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PRME Webinar on Supply Chain Sustainability 7 June 2013 – 10:00 AM EDT.

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Presentation on theme: "PRME Webinar on Supply Chain Sustainability 7 June 2013 – 10:00 AM EDT."— Presentation transcript:

1 PRME Webinar on Supply Chain Sustainability 7 June 2013 – 10:00 AM EDT

2 Technical Difficulties: If you have technical issues, please let us know by typing a message in the Questions pane (A). You can raise your hand (B) if we do not respond. Q&A: We will be taking questions on content at the end, but you can send them to us throughout the webinar by using the Questions pane (A). Please specify to whom the question should be directed. A B Questions

3 Agenda Introduction to PRME Jonas Haertle, Head, PRME Secretariat Introduction to Supply Chain Sustainability Anita Househam, Issue Manager, Supply Chain Sustainability, UN Global Compact Members of the Advisory Group on Supply Chain Sustainability TRACEABILITY: Peter Perrault, Lead Consultant, Infosys Sustainability ANTI-CORRUPTION: Cecilie Hersleth, Legal Manager, Business Assurance, Telenor Proposal for Collaboration Mads Øvlisen, Chair, UNGC Advisory Group on Supply Chain Sustainability Q & A: Remaining Time

4 Principles for Responsible Management Education (PRME) Launched in 2007, UN-backed initiative to change the curriculum, research and learning methods of management education based on UN Global Compact/ Corporate Sustainability approach Leading global platform for open dialogue and collaborative learning on responsible management and leadership education The Six Principles of PRME are inspired by internationally accepted values and seek to establish a process of continuous improvement among institutions of management education 2012/2013: Introduction of PRME Regional Chapters and PRME Champions group 495+ business schools/ management-related academic institutions and universities from 80+ countries

5 PRME Working Group Projects & Reports Anti-Corruption in Curriculum Change Poverty, a Challenge for Management Education Gender Equality

6 UN Global Compact - Supply Chain Sustainability 3 rd Advisory Group Meeting Mexico City, Mexico 2-4 March 2011 Supply Chain Sustainability - An Introduction 7 June 2013 Anita Househam, Issue Manager, Supply Chain Sustainability

7 Purpose – Bringing it Together

8 The UN Global Compact Advisory Group on Supply Chain Sustainability A.P. Moller—Maersk (Denmark) ArcelorMittal (Global) Boyner Holding (Turkey) BSR (Global) Cemex (Mexico) Cisco Systems Inc. (USA) Det Norske Veritas AS (DNV) (Norway) Ford Motor Company (USA) Hitachi, Ltd. (Japan) Inditex S.A. (Spain) Infosys Technologies Ltd (India) Innovation Norway (Norway) Mahindra & Mahindra Limited (India) Nestlé S.A. (Switzerland) Nokia (Finland) Reed Elsevier Group plc (UK) Restaurantes TOKS (Mexico) Safaricom Limited (Kenya) Sedex (UK) Social Accountability International (SAI) (Global) Arche Advisors (USA) Telenor Group (Norway) Volkswagen Aktiengesellschaft (Germany)

9 Tools and Resources Supply Chain Sustainability - A Practical Guide for Continuous Improvement  Launched June 2010  Practical guidance to develop a sustainable supply chain programme  Features numerous good corporate practices and other initiatives  Based on the values and principles of the UN Global Compact  2011: Developed SME Quick Guide: Supply Chain Sustainability – A Practical Guide for Continuous Improvement for Small and Medium Enterprises

10 Tools and Resources Website: Sustainable Supply Chains – Resources and Practices  ‘One-stop-shop’ for business  Includes information about sustainable supply chain: Initiatives Resources company practices  Articles searchable by issue area, sector, region and practice category  Register and submit articles

11 Tools and Resources Quick Self-Assessment & Learning Tool  Launched June 2012  Identify strengths and areas of improvement  Benchmark your company’s approach  Scorecard with benchmarking results and recommendations  References to additional resources, company practices and initiatives http://supply-chain-self-

12 Additional initiatives/work areas  Promote Good Practices Webinar Series Good Practice Notes (in collaboration with HRWG) Note on Occupational Health & Safety (in collaboration with Better Work/ILO/IFC) Engagement with Global Compact Local Networks  Issue Specific Activities Practical Guide on Supply Chain Traceability – initial stages Stand Together Against Corruption –A Practical Guide – final stages Occupational Health & Safety - emerging

13 Peter Perrault Lead Consultant, Infosys Sustainability An Overview of the Traceability Task Force

14 Process 1.Research & Consolidate Resources 2.Analyze & Define Key Issues 3.Survey AG and Conduct In-Depth Interviews 4.Incorporate Findings and Revise Scope 5.Finalize & Present to AG 6.Phase II Recommendations

15 Inputs from BSR, Infosys, Nestlé, Sedex, and UNGC ; More than 40 sources covering 20+ sectors Early findings: Overarching categories: Human Rights, Labor, Anti-Corruption, Environment – strong interrelationship among issues Prioritization and approach are key questions for firms Highly driven by industry, sector or commodity; a/o by phase-specific activities Existing policies/regulations may assist in reporting guidelines Broader goal to enhance transparency and collaboration to understand impacts – traceability doesn’t inherently mean physical tracing Existing definitions: ISO 8402 (ISO 9000) Existing Standards & Initiatives Include: Review of Completed Research Forestry Stewardship Council (FSC) Better Cotton Initiative (BCI) GS1 Traceability Standard The Produce Traceability Initiative (PTI) Can-TraceUTZ CertifiedFair Trade Certified Marine Stewardship Council

16 Combined Bar Chart Ranking Issues of Importance for Respondents’ Company (12 respondents) Survey Findings

17 WoodCocoaMinerals Companies Interviewed: IKEA Staples Tetra Pak B&Q Combination of strong legal requirements & strong global, collaborative traceability scheme makes traceability a worthwhile strategy Timber traceability is well- established, and the companies interviewed have been engaged in this process for a long time Companies Interviewed: Nestlé Mondeléz (TBC) Mars (TBC) Companies aim to: Secure supply/improve farmer practices Address key labor issues – child labor and slavery Alternative strategies: direct purchase of cocoa invest in farm communities support collaborative programs, e.g. – ICI; focus on farm level capacity building and training Leverage existing labeling schemes, e.g. – Fair Trade Companies Interviewed: Ford Volkswagen Hitachi Telenor Dodd-Frank and potential European legislation affect companies’ need to ensure their products are conflict-free Highly visible topic with much media attention EICC/GeSI Conflict-Free Smelter Program currently the most established program; does not affect all sectors Firms are early in the development process Interview Findings by Commodity

18 Commodity being traced is of significant value to the business and for which the business is known IKEA and wood – they are ‘the biggest buyer of wood in the world’ 1) Value of the Commodity to the Business Company is subject to legal requirements e.g. - The Lacey Act [wood]; The Dodd-Frank Act [minerals] There is often an existing, recognized, collaborative global initiative companies can join (FSC, EICC/GeSI CFS program) 2) Legal Requirements Operational efficiencies/benefits make traceability useful and cost effective over time, such as: Deeper understanding of the supply chain Ability to identify more/better sources of product to avoid disruptions Reputational benefit 3) Operational Benefits Interview Findings: Where Traceability Works

19 Brand/ Company First tier/direct suppliers Second tier and below; indirect suppliers Raw material source (Farms, forests, mines) Strong internal policy & collaborative scheme Buyers must adhere to policy Top management support Integrated procurement processes Resources dedicated to implementation Must certify to required scheme Must document proven chain of custody Subject to audits Certified as part of chain of custody Subject to random audits by relevant certification bodies Certify source/site of raw material Subject to regular audits Standard/certification for: Source Chain of custody Processes of direct suppliers and brand/ company Conduct audits Provide Data Store Collaborative Global Scheme Shaping an Effective Traceability Program

20 3. How to Pursue Traceability How do you put in place a traceability program? What resources are available – general or commodity-specific? 2. Assessment of Options What options are available? When is traceability the appropriate strategy? 1. Diagnostic Tool What is my organization trying to achieve? What do our stakeholders want/need? Phase II Recommendation: Develop 3 Part Guide

21 Anti-Corruption – A Practical Guide PRME Webinar on Supply Chain Sustainability, 7.6.2013 Cecilie Hersleth, Legal Manager, Business Assurance

22 1. Introduction - Aim of our work Cooperation Best practise sharing Networking Developing useful tools and guiding documents 22

23 UNGC Task force A practical guide with operational guidance on managing anti-corruption, focused specifically on the supply chain Short, basic and inspiring Supplementary to other UNGC documents Preventive day to day work 23

24 What does the new Guide include? Examples of corruption in the supply chain Main elements of an efficient anti-corruption program Preventive corruption activities towards suppliers Company examples References to other UNGC documents 24

25 Thank you

26 Proposal for Collaboration  Incorporating the sustainability agenda in the supply chain management curriculum  Brief note for academics  Platform for existing tools, curricula, publications etc  Template workshops for academics  Understanding supply chain sustainability, impacts and needs  Analysis of GC participants on management of SCS  Case Studies  Research on potential impacts of existing tools/resources  Contribution to existing activities of the Advisory Group  Analysis of Traceability and social auditing systems  Case studies

27 Thank You Thank you for joining us today. Presentation slides and a recording of the webinar will be available on the PRME website. If you have any additional questions, please contact: Anita Househam: (UNGC) Magdalena Thurig: (PRME)

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