The Supply Chain Sustainability Forum at Sustainability Live 2023
Summary
TLDR在这段视频脚本中,讨论了供应链可持续性的重要性,并探讨了企业如何确保其供应商达到适当的标准。讨论涵盖了技术选项、数据收集、供应商参与和教育等方面。嘉宾们分享了他们公司在供应链可持续性方面的经验和挑战,包括如何通过数字工具监控性能、如何与供应商合作以及如何通过教育和培训提高内部和供应链的理解。此外,还讨论了碳抵消和碳移除在解决范围三排放问题中的作用,以及政府在支持中小企业可持续性转型中的作用。整个讨论强调了跨行业合作、教育、创新解决方案和战略规划在实现供应链可持续性中的重要性。
Takeaways
- 📈 **供应链可持续性**:公司需要确保供应商达到一定的标准,这不仅是挑战也是责任,尤其是在供应链较长的情况下。
- 🌐 **技术应用**:技术工具可以帮助公司收集信息、监控进度,并与供应商进行有效沟通,但技术不是万能的,需要与供应商的实际行动相结合。
- 📚 **教育与培训**:提升公司内部及供应链中相关人员的知识、理解和教育是实现可持续供应链的关键。
- 🔍 **风险管理**:识别和理解供应链中的气候风险对于确保供应的稳定性至关重要。
- 💡 **创新解决方案**:在处理难以减少的排放时,碳移除和碳补偿可以发挥作用,但需要更多的审查和正确的应用。
- 🔄 **循环经济**:通过更好的循环性实践,如改进产品设计、减少包装,可以有效地推动可持续性目标的实现。
- 🤝 **行业合作**:行业间的合作可以加速减碳进程,共享供应商信息,并提高整个行业的可持续性标准。
- 📉 **成本与价值**:在采购过程中,需要平衡成本节约和减少碳排放的关系,考虑长期的业务价值而不仅仅是短期成本。
- 📊 **监测与评估**:使用数字工具监测供应商的表现是确保他们达到预期标准的关键部分。
- 🌱 **供应商支持**:对于成熟度不同的供应商,公司应采取不同的支持措施,包括资金支持和知识共享。
- ⚖️ **合规性与合作**:在推动可持续性议程时,需要考虑反垄断法规,确保合作的合法性。
Q & A
如何确保供应链中的供应商达到正确的标准?
-公司可以通过设定最低标准、政策,并超过立法要求来设定基准和期望。通过数据收集、与供应商的持续沟通以及与尚未在可持续性轨迹上的供应商启动对话是关键。
了解供应链的范围和连接是挑战的第一步,那么如何进行有效的供应链映射?
-通过数字工具收集信息,并与供应商进行接触和沟通。理解你的一级供应商相对容易,但了解二级、三级甚至更深层次的供应商则更具挑战性。
在供应链中,如何整合供应商并确保材料的可持续性?
-通过与供应商的沟通和整合,确保材料的可持续性。例如,将可持续性作为招标和询价的要求之一,以及在合同和业务审查会议中嵌入可持续性标准。
Schneider Electric如何确保其供应链的可持续性?
-Schneider Electric与其前1000名供应商合作,这些供应商代表了超过90%的公司排放量。公司还设定了减少范围三排放的目标,并使用数字工具来基线化、监测和跟踪进展。
如何最好地监控和确保供应商达到设定的标准?
-使用数字工具和服务,如Schneider Electric的zygo品牌下的一系列服务,不仅帮助公司进行基线化和理解,还提供能源现场审核,帮助公司看到他们的进展并设定路线图和目标。
在促进可持续供应链和实现目标时,公司可能面临哪些挑战?
-教育和理解是最大的挑战,因为可持续性领域在最近几年迅速变化,而组织内部的知识并没有同样快速地转移。此外,成本也是一个挑战,需要教育人们从整体业务的角度而不仅仅是采购的角度来看待成本。
如何通过教育和培训提高供应链中的知识水平?
-通过举办教育会议和研讨会,提供可持续性、气候变化和人权等方面的基础知识。此外,创建可持续性学院,提供便携式模块,让员工能够在移动中学习。
在采购过程中,如何平衡成本节约与减少碳排放的需求?
-在采购决策中,考虑长期的业务价值而不仅仅是短期的成本节约。例如,即使获得FSC认证的纸张成本更高,但从长期来看,它可能有助于避免销售损失。
碳移除和碳抵消在应对范围三排放中扮演什么角色?
-碳移除和碳抵消在处理难以减少的排放时发挥作用,但它们不是唯一的解决方案。需要更多的审查,以确保这些项目真正地提供了减碳效益。
政府如何支持小型企业在可持续性方面的变化?
-政府可以通过提供清晰的指导和支持,帮助小型企业理解并实施可持续性实践。此外,政府可以提供财政激励或补贴,以鼓励采用更可持续的做法。
循环经济在实现可持续性目标中扮演什么角色?
-循环经济是实现可持续性目标的关键支柱之一,它鼓励更有效地使用资源,减少浪费,并促进产品的再利用和回收。
Outlines
😀 供应链可持续性与公司标准
第一段主要讨论了供应链可持续性的概念,以及公司如何确保供应商达到既定标准。提到了技术选项理论上可以简化流程,但实际挑战在于如何确保这些标准得到满足。讨论强调了设定最低标准、政策、数据收集和与供应商的沟通是确保标准得到满足的关键步骤。
🔍 监控供应链性能的最佳方法
第二段深入探讨了如何监控供应链性能,确保供应商达到公司设定的标准。讨论了数字工具的作用,包括使用AI和数据分析来跟踪和衡量进展。同时,也强调了教育供应商和提供必要的支持,以帮助他们满足可持续性要求的重要性。
🌐 利用新技术促进可持续供应链
第三段讨论了新兴技术在促进供应链可持续性方面的潜力。强调了AI工具在数据跟踪和警报管理中的应用,同时指出了技术解决方案需要与现有业务流程相结合,以确保数据能够为决策提供支持。此外,还提到了在评估技术时需要考虑的潜在风险和挑战。
🤝 供应商合作与行业协同效应
第四段强调了与供应商合作以及整个行业协同工作的重要性。讨论了通过集体行动和行业合作来加速减碳过程的好处。同时,也提到了在实施这些措施时可能出现的意外好处,以及如何通过教育和支持供应商来克服挑战。
📈 平衡成本与可持续性目标
第五段讨论了在采购过程中平衡成本节约和可持续性目标的挑战。强调了需要对采购团队进行教育和培训,以确保他们理解可持续性对业务的长期价值。同时,讨论了如何在成本和可持续性之间找到平衡点,以及如何通过创新和战略规划来实现这一目标。
🌿 循环经济在供应链可持续性中的角色
第六段探讨了循环经济在实现供应链可持续性目标中的作用。讨论了通过改进循环性实践来减少碳足迹的潜力,并强调了在采购商品和服务时考虑循环性的重要性。同时,也提到了在实施循环经济时可能遇到的挑战,如电池回收过程中的废物处理问题。
📉 采购目标与碳排放减少
第七段讨论了如何在采购目标中纳入减少碳排放的要求。强调了为采购团队设定具体的可持续性关键绩效指标(KPIs)的重要性,并讨论了如何通过战略规划和创新方法来实现成本效益和可持续性目标。
🤔 政府在支持中小企业可持续性中的角色
第八段提出了关于政府如何支持中小企业(SMEs)在可持续性方面做出改变的问题。讨论了政府可能提供的潜在支持,包括合规性指导、教育和财政激励措施,以及如何通过政府的行动来加速可持续性实践的采纳。
🌱 碳移除与碳抵消在减排中的作用
第九段探讨了碳移除和碳抵消在解决难以减少的排放问题中的作用。讨论了碳抵消项目的真正价值和它们在减排策略中的位置,同时强调了需要对这些项目进行更多的审查和评估,以确保它们的有效性和可持续性。
Mindmap
Keywords
💡供应链可持续性
💡技术选项
💡标准设定
💡数据收集
💡供应商参与
💡风险管理
💡教育和培训
💡成本效益分析
💡碳足迹
💡循环经济
💡合规性
Highlights
讨论了供应链可持续性的现状,特别是公司如何确保供应商达到适当的标准。
强调了技术选项理论上可以简化流程,但实际上需要公司主动设定标准和期望。
提到了数字工具在信息收集和监控供应商表现方面的作用。
讨论了供应链映射的重要性,以及理解一、二、三、四级供应商之间的联系。
强调了与供应商的沟通和参与对于推动可持续性议程的重要性。
提到了通过教育和培训提升公司内部和供应链上的知识水平和理解。
讨论了成本作为推动可持续性的一个挑战,以及如何通过教育来克服这个障碍。
强调了跨行业合作和共享供应商信息以加速减碳的潜力。
提到了在供应链中识别和支持不同成熟度水平的供应商的重要性。
讨论了通过集体行动和行业合作带来的意想不到的商业利益。
强调了在供应链中识别风险和机会,以及如何通过教育和参与来解决这些问题。
提到了碳移除和碳补偿在处理难以减少的排放量中的作用。
讨论了采购团队在节约成本和减少碳排放之间如何平衡。
强调了循环经济在实现可持续性目标中的关键作用。
提到了在供应链中推广可持续性时面临的教育和理解挑战。
讨论了政府在支持中小企业可持续性和合规性方面可以发挥的作用。
强调了在供应链中实施可持续性措施时,需要考虑的法律和监管框架。
Transcripts
foreign
[Music]
discussion which is the supply chain
sustainability
so I will start with our introductions
starting on the far side uh closest to
me we have uh mostly directors
sustainability
G we have AV Barnes with us head of
sustainability and climate change
strategy at Marsh Hannah Bell senior
procurement sustainability manager at
haliana gski company and we have last
but not least Alexandra Classen client
development manager at Schneider
Electric thank you all for joining us uh
full biographies of all of our guests
are available on the app which means I
don't have to sit here reading all their
biographies out which is always slightly
awkward when people are sitting next
year so do uh do look out for those as
well so we are looking at the supply
chain sustainability situation and
particularly where I'm going to start
with is how companies can make sure
suppliers are reaching the right
standards I know there's technology
options now which should in theory make
things easier but um Rachel I'll start
with you
um how do you feel companies can make
sure that they're hitting the right
standards so I'm part of Elsewhere the
London Stock Exchange group so our
supplier base is pretty mundane to be
completely honest with you but that
doesn't mean to say that that's not a
challenge so you know we're not
producing uh things using palm oil or
things like that but we've got a supply
chain of probably five thousand
so that actually means that we have a
really really big responsibility to
ensure that we're setting a bar and I
think to go to your question that we
can't really ensure it but we can
certainly set a bar and set expectations
and we'll go into this I'm sure more in
the panel as well so minimum standards
policies more than legislation data
collection I mean we'll
the list goes on really but ensuring we
can't really do but maintaining
standards engaging with our suppliers
and kicking off conversations with some
suppliers who maybe aren't in that
trajectory as yet is is absolutely key
maybe I I completely agree insurer is a
really big word and I don't think any of
us would be brave enough to say that but
I think it starts with the mapping
understanding the extent of your supply
chain
um and it's relatively easy or it should
be to understand your tier one suppliers
but going below that to tier two three
tier four understanding uh the
connections I think is is the first real
challenge that a lot of people have
sometimes because those suppliers may
feel that their downs or their Upstream
supply chain is sort of proprietary and
confidential so that can be a real
challenge but once you have a map of
that digital twin that Knowledge Graph
that that understanding then it starts
with the digital tools to
um collect information where that's
available but also engagement but I
think ensure feels a bit too big a word
he does indeed Hannah yeah thank you so
I think on like the two Supply chains
that we've just mentioned here
um halion we manufacture products like
uh Sensodyne Aquafresh so consumer
Healthcare products which do have Supply
chains which are linked to things like
palm oil and mint uh different
um materials like like agricultural so
for us um that kind of supplier
integration and that supply of
communication is definitely fundamental
for everything that we do to obviously
ensure that those materials are
sustainable so I think the tools and the
techniques that we've been using as a as
a business as a supply chain and as a
procurement function is very much
aligned to a lot of the tools and
processes that we have already
established within the business so
making it really easy for like our
procurement category managers or our
stakeholders to actually embed
sustainability and that education with
suppliers so I could just give an
example of that is making sure that
any tenders that we do any rfqs with
suppliers sustainability is embedded
into that as a requirement so first of
all you know you're completely
understanding how mature that Supply
you're raising sustainability and how
much you can work you know what work you
need to do with them
and the second part would then be
obviously to embed it into kind of
contracts and you know a standard really
review as part of the business and
Supply review meetings to make sure that
they are meeting the expectations and
where they're falling short how we can
um support them with that as well
um maybe if I can just give one example
of how how we've done that is this year
we did our first uh helion supplier
sustainability event
so in that event there was over 200
people and completely virtual it was a
three-hour session and what we did was
we included all of our suppliers and set
our expectations of what we as a
business need them to do to support us
on this sustainability agenda so it
covered everything from carbon reduction
sustainable sourcing human rights water
so what we did was we set these
expectations with suppliers and we're
really clear with what we wanted them to
do but on the back of that we also gave
some educational sessions to those
suppliers of how they can actually meet
that because I think it's all very well
and good saying you need to do X Y and Z
but if you've got a supplier who's small
potentially diverse they don't really
know kind of exactly the right steps to
take then we wanted to give them that
education as well on how to do that
Alexandra yeah
um I'm just going to say same for
everything but
um I guess I'm wearing two hats today
Schneider Electric because we're both a
practitioner obviously we have a very uh
long supply chain we're currently
working with our top 1 000 suppliers
that represent over 90 of our emissions
um but also as a practitioner as a
provider because we have essentially
end-to-end supply chain recognization
programs that we do for clients so I
completely agree with Rachel's Point
around initially setting that bar so if
your suppliers don't see that you're
serious about reducing your carbon
footprint then why would they follow
suit setting targets specifically for
scope three we're seeing more and more
companies do that as well
um and you know Schneider Electric has a
Target to reduce our scope three
emissions by 35 by 2030.
um and then yeah making sure that you're
really looking at the the Baseline
calculating those emissions because yeah
as you said Hannah
especially smaller companies are not
going to be able to do a lot of this
initially it's it's a bit of a whirlwind
when you first start to get involved
even larger companies
um so I think making sure again setting
up our leadership communication and then
collaborating with your suppliers which
I'm sure we'll be talking about much
more detail well that moves me on very
nicely to where I wanted to go next
because setting that bar and setting
those standards is is part of the
challenge
monitoring it and making sure those
standards are being kept is that I guess
the second part of that where would you
all stand on how is best to go about
monitoring that kind of performance
because it's all well and good setting
the standards saying this is what we
expect you have to make sure people are
actually reaching that I'll open this up
to all of you what is the best way from
your experience of of monitoring it and
making sure those standards are being
met
um so uh digital digital tools are a
great way of doing that um at Schneider
we have a whole Suite of Services Under
zygo the brand of psycho that um
essentially not only help companies to
do that kind of baselining understanding
which facilities are you know the the
most difficult for them to decarbonize
doing Energy site audits
um really understanding that landscape
first but then we also have
um psychoactivate for smes so that's
like a simplified process but
essentially once you can't
you can't manage what you can't measure
so once that Baseline is set then there
are the tools that basically enable the
companies to see how they're progressing
because they can also set road maps set
a Target themselves and then essentially
the supply chain programs that we have
where we work with sponsors they're able
to onboard their suppliers we manage
that process we do the education series
for them and then the supplier sponsors
are able to see actually how their
suppliers are progressing and how they
are meeting their targets so it's the
entire kind of Journey to actually
acting and and making those decisions
around different decarbonization levers
like renewable energy or circularity
Energy Efficiency or electrification
I was just going to say on the back of
that as well I think the monitoring
piece when you mentioned about bringing
it into kind of the suppliers and into
the business and how the business need
to to kind of really own that as well so
I think the kind of the capability
around the business and working with
suppliers you know how is a is a
business set up to really facilitate
those conversations and measure with
suppliers I don't think it should you
know it's not just down to the
sustainability team to have a
conversation with like you said you know
got multiple thousands of suppliers the
kind of the education with procurement
functions with supply chain needs to be
there to be able to kind of monitor
and facilitate those discussions and so
yeah we've kind of been working
um internally with our teams to be able
to kind of set them up to have a bit of
a springboard to facilitate
conversations so you know how you can
potentially track a supplier through
contract Clauses potentially looking at
kpis embedding it into your business
review meetings how do you how does it
become a natural kind of organic part of
your business like you would monitor
cost risk and quality with your
suppliers that's kind of how we're
trying to and to do that as well with
sustainability I couldn't agree more
it's the embedding and it's the
empowering colleagues and the education
and the training so this just becomes
the way we do things we sort of talk
about sustainability data as if it's a
thing out there on the side to be owned
by sustainability teams but the more
that we consider it just data that the
business uses for decision making
um I think we're seeing some really
interesting development in AI tools as
well to track and understand some of the
alerts that we see
um the concern with generative AI when
we see is that being used to assess
sustainability is its potential to
hallucinate and so just not quite know
the veracity of the information but that
can be really useful because the news
sources around the world can give you a
great Insight
um The Challenge there is that most of
the information you get is an English
language it's very difficult to get good
AI that is
speaking in sort of some of or that is
Reading in in some of the less
well-known languages so I think that's
um a key way to start implementation as
well
I come at this very much from a risk
perspective because all of our
organizations make commitments about the
way we behave and so it's really
important to us that we live and deliver
what we behave and so keeping on top of
those alerts is critical to make sure
you're not making statements that are
ultimately found to be flawed
and I'd also say it's all very well and
good collecting the data but what are
you going to do with it
um I mean we've said it's not up to you
know sustainability experts to sit there
and be like okay and going through
granularly detail thousands of data
points so it's actually understanding
what you're collecting and why and then
how that's going to inform decisions
because you know take carbon for
instance we're taking carbon emission
data out of our from our suppliers to
understand it's helping form our scope
for you purchase goods and services
that's amazing
what else are we asking why are we
asking them what are we doing about
human rights where's modern slavery what
is their minimum standards around kind
of other compliance you know have they
have we seen media alerts on things
around greenwashing like all of this
information we could collect all the
information in the whole world but if
it's not them being used to informed
decisions then it's it's a job half done
basically
I want to return to something you've
touched on there uh briefly Amy and
that's about new technology
um I also work across our procurement
magazine another one of our sister
titles which you may have seen on the on
the board out there it's a fabulous read
another gratuitous plug I apologize for
that
um and as barely a day goes by when I
don't get another uh press release or
alert about this new all singing dancing
toy that will work on on this part of
the procurement process or the supply
chain process which is the the Silver
Bullet for solving all problems
and they're all very very exciting but
with so many big new ideas new
technology new business models startups
cropping up all over the place there's
so many of them around at the moment
um and Amy I'll start with you on this
because you mentioned AI which ones of
them sort of excite you most which of
these new technological advances excite
you most in terms of being genuinely
useful in creating a sustainable supply
chain
you've got to ask yourself question
first what question are you trying to
answer how are you going to use the data
what actionable insights are you going
to generate from that because some of
the data platforms I think are
do run the risk of being data for data's
sake as opposed to if you're thinking
about your category manager and your
category manager already has a really
busy job how do they ingest that
information how does it inform their
decision making so I think it's actually
how do the tools embed with an existing
business processes this can become BAU
um I do think there are some some really
exciting developments
um for people in what I'd call the real
economy manufacturing rather than
professional and financial services but
people in the real economy the ability
to track goods and services as they
cross borders I think is very exciting I
think we need to be aware that we've got
real blind spots when we see Commodities
moving sort of into China into Schengen
it's very difficult to track Commodities
but there's some interesting
developments there some really
interesting uses of visual intelligence
so satellite data to actually verify
because if you're thinking as we think
especially about carbon and as we think
more about nature risk being grounded in
place in space is even more important
just having a company name for your
supplier isn't going to answer the
question so using visual intelligence
and satellite data to actually locate
the the asset and to understand the
footprint
um lots of lots of cool AI which sounds
cool let's see if it let's see if it
informs insight and decision making so
without naming names of providers I
think they're some of the Technologies
I'm watching closely
I'll open up to the panel sorry I was
going to say one thing that we've
actually discovered is within our own
supply chain having Solutions within
that so I mean I don't know what size
people's businesses are and things
um but obviously we're all part of a
bigger value chain and these
conversations are ongoing from both a
customer and a supplier perspective and
actually some of our suppliers who are
working in different spaces are working
in data and pieces like that and then a
Shameless plug London Stock Exchange
group we aren't just the exchange we're
so much more but we also have financial
data and information so Commodities
tracking tick World check you know where
are the risks within your supply chain
tick so we actually have a lot of tools
under our own belt that we can use and
enable but shockingly it's actually
quite hard to use your own stuff because
you forget about it so again like
looking look actually within your own
four walls or or a bit further out to
see what's there because there might be
stuff under your nose that you weren't
aware of
I'll pass that down the line any other
of the new technologies which
particularly excite you at the moment
yeah
yeah what are you using this technology
for and then if you kind of break apart
what your Supply Chain management
program right for yourself if you're in
that kind of build phase the kind of the
ACT phase and maybe accelerating your
progress right I think there's going to
be different tools for those different
stages but what we've seen um working
with our own suppliers and on
um the other projects that we work on
for clients is that when it actually
comes down to taking action there's a
lot of stakeholder engagement and
communication that is required and AI is
never going to be able to do that right
that's just that's its limitation so I
think I guess a word of caution that as
these Solutions are developing
um I think is really important to make
sure that uh you're not necessarily
jumping to a technology solution that
sounds really cool because it could have
some repercussions later down the line
um and again right now companies are
struggling with internal resources to
even understand so I think we're going
to see many more tools coming up but
making sure that you're communicating
with your suppliers and engaging them is
I think going to be really critical
yeah just off the back of that comment
I'm linking to a conversation I think we
had earlier in terms of the data and the
Technologies and the vast amount of kind
of different options that are out there
sometimes we can get a little bit lost
in trying to make sure that we've got
the perfect technology the most accurate
data and it's taken away that from the
time that we should actually be working
directly one-on-one with these suppliers
you know with the supply chain to
actually you know decarbonize or for
sustainable sourcing so I think it's
also a bit of a kind of a call out to
similar to what you've just said just to
be careful with the vast amount that
kind of are coming up they can be great
but not to take away from the work that
that we need to do to really kind of
move the needle
looking at other challenges though that
um companies may have about promoting a
sustainable supply chain and achieving
one for you let's let's break down what
some of those big challenges are
um I'll start with uh with you Rachel on
this one as you're closest to me I
apologize for that for you what do you
see as the big challenges so actually
reaching that point where you feel
you've got a sustainable supply chain in
place the biggest challenge for us
absolutely is education and
understanding and knowledge both within
our own business and also the supply
chain about the why and that is because
this space is
shifted changed moved rapidly even in
the last two three years you know
everyone everyone's talking about scope
three emissions
go through is more than purchased goods
and services but purchase goods and
services your supply chain what that
looks like is absolutely the I was gonna
say the elephant in the room is not
we're talking about the elephant but it
is very much the piece that everyone
wants to know about but the knowledge
both within
organizations hasn't moved that quickly
and that is not a blame thing at all but
think about the role of a category
manager they're all of the category
manager isn't to understand deep
decarbonization within their own
business but should it be so it's it's
things like that and exactly as Hannah
was saying earlier as well you know
working with those suppliers to educate
them you know what's happening but also
on our side as well to equip our um our
category managers with these
conversations we talk a lot about how
we're in engaging educating and
equipping our colleagues for the future
for sustainability and this is
absolutely one of the key Focus areas
for us so it would be knowledge
understanding and education within with
from both sides
okay that's one challenge I'll I'll take
that down the line my answer was going
to be virtually identical I'm afraid
because I have 55 000 colleagues
and actually how does how does what
we're talking about inform their
decision-making processes how do we
educate train make it really consistent
I can't remember who it was that said
earlier on the panel but also having a
consequence what's the consequence of of
some of the red flags we may see and I
think that's really challenging to be
clear within your own business when you
may have a critical supplier who fails
to meet an objective what's the approach
that you take because it does need to be
collaborative this isn't a you can just
penalize straight away so Education and
Training I think at the moment but
before I go on to other challenges if I
could push that on another step when it
comes to that education and
communication however both of you as
you've raised this as an example
apologies
um actually had success in cutting
through and making sure those messages
land what what tactics approaches have
you done to actually make those
approaches land
we've done a couple of things over the
last year actually it's been a it's been
a direct project and also an objective
within a group procurement as well which
is to host a number of Education
sessions for them so that's you know
sustainability experts coming in talking
to category managers group procurement
at large and saying by the way this is
what climate change is you know this is
what scope is you know just from a from
an environmental perspective and then
what is human rights what is due
diligence so a real sort of 101 which is
really belittling it because obviously
we know this isn't like a 101 it's like
huge systemic stuff and then we have
also been facilitating education
sessions with our tier one suppliers as
well saying you are in scope of our
science-based Target for instance what
is what is an emission what is this so
we have been doing a bit of a back to
school really for these suppliers so
we've we've kind of Taken ownership of
the fact that we know this is a problem
not a problem a gap so how can we
actually fill that Gap and and be
proactive in that so that's what we've
done
uh to be really brief just thinking
about our own colleagues we debated long
and hard whether to make this training
mandatory or not and we opted on not
because we didn't want it to feel like a
tick box exercise I work in a financial
services so there's a lot of compliance
training we wanted to encourage
engagement and so doing that we've we've
still had thousands of people come
through the course we have made it
compulsory as an onboarding
um so we're trying to be really
thoughtful about how do we make the how
do we make people feel that this is
something
that's good for their careers that they
want to be interested in has been a sort
of a key objective of us but I want to
yeah I'm just going to say we've done
something similar we've helion created
what we've called a sustainability
Academy so it's not just for procurement
or supply chain but it's for the for the
full business and and these are kind of
bite-sized modules that you can get on
your phone and audio kind of on the go
where it's kind of broken it down topic
but topic by topic uh kind of 10 minute
bite size into you know what is climate
change climate reduction what are the
three big initiatives that you need to
go after
Etc so I think that definitely building
that capability is something that is uh
is critical and then I think that then
leads me on if I can to the one of the
next challenges which I think we have
seen
um kind of embed in sustainability and
and kind of with the the whole program
is around cost so obviously I work in a
kind of a procurement function which is
stereotypically looking at Cost savings
uh driving value for the business which
it still is um you know the bread and
butter is that's what we're there for
however it's going beyond that now to
look at you know to get an FFC
certification for paper with our paper
suppliers might be a little bit more
expensive in terms of our standard cost
but looking at it more holistically and
looking at the long-term strategy of the
business and what consumers want so
although cost is seen as a bit of a
blocker or a challenge it's educating
people to understand well don't just
look at it from a procurement and
perspective but from a business
perspective if you're going to lose out
on sales what's that going to do in
terms of cost for the business overall
so again it really brings back to that
educational piece of not just training
kind of function by function but having
it across the business so that people
understand what decisions each function
takes and how that affects the overall
kind of sustainability strategy
um as well I think is super important
Alexandra yeah
um I think I'd say probably from
from our experience on one hand it's the
ability to take all of this information
take this it sounds like you guys are
doing really great engagement programs
and training and it's interesting that
in your roles you are having to have to
do that right it's not part of your core
business you know
um but yeah so so taking those trainings
and then what do then the suppliers do
right they again some some have more of
a homogeneous supply chain we have a
very vast one so half of our suppliers
are based in Asia roughly half the ones
that we are working with then us Europe
so then it's what which options are
available in those countries for example
so then you get into a whole different
tier of information around then how do
you take action and what is actually
available and one thing that we found
that has been
um you know really a kind of Cornerstone
of what we're doing is trying to
aggregate some of the suppliers to be
able to go to market for some renewable
energy solutions for example together so
basically they increase their buying
power and then they wouldn't have been
able to engage in this kind of more of a
kind of risky long-term procurement
approach that requires that's like meant
for companies that are larger or have
better credit ratings so it's this kind
of Consortium approach which we've done
for Walmart which we're doing for
different programs including energize
for pharmaceutical industry-wide program
um so it's it's taking them all the way
through what are the different actions
that are possible and then just lastly I
would say maybe around working with
whole Industries and trying to basically
get synergies because a lot of them
share suppliers right so so we have this
with energize we have this with catalyze
a new program that we've launched for
the semiconductor industry
and a lot of these industries and
companies want to collaborate you know
the pharmaceutical the way of 20
sponsors they really wanted to
collaborate
um but there's a lot of challenges
around that right so it's identifying
some of the shared suppliers and making
that information clear in terms of what
are the benefits of actually working
together because then we could just
accelerate the carbonization in that way
so I guess there's a lot of benefits
that you could foresee if you're putting
various things in place education
programs or so on in place for all of
you I always like to find out about the
unexpected benefits When different
measures and ideas have been put in
place
and things have happened that you didn't
necessarily expect to happen that have
been a huge benefit and I appreciate
this as a slightly uh off the ball
question but have you got any examples
of benefits you didn't foresee coming
when it came to putting these sort of
practices in place very happy to start
um so I work in Risk so for me a benefit
is avoiding a risk so just just so just
a weekly and um have you got that on mug
somewhere
so when we think about some of the risks
we're concerned in Supply chains um uh
Hannah summer Hannah's had some really
cool jobs
um and one and a lot of your work is
still working with farmers and so how
can we think about not just how is that
farmer behaving in a sustainable way but
what's the potential for climate change
to impact our certainty of supply around
that commodity uh whatever that may be
how can climate change impact the
infrastructure so when we think about
when we think about climate we think
about flooding in my world we often
think about rain we think about water in
terms of damage too much water we have
damage to flooding
too little water when it's a
manufacturing input or an agricultural
input we get stress but it's also
infrastructure and I'm sure many of you
are aware of the drought in the
Mississippi River last year and 67 of
U.S grain gets exported through the
Mississippi River so in a time where we
have the Ukraine war and Rain shortages
grain couldn't get to Market and crops
were being left in the field but the one
that blew me away was one of my Aviation
clients in the US who couldn't get
glycol to their airports to de-ice their
planes
because the Mississippi was on drought
well obviously they did but instead of
using a barge they had to use the
equivalent of a barge is either 16 rail
cars or 70 semi-trucks and that's a much
higher carbon footprint of that
commodity so understanding where all
those risks and those vulnerabilities to
climate change sit in your supply chain
in my world as a benefit
um just following on from that I think
um yeah when we looked at our supply
chain in terms of some of the the risks
that have then led to Opportunities and
kind of positive programs is that we
purchase uh various different materials
obviously mint being one of them which
is grown and grown by Farmers that
supports a kind of oral Healthcare
products and that was one of a key
product for us in terms of our Revenue
in terms of the actual impact on water
climate so we wanted to to look at that
product and take
um a more specific or detailed approach
with that and so when we were looking at
the industry there's no kind of industry
standard for mint like you would RSP or
for Palm or FFC for paper so we've done
a lot of work as a business with kind of
Farmers on the ground that's led to huge
positive
um improvements or programs that are
underway and so working with Farmers on
their kind of Sanitation working with
them to on good agricultural practices
which is something that initially we
didn't know was going to evolve from
this program and but looking kind of at
the risks and mitigating our supply
chain that's something that you know
that positive work is is underway
okay anything further either of you
would add to that unexpected benefits
maybe just on my last point that I
mentioned this kind of collective action
in in Industries uh I think we probably
didn't expect that
the kind of the ecosystem that develops
from from basically connecting companies
and again this kind of overlap of
suppliers uh it's a whole new universe
that kind of opens up which obviously
has positive business outcomes in terms
of engaging with companies more
um but just yeah just how much you can
accelerate quicker in collaborating in
that kind of way
I think sorry I was just going to say
something on the back of that that we
mentioned as well around having the
awareness that suppliers and your supply
chain are going to be at different
maturity levels so you might get a
supplier who's super mature that you
might be able to learn from them so as a
business we can learn from them they can
you know other suppliers can learn from
them but then we've also got suppliers
who were
um a lot less mature or a lot less
educated in terms of what do they need
to do
um you know to to reduce their carbon
footprint for example so that's one of
the opportunities that we've tried to
take is with those less mature suppliers
is supporting them whether it's with
funding or with our knowledge or
resource to to create a product carbon
footprint for example so that they've
then got something to measure against so
I think yeah once you've kind of delved
deep into the supply chain there are
definitely kind of benefits that come
from from some of those issues as well
and I'd also just pick up and say that
we're being asked these exact same
things by our customers as a supplier so
we've been having some incredible useful
conversations with our customers about
the standards that they're setting
within their supply chain of which we're
one of them and then seeing how that
trickles through the value chain or
understanding actually that some of the
expectations are placing on us are
pretty heavy-handed and do we want to
have that approach with our own
suppliers so it's it's been a very
interesting way for us to understand how
the supply web is is influencing and
it's a bit of a ripple
okay uh I walk home to the room now as
there is a I had a feeling Hans were
going to shoot up and they absolutely
have I believe um Charlie is appearing
at the back with the microphone just at
the uh very front row at the far end in
the white shirt
hello hi I'm Dr Shiva from ibank I just
come from the other side of the world
India and China I just had a 40 days of
some tall around on the investment
banking and something
I can see at two different side of the
world now
uh because if you see the production and
most of the factories and everything in
coming from India Pakistan Bangladesh
China
and they are the more producing of
carbon
and here we are talking about education
they are poverty line whether Goods or
the production of goods
and the farmers and the factory workers
are below poverty line we are sitting
here Financial Services talking about
education
and I can see it's too much cliche so I
would expect more controversial it
sounds controversial I'm thinking like
more you know I was listening the
transport which is good one and you're
one also good but you know of course you
have to do it through education but I
was thinking more Bolder piles otherwise
you know the sentiment will shift if the
people say organic immediately the price
went up you less congestion charges it's
finally come to the users so when you
put this one also if you just only talk
about education or anything the price
will go up but do we get the real
benefit out of it so that's what my
question
see if we can sort of refine that into a
slightly more uh direct question can you
covered a lot of points there so is your
question more about how we we've got to
pay closer attention to other parts of
the world rather than our own doorstep
is that is that is that a fair a subject
to round up with your question because
if you got through a lot of points there
so we'll take that as the question then
um do we feel we do need to maybe look
further than our borders to actually uh
to make these improvements when it comes
I appreciate it's quite a broad question
maybe yeah I was going to say I can um
kind of maybe take a step at answering
that one because yeah completely agree
that I think what we've seen in our
supply chain is some of the suppliers
from areas like um India for example
they're not getting the education that
potentially we are and yet we've been
asking them to do the exact same thing
as a supplier from London for example
and it's just not necessarily
um not necessarily fair so that's why we
are trying to take a slightly different
approach where we we measure our
suppliers in terms of their current
maturity and and then support them so
for example we do have a supplier from
India who supports one of our key Brands
and they didn't have the education or
the awareness of what a product carbon
footprint is so when we ask them to
reduce their footprint by 50 by 2025
they obviously don't know how to do that
so we've taken a kind of that
accountability and responsibility as
they are a key supplier to us to fund
their life cycle analysis and product
carbon footprint and support them with
kind of educating them on uh you know
what's what's the waste in their supply
chain how do they bring down their
footprint what options do they have to
move to Renewables for example so we are
trying but I think yeah there definitely
needs to be more emphasis and on that as
well
okay thank you for fielding that one uh
Hannah there were quite a few other
hands that went up so I will move on I
believe uh just in the center row here
was the next hand to go up can I see
where the other hands went up I'm just
struggling to see in the light I've got
one two three I think it was thank you
my name's Jenny Wardle
um I wear several hats but this one is
from regard to I'm on do a party
Parliament group women in Enterprise and
we're looking at sustainability in smes
and just what other supports about small
companies might need appreciate your
bigger companies but wondering what you
might feel the government could do to
support the change at the moment you'll
beavering away you're learning making
similar mistakes probably and so on is
there anything that could help in that
or is there anything that if the
government caused a compliance issue
which maybe don't want but what could
could be helpful just to make it faster
because you're all doing it and you know
what you're saving but as a country do
we know what we're saying Alex Sandra
made a really good point about
collaboration
um but we find we're quite nervous about
collaboration because of antitrust
regulations even where we're trying to
move an agenda forward so having Clarity
on how to move
forward in an efficient collaborative
way without falling foul of the law I
mean there have been times where we've
been trying to get to an agenda and the
first four months have been trying to
navigate antitrust and that doesn't feel
like an efficient use of our time albeit
it albeit it's sensible regulation
the other further notes on that one no
we'll move on to the next question thank
you very much for that one uh we have
two over there so we'll take uh the blue
shirt first and then I have no idea what
color you're wearing so I'm staring
directly into the stage lights but if
you could pass it on afterwards thank
you hi um my name is Jack Turnin um I'm
an originator at Drax um I'm just going
back to the discussion on in innovative
solutions
um and scope three admissions I'm
wondering what your views are on the
role of carbon removals versus carbon
offsets in tackling Hardware bait scope
3 emissions
I will talk very very quickly I think
there is a role but there's a right role
for them and actually I'm sure that
Alexandra's got a lot to say on that one
based on her role
um but yeah there absolutely is
um I think that there has been a huge
amount of noise in the Press around uh
carbon offsets some rightly and some
wrongly and I think that we as people
who are all trying to get to the same
thing need to be a bit human in that as
well
um you know companies can't be penalized
for doing something that they see as
having a real world impact which I
thoroughly believe most of those
projects have a real world impact and
are changing lives but I do think that
there does seem to be a bit of humanity
for muscle working in this space about
kind of what companies are trying to do
and the sort of new
things coming at us about what we
shouldn't be doing and why we shouldn't
be doing but I I completely agree there
is a role for it but it's not the only
it's not the only
um answer to the problem yeah and if I
can understand I think
um completely agree with your saying
I also think that
carbon offsets and carbon removals come
into the chain when it's when you're
dealing with harder to Abate emissions
right and you're seeing that with
science-based targets as well where
they're letting you
um as a say you as a company basically
um cordon off a certain percentage of
your emissions for um for carbon offsets
so it definitely has a role
does require more scrutiny and it's it's
fairly new right when new things come
onto the market there's going to be a
lot of uh a lot of kind of like
volatility around that so more scrutiny
but sure some of these projects are
really delivering yeah
decarbonization benefits okay we'll just
try and get through these last two
questions relatively quickly before our
next break but if I could have that
question please thanks very much Matthew
Greener from ariva
um our procurement colleagues are
normally targeted first with a savings
number
um how do you balance that with the need
to reduce carbon and reduce emissions
and are you applying objectives within
the procurement colleagues to reduce
those carbon emissions as well
maybe I can kick off with that one from
uh from a procurement function so
answering the the second question first
or around the objectives and for the
procurement function this has been the
2023 is the first year that we have set
um a kind of a dedicated kpi as part of
our procurement score card so you'll see
um obviously yeah cost savings up there
quality risk and sustainability so
specific uh sustainable sourcing kpis
and carbon reduction scope 3 kpis on
there so we're really trying to to drive
um to drive that kind of ownership like
you said of putting that on there I
think next year in 2024 we will be
setting uh objectives for specific and
procurement colleagues whether they've
got a big carbon impacting supplier how
are they measuring the reduction Etc so
I think that's something that that we
will be looking at
um and then in terms of balancing that
with with cost is it is difficult I
think I mentioned earlier that you know
that has been more the the Prime Focus
of a procurement function is to to save
that cost is to drive value for the
business but I think it's looking at
Value in a slightly different way so
rather than getting a cheaper product
per kilo you know cost per kilo it's
looking at what is the value gonna drive
for the business so if you're gonna you
know as part of your
procurement decision making and category
strategies you should be speaking to
your r d teams you should be speaking to
your commercial teams anyway so you
should be asking them what is the value
or what is the the loss if I don't get
FSC certification what would be the
sales loss as part of that for example
so it's trying to look at that and more
holistically and I think it's it's
definitely a mindset change as well and
I think for for leadership team for the
whole business to to show that if there
is an on cost of sustainability price
per kilo for this year what is the
revenue that we're going to get back
from it in five years it needs to be
more strategic rather than looking at
kind of year on year savings and so yeah
that's kind of the the education that
we're going through as well at the
moment
yeah maybe I could just quickly pick up
on that in terms of I think you said it
like it has to be strategic and you have
to have a kind of road map with
different solutions that some of them
are going to be your quick cost
efficient Energy Efficiency right that's
going to create some savings and then
some of them are more long-term
um like potentially procuring a
renewable energy you know
PPA power procurement agreement like
that but yeah it has to be it has to be
part of a road map and there's going to
be different considerations and risks
that you need to evaluate according to
your business's strategy and philosophy
really and I think sorry just super
quickly on the back of that I think as
well just looking at your category and
being Innovative with it so for example
if you manage a packaging or a paper
category what could you know not just
looking at the cost but what can you do
to drive down cost and sustainability so
can you have an impact on kind of design
of that product can you remove some of
the packaging which is going to remove
the cost and the sustainability impact
so kind of being you know Innovative
with with your strategy as well
okay I believe you had just had one last
question if we can keep this as short
and sharp as possible uh be very
grateful uh yeah Charlie just next to
you literally next year
I'm Olivia Mitchell and I lead on
sustainability marketing for both in
business in the UK
um I think we have identified across
both customers needs across different
Enterprise segments but also within our
supply chain that to drive
sustainability technology is definitely
a really key pillar of that but also
circular economy
um so I'd just be really interested here
either from how you're approaching
customer conversations or within your
supply chain and procurement how you see
the circular economy playing that key
part and to hit some of your
sustainability goals can I come back to
the question about regulation
um so batteries for example battery
sustainability there are some things
that as you recycle them and you break
them down you can have a component that
you can transport suddenly you break it
down it becomes hazardous waste and it
makes it really really hard then it puts
friction in the cycle for for creating a
circular economy so that's another place
like some help please I'll let someone
else
maybe I could just quickly touch on
circularity we've seen that that's been
one of the from from the work with our
suppliers we've seen that's been one of
the
um really effective decarbonization
levers in terms of
um yeah looking at better circularity
practices in purchasing goods and
services and capital goods specifically
so that's something that yeah is is
really really important okay well we are
slightly over time we have a very brief
networking break uh coming up so I'd
like to thank you all for your questions
thank you all for your contributions uh
Rachel Amy Hannah Alexander
I think
[Applause]
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