuals and onsite expertise to ensure a smooth transition to the new ISO14001: 2015 standard. Contact us now.

I'm dreaming of a green Christmas...

I love Christmas, and everything that it brings, but I often think it’s a shame that Christmas is at the end of the year when everyone is burnt out, stressed and tired.  Though it is possible to enjoy the festive season and be kinder to each other, kinder to ourselves, and kinder to the planet. 

We can do this by minimising consumption and being more mindful of our purchases. This frees us up for what’s really important…..enjoying all of those wonderful Christmas celebrations with family and friends.

These are my top 5 tips to keep your festive season sustainable, fun and stress free.

 NO: 1 - GIVE to a CHARITY

Most of us have multiply Christmas parties, family, friends, your family, your partner’s family, etc. All this gift giving can get out of hand. Usually we just end up with more ‘stuff’ we don’t really need or want.  For our family Christmas celebration, we all donate to a charity, usually Médecins Sans Frontières (Doctors without borders).

 If you’re looking to support an organisation that is taking care of Australian families that are doing it tough, check out #Makegoodhappen

Good360 currently has over $5 million worth of new goods in their warehouse and need help distributing it. For a $25 donation you can help send the gift of a Goodie Bag full of clothing, toys, toiletries, and other quality goods to Australia’s most disadvantaged this Christmas. Choose from a range of Goodie Bags full of surprises suitable for babies, children, teenagers, men and women. Find out more here. 

NO: 2 - Be MINDFUL of CONSUMPTION

When purchasing, think less is more and consider more sustainable options:

• Choose one big gift or a gift voucher
• Gifts made from recycled materials or sustainable sources
• Use E-cards, or
• Christmas cards and wrapping papermade from FSC paper (Forest Stewardship Council)
• Restrain from buying cheap and nasty products from Two Dollar shops, they will likely end up in landfill
• Buy a gift that can be eaten. There are so many locally made gourmet vinegars, jams and chutneys. Our local school Christmas fete is where I buy the most delicious chutneys, relishes and vinegars.

NO: 3-Support FAIR TRADE

I’m blessed to have the Trading Circle in our local shopping village.  My first port of call when I’m purchasing Christmas cards, decorations or Christmas bon-bons.  You can also purchase online.

 I had to laugh when I jumped on the Oxfam website and saw the heading ‘because you can never have too many goats’. Funny, but true!

The giving of goats has been around for some time, and it’s not the only item that can be purchased to help people in developing nations, but as a way of a reminder - when you purchase a goat, you are helping communities world-wide.  When a goat is presented to a person living in Mozambique, they know that it can bread to create more goats, provide manure for growing food and be sold to pay for school fees or tools. Find out more at  The Trading Circle and Oxfam.

NO: 4 - Support OP SHOPS

It used to be that buying from Vinnies, Salvos and the Red Cross meant that you were likely to score a bargain, this may not always be the case, but I do love entering Op shops to see what kind of treasures are abound.  This is a great place for stocking fillers and also helps these organisations with fundraising.

NO: 5 - Support retailers that have ETHICAL SOURCING policies

Last but not least, support retailers where you know they have some form of due diligence, or Ethical Sourcing Polices to address human and labour rights of workers and environmental management practices within their supply chain. Companies like David Jones, Cue and K-MART.   

WESTFARMERS, the owner of Bunnings, Myer, K-Mart, Target and Officeworks have a commitment to Ethical Sourcing.

Their principles include:

PEOPLE – safety, diversity and people development

SOURCING – suppliers and ethical sourcing

COMMUNITY – community contributions and product safety

ENVIRONMENT - climate change resilience and water and waste use

GOVERNANCE – robust governance.

The below link gives you more information on Westfarmers ethical sourcing audit programs, supplier training, timber procurement, living wage, supply chain transparency, Australian suppliers and Westfarmers human rights and modern slavery statement.  It’s worth a read, especially the information on the ‘living wage’. Find out more here.

Wishing you all a very happy, healthy and 'green' Christmas. 

From Libby at Sustainable Business Matters xo

Our top 5 tips on how to communicate sustainability

Having spent many years working with product manufacturers, my experience has been that product manufacturers are good at making products, but may not always be good at communicating sustainability. I read environmental copy on company websites and brochures and it’s often unengaging, irrelevant and sometimes makes little to no sense.

Having any type of certification, ISO14001: EMS or Ecolabelling is a huge investment for most organisations, but more so, for small to medium size businesses.

So let’s get these credentials working for you. Here are our top 5 tips.

1. Make it relevant – what is important to your clients, do they have social and environmental requirements, or are they only interested in meeting Green Star requirements and want a Level A certified product. Consider what your clients are requesting– what are the most common asked questions, what forms part of your client’s tender requirements and then target these requests.

2. Make it easy – often it’s really challenging to find where the company’s environmental information is located on a company’s website.  If Designers and Architects are looking for your Ecolabelled certified products on your website make it obvious as to which products are certified and to what Level – Is it a Level A, B or C?

3. Make it real - and make it meaningful. So often when I’m perusing websites I see so much ‘over the top’ sustainability or environmental information which sounds really disingenuous and sometimes nonsensical.  Make sure you understand what you are writing.

4. Be honest - ensure you can substantiate your sustainability claims.  The Australian Competition and Consumer Commission (ACCC) sets out Australian consumer law on how to market your environmental claims. Failing to comply can result in serious penalties.  More information on the consumer law can be found on the ACCC’s website or by downloading our PRODUCT MANUFACTURERS’ GUIDE TO COMMUNICATING SUSTAINABILITY.

Most Ecolabelling product certification schemes require companies to follow ISO14021 – Environmental labels and declarations – Type ll, to ensure no false or misleading product claims.  

Avoid ‘greenwash’ and using terms like ‘environmentally friendly’ or ‘ecologically sustainable products’. ‘Environmentally preferable’ would be a better option.

5. Make sure it’s engaging – tell your story, your unique story.  Bring your clients along with you.  What have you been doing that is different from your competitors?  Why would they want to support your organisation?

For more tips and on how to communicate your company and products sustainability story and credentials download our free PRODUCT MANUFACTURERS’ GUIDE TO COMMUNICATING SUSTAINABILITY.

If you want to know more:

·       Call Libby on 0448 026 508 or email us

Who are the leaders in Sustainable Supply Chain Management?

Find out what Green Star, Ecolabelling Schemes, multinationals and construction companies are doing with their certification, innovation credits and procurement practices.

INTRODUCTION

Having a sustainable supply chain is almost a ‘must have’ these days for product manufacturers.  Large multinationals, the Green Building Council of Australia (GBCA) and Australian Ecolabelling standards are all playing a positive role in ensuring Australian product manufacturers are sourcing ethical products, product components and materials.

The companies and not-for-profits that are included in this blog are all contributing to bringing a positive change in the area of human and labour rights and also environmental management for product manufacturers.

The information supplied below is publically available, with links to the company’s website, or by information gained through my experience of working with the ecolabelling schemes and understanding Green Star requirements. 

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OFFICE SUPPLIERS

Officeworks – Responsible Sourcing

Officeworks source products from thousands of suppliers in Australia and globally and take their responsibilities to suppliers and the communities they operate in very seriously. They are committed to educating their suppliers about responsible sourcing policies and requirements.

As a company which supplies products made from timber they have adopted a zero tolerance approach to illegal timber in their supply chain and support certification of forestry to international recognised independent third party standards.

As Officeworks is part of the Wesfarmers group, they have a rather comprehensive approach to supply chain sustainability.

Officeworks is a member of Sedex, a not-for-profit organisation responsible for driving supply chain improvements and responsible business practices. Find out more about Officeworks sustainability practices. 

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INDUSTRY INITIAVES

Green Building Council of Australia (GBCA)

The GBCA has included Compliant Supply Chain (CSC) as 1 of the 7 Priority Areas of Concerns included in product certification requirements.  CSC requires manufacturers to seek a whole-of-enterprise social compliance of suppliers via independent assurance of compliance with International Labour Organisation (ILO), Worldwide Responsible Accreditation Production (WRAP) certification, Business Social Compliance Initiative (BSCI) certification or other equivalent certification.

ILO Conventions refers to:

• Freedom of association and collective bargaining (convention 87 and 98)
• Elimination of forced and compulsory labour (conventions 29 and 105)
• Elimination of discrimination in respect of employment and occupation (conventions 100 and 111)
• Convention 155 – Occupational safety and health and its accompanying recommendations NO: 164; and
• Convention 161 – Occupational health services and it’s accompany recommendations NO: 171

To find out more download this informative PDF about product certification schemes. 

NB: Compliant Supply Chain criteria is a not mandatory requirement, so may not be included in all GBCA recognised product certification schemes.

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GREEN STAR and LEED INNOVATION CREDITS

Innovation credits are a pathway for a Green Star projects to pick up additional credits and points.

30EB Global Sustainability – LEED, PILOT CREDITS ‘Social equity within the supply chain’.

Social equity within the supply chain, is an ‘innovation credit’ option available for Green Star and LEED projects.

This credit addresses social equity for those involved in the production of materials and products used in the project, including the stages of raw materials extraction, processing, manufacturing, and assembly of final components and products.

 Green Star Innovation requirements

A Credit Interpretation Request (CIR) must be submitted by the Project team, detailing how the credit will be adapted using the Green Star Rating tool prior to submission being made. Find out more about Innovation here. 

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CONSTRUCTION COMPANIES

Lend Lease

Lendlease works closely with suppliers to ensure they demonstrate compliance with social, ethical and environmental considerations.

They expect their suppliers to have human rights policies and records consistent with the requirements of Lend Lease’s Global Environment and Health and Safety Policies. They also expect their suppliers to have an Environmental Management System that ensures compliance with their global standards of operation and minimal impact on the environment.

Their overall objective is to procure products from and to do business with, suppliers that are aligned with their aspiration to be a global sustainability leader, by engaging with every part of their supply chain. Find out more about Lend Lease here. 

 

Mirvac

This Changes Everything is Mirvac’s commitment to its people, customers and suppliers and sets out clear sustainability targets and steps to achieve them. One of these targets includes Mirvac’s commitment to prequalify 50 per cent of its supply chain, by value, on social and environmental sustainability criteria by the end of 2015. 

In Mirvac’s 2015 Sustainability report

Mirvac classifies its suppliers as companies that provide goods, services and materials.  They engage with their suppliers by sustainability questionnaires and a vendor code of conduct through their online system and personalised dashboard.

Key areas include -corporate responsibility and governance, people, occupational health and safety, community, supply chain, risk and environment

More information can be found in Mirvac’s 2015 Sustainability report, page 91.

The GPT Group

VISION

Our team vision is to deliver continued value to tenants and shareholders through the achievement of the best possible commercial outcomes from all procurement activities across all business units. We will ensure that GPT's policies, including sustainability policies, remain at the heart of our procurement decisions as we continue to maintain our world leading position in sustainable real estate. 

WE WILL

Deliver strategic and innovative supply solutions and policy guidance that bring ongoing value, efficiency and compliance to the GPT's procurement operations.

OUR STRATEGIC PLAN

Our vision of supporting education, communities and GPT services through procurement excellence will be supported by focusing on the following priorities.

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CORPORATIONS

Commonwealth Bank

Using our influence to enhance environmental, social and economic outcomes in our supply chain

As one of Australia's largest organisations we purchase a wide range of products and services in the course of our everyday business, from catering and vehicles to computers and stationery. We need to know that our suppliers and their suppliers in turn, are acting with integrity.

Sustainable supply chain management

In conducting our day-to-day business, the Group expects our people to:

• Comply with laws and regulations
• Act in a socially responsible and ethical way
• Value and respect people of diverse backgrounds, experiences and perspectives
• Carry out robust corporate governance
• Have a proactive focus on risk awareness and management
• Manage environmental impacts
• Act responsibly to safeguard the Group, employees, customers, brand, reputation, assets and information.

We expect that our suppliers will adhere to these same standards. This year we refreshed our Supplier Code of Conductto clarify and reinforce the social, ethical and environmental criteria we expect our suppliers to meet, along with their own suppliers. For more information click here.

Westpac

Sustainable Supply Chain Management

We take great care in selecting suppliers who share our commitment to best practice and we aim to realise the potential of our supply chain in driving positive social outcomes.

Westpac was a pioneer in sustainable sourcing. As the first Australian bank to establish a sustainable supply chain management policy, we were an early adopter of world leading sustainable sourcing practices aimed at ensuring our suppliers' business practices demonstrate high standards of sustainability.

One of the cornerstones of our approach is a commitment to work closely with our suppliers to identify, mitigate and manage risks. This approach is set out in our Sustainable Supply Chain Management Framework. Find out more here.

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The above listed company initiatives are just a small snapshot of what businesses are doing to address social and environmental compliance within their supply chain.

Every business wants to be supporting other businesses that are doing the right thing, taking an ethical approach to addressing not only environmental impacts, but also looking after the human and labour rights of workers, especially vulnerable workers.

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If you want to know more:

• Call Libby on 0448 026 508 or email us
• For more information on our Sustainable Supply Chain services
• Otherwise please subscribe to our newsletter in the footer of our website and get access to our free Sustainability Mindfield guide

Sustainable Supply Chain - An introduction

Supply chain issues are well known in the apparel, electronics and sporting goods industries, but what about the interiors and building products industry?

INTRODUCTION

Businesses want to protect their brand and supply chain issues play a part in protecting a company’s reputation. Everyone sadly remembers the collapse of the Rana Plaza building in 2013 which tragically killed 1127 Bangladesh workers, and what this meant to the brands associated with this tragedy.

Over the last few years, and even more recently, in the last 6 months, I have seen a huge momentum swing in regards to sustainable supply chain in the interiors and building industry. Customers want to purchase ethical products. Particularly when so many products or materials are being sourced from developing nations where there is a greater risk for human and labour rights abuses, e.g. China, India, Vietnam, Taiwan etc

What is driving this?

There are a number of factors.  Firstly, larger corporations are trying to do the right thing and have systems in place to ensure they conduct strict due diligence of their suppliers, to ensure they are purchasing ethical products.

A number of multinationals and construction companies are signatories to the UN Global Compact (UNGC). The UNGC lays the framework for organisations to ensure they support and respect international human rights and to ensure they are NOT COMPLICIT in human rights abuses.

Corporations are issuing their suppliers with a Suppliers Code of Conduct, to help reduce risks and to set out the requirements for social and environmental compliance.

Secondly, Ecolabelling schemes have included ‘compliant supply chain’ in their standard requirements and the Australian Green Star Rating Tools and the US LEED Rating Tools have an Innovation credit for ‘Social equity within the supply chain’.

What does a sustainable supply chain look like?

A sustainable supply chain or responsible sourcing or ethical procurement means that companies are addressing social responsibility and environmental management within their supply chain. One of the first steps in this process is to initiate a ‘Suppliers Code of conduct’.  A Suppliers Code of Conduct sets out a list of requirements for the suppliers to comply with. These requirements include:

Social responsibility:

• ensuring safe work practices
• no forced, bonded or child labour
• harassment and grievance policies, procedures and mechanisms
• anti-discrimination and bullying
• ensuring workers’ rights in regards to  freedom of association and collective bargaining
• fair working hours and compensation
• anti-corruption and bribery

Environmental management:

• ISO14001 EMS certification
• environmental policies and procedures
• compliance to local and national environmental regulations and laws
• waste and energy management strategies
• emission reduction initiatives
• low toxic products to include eliminating prohibited substances
• Product stewardship

So what does this mean for product manufacturers?

There are two key considerations:

1. Your organisation may be asked by one of your clients, or a construction company to comply with THEIR Suppliers Code of Conduct, which means implementing social and environmental initiatives within your business.
2. There is an expectation that YOUR company will initiate a Suppliers Code of Conduct to your suppliers, to ensure they are not complicit in human rights abuses and have a good level of environmental compliance.

Why do you need a sustainable supply chain?

On a very basic level, your clients and customers have an expectation that the products they are purchasing are made ethically, that there are no human and labour rights abuses (e.g. child labour, unsafe working conditions, forced labour, and unfair pay) and have systems in place to manage environmental impacts.

If your company is sourcing products, materials or components, or any service that is related to your business then it would be appropriate for your organisation to ensure your suppliers have environmental management and human and labour rights policies and practices.

Some of the larger corporates and construction companies have a ‘Suppliers Code of Conduct’ which outlines basic human and labour rights expectations.

What does it take for a company to get serious about implementing a sustainable supply chain?

Initiating a Suppliers Code of Conduct, is the first step, but by no means the only step. You need to understand WHERE the most risk is in your supply chain and where you have the most influence with your suppliers. Mapping your suppliers can help in this process. 

A Code of Conduct will set out what your company expects from your supplier, but it really needs to be a collaborative process, you need to work together to address areas where there is the potential for human and labour rights issues.

A questionnaire asking the supplier what their practices are in relation to environmental management and labour rights will also help you understand the current state of play. 

Communicate to your suppliers, why it’s important to your company (and your clients) and that you are there to support them.

On a final note…..

For product manufacturers, initiating a Suppliers Code of Conduct and ensuring a sustainable supply chain will be a clear competitive advantage for early adopters, but I suspect over the coming years, it will be a prerequisite for companies doing business with these larger corporations.

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If you want to know more:

• Call Libby on 0448 026 508 or email us
• For more information on our Sustainable Supply Chain services
• Otherwise please subscribe to our newsletter in the footer of our website and get access to our free Sustainability Mindfield guide. 

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.