The Supply Chain Sustainability Forum at Sustainability Live 2023

Summary

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

00:00

😀 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。

05:02

🔍 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。

10:02

🌐 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。

15:03

🤝 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。

20:05

📈 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。

25:05

🌿 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。

30:05

📉 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。

35:06

🤔 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。

40:06

🌱 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。

Keywords

💡供应链可持续性

供应链可持续性指的是在供应链管理过程中考虑环境、社会和经济三个方面的长期发展和效益。在视频中，讨论了如何确保供应商达到一定的环保和社会责任标准，这是供应链可持续性的关键组成部分。

💡技术选项

技术选项涉及使用现代技术手段来提高供应链的可持续性。视频中提到，尽管技术理论上可以简化流程，但实际上需要公司采取行动来确保供应商达到标准，例如通过数字化工具来收集信息和与供应商进行沟通。

💡标准设定

标准设定是指企业在供应链管理中制定的一系列规范和期望，以确保供应商遵守。视频中强调了设定最低标准、政策以及与立法相当的重要性，这有助于企业维持其供应链的质量和可持续性。

💡数据收集

数据收集是供应链可持续性中的一个重要环节，它涉及收集关于供应商表现和供应链影响的信息。视频中提到，数据收集是确保能够监控和提升供应链表现的基础工作，有助于企业做出基于事实的决策。

💡供应商参与

供应商参与指的是企业与其供应商之间的互动和合作，以提升整个供应链的可持续性。视频中的讨论者强调了与供应商进行对话的重要性，以及如何通过教育和支持帮助供应商提高其可持续性表现。

💡风险管理

风险管理涉及识别、评估和采取措施减轻供应链中的潜在风险。视频中提到，气候变化对供应链的影响是一个重要风险，需要通过教育和准备来管理，以确保供应链的稳定性和可持续性。

💡教育和培训

教育和培训是提升供应链可持续性的关键，它涉及到提高公司内部员工和供应链参与者的知识水平和意识。视频中讨论了如何通过教育和培训来提高对可持续性问题的理解，并将其整合到业务决策中。

💡成本效益分析

成本效益分析是指在考虑成本的同时，评估一项投资或决策的长期价值和效益。在视频中，讨论了如何在考虑成本节约的同时，平衡对减少碳排放和提升可持续性的需求。

💡碳足迹

碳足迹是指个人、组织、事件或产品在其生命周期中直接或间接产生的温室气体总排放量。视频中提到了如何通过减少碳足迹来提升供应链的可持续性，包括通过使用可再生能源和提高能效。

💡循环经济

循环经济是一种经济系统，旨在通过重新设计、回收、再利用和减少资源输入来消除浪费和污染。视频中提到了循环经济在实现可持续性目标中的作用，特别是在采购商品和服务时考虑更好的循环性实践。

💡合规性

合规性指的是遵守法规、标准或协议的过程。视频中讨论了合规性在供应链可持续性中的重要性，包括如何通过合规性来确保供应商达到公司设定的环保和社会标准。

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]