Posts Tagged ‘suppliers’

IBM Addressing Sustainability of 30,000 Suppliers

Saturday, April 17th, 2010

IBMIBM has a new program to address sustainability and environmental aspects of its nearly 30,000-member-strong supply chain. The program covers suppliers in 90 nations, according to IBM’s Smarter Planet blog.

Starting this year, IBM is asking each of its suppliers to define an environmental management system suitable to their particular business operations, said Wayne Balta, IBM’s vice president of corporate environmental affairs and product safety.

“We’re asking them to establish voluntary environmental goals and measure performance for at least three topics applicable to virtually all businesses: energy conservation, greenhouse gas emissions, and waste management/recycling,” Balta said. “In addition, we’re asking them to publicly disclose their results.”

IBM also will ask suppliers that the requirements be “cascaded down” to any of their suppliers who perform work that is “material to what is ultimately supplied to IBM.”

There will not be a blanket, one-size-fits-all requirement, however, and suppliers will not be publicly graded.

IBM is seeking for chemicals to be properly managed from inception through final use and disposal.

IBM also seeks for products and components to be designed to maximize life-cycle efficiency.

“Take the electronics industry, which supplies IBM with components for our servers,” Balta said. “As an example, we want them to use environmentally preferable materials. However, that doesn’t happen overnight, and a supplier must put a system in place to phase out a particular material or manufacturing process.”

In other news, IBM has opened a $30 million manufacturing facility in

Poughkeepsie, which will produce IBM’s next line of System z mainframe computers and high-end Power Systems servers.

Spokeswoman Laurie Friedman said the facility features several energy saving processes, including:

- A closed loop system that circulates chilled water throughout the facility for air conditioning, systems cooling and other functions.

- A chilled water cooling capacity of 1,700 tons — constantly circulating through pipes, air conditioning, servers and cooling sources. The localized system cooling uses IBM’s “Cool Blue” Rear Door Heat eXchangers, which feature a passive water-cooled door which mounts to the back of computer equipment, cooling exhaust air before it re-enters the data center operating environment.

- Advanced temperature control and lighting, such as high-efficiency fluorescent lighting and occupancy sensors, to further reduce energy consumption.

Source

Environmental Leader

Full article

Wal-Mart Pushes Energy Efficiency on Chinese Suppliers

Saturday, March 6th, 2010

wal-martWal-Mart Stores is working with its Chinese suppliers to address energy efficiency and environmental impacts, reports the Washington Post.

The retailer, fresh off a major announcement last week to cut its supply chain emissions 20 million metric tons by 2015, has more than 10,000 suppliers in China.

In fact, if Wal-Mart were a sovereign nation and not a corporation, it would rank as China’s fifth- or sixth largest market for exported products, according to the Post.

One of Wal-Mart’s suppliers, Lutex, has added energy efficient lighting, boosted HVAC efficiency and reduced packaging, for instance. The company treats four tons of wastewater itself, instead of pumping it into the municipal sewage system.

Wal-Mart is screening all new Chinese suppliers for environmental practices.

The retailer used to audit its 100,000-some global suppliers on its own, but there were so few auditors only about 10,000 of those could be visited.

Now, the company is working with independent auditors that have been recommended by advocacy groups.

As a result of audits for a range of practices, from the environment to labor and human rights, in 2008, Wal-Mart suspended 126 suppliers for a year, according to the Post. It shut out another 35 suppliers on a permanent basis.

Out of 100,000 suppliers that amounts to over a tenth of one percent of suppliers being suspended or shut out.

Source

Environmental Leader

Full article

Is Corporate Responsibility Converging?

Wednesday, May 6th, 2009

journalethics1

Author

S.Chen, P.Bouvain.

Date

May 2009

Region/Country

US/UK/ Australia/Germany

Description

This study aims to move beyond the superficiality of previous analyses of CSR reports by using textual analysis software and a more robust statistical method to more objectively and reliably compare the CSR reports of firms in different industries and countries.
The sample comprises leading companies (based on national stock market indices) from the US, UK, Australia and Germany. The analysis examines whether or not membership of the Global Compact makes a difference to CSR reporting and is overcoming industry and country specific factors that limit standardization.
Businesses from different countries differ significantly in the extent to which they promote CSR and the CSR issues they choose to emphasise in their reports.

Key findings

  • In US company reports, a relatively high importance is placed on community and employee-related issues.
  • In UK company reports employee and community-related issues remain significant, but are related to health and safety issues.
  • The UK, which has a strong consumer awareness of ethical sourcing issues, displays much greater emphasis on customer and supplier-related issues in their CSR reports.
  • In Australian company reports communities are discussed in connection with customers.
  • German company reports are shown to be quite clearly distinct from US, UK, and Australian company reports. While employees remain central, there is a much clearer emphasis on social and environmental issues.
  • In an examination of the relative importance (as measured by frequency of mention in the CSR reports) of each of the six areas of CSR (workers, customers, suppliers, community, environment, and society), countries showed significant differences in the mention of society, community, and customer issues.
  • There was some overlap in the use of the terms ‘social’ and ‘community’ with German companies preferring the use of the word ‘social’ while US, UK, and Australian companies preferring the use of the word ‘community’ to describe similar activities.
  • However, the differences appear to be more than semantic. For instance, one issue that was discussed at length by several German companies, but rarely by companies in the other countries was political dialogue and actively participating in the political process in their home country to bring about social change.
  • Another significant difference between countries was in the use of third-party assurance of CSR reports. Here the UK stood out clearly as the country where third-party assurance was most frequently used and the US as the country where third-party assurance was least frequently used.
  • There were few significant differences among industries. Industry made a significant difference only to frequency of mention of the environment.
  • Multinationality of the company also had a significant effect on mention of the environment.
  • Global Compact membership was shown to make a significant difference in mention of environmental and worker-related issues but not for mention of society, community, suppliers, and customer issues.
  • Global Compact membership was also shown to have a significant effect on the inclusion of measured CSR performance statistics in the report.

More information

Journal of Business Ethics (2009), 87, 299-317

Auto Industry Survey on Green Technologies

Thursday, February 5th, 2009

1848_web_kpmg_auto_survey_2009

Author

KPMG

Date

February 2009

Region/Country

Global

Description

The tenth consecutive annual  KPMG Global Auto Executive Survey has been released by KPMG. 200 executives from vehicle manufacturers and suppliers around the world took part. The survey finds increased interest among auto executives in alternative fuel technologies, with a newfound focus on electric cars.
Respondents consider fuel efficiency improvements, alternative fuel technologies and environmental pressures to be the most influential trends.  This is partly driven by the finding that, for consumers, fuel efficiency is now more important than even product quality.

Key findings

  • Asked to rate the importance of automotive product innovations over the next five years, auto executives expressed strong support for hybrid systems, up to 91% from 79% last year.
  • Electric and battery systems moved to second place, up to 82% from 60%. Fuel cell technology rounded out the top three trends in innovation with 76%.
  • Asked to identify opportunities for the auto industry for the next three years, 21% of respondents said alternative fuel cars, 19% said the exploration of new markets, 17% said fuel efficient cars and 16% said developing new technologies.
  • The majority of executives surveyed expect companies to see little or no profitability, and even losses, over the next five years. A significant decline in market share for US manufacturers is expected as well.
  • In contrast to last year’s survey, respondents now expect bankruptcies to increase, especially among Tier 1 suppliers. Tier 1 suppliers are companies that make products specifically for one of the name-brand car manufacturers.
  • When asked how cost savings would be realized in such an environment, most respondents expect innovation in manufacturing processes and materials technology to be more important than direct overhead cost reductions.
  • While funds for marketing and advertising, as well as for investment in new plants, were expected to drop, more than 90% of respondents expected investment in technological innovation to remain high.

More information

Momentum : KPMG’s Global Auto Executive Survey 2009

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