2Sustain

For years now, consumers, investors, advocacy groups and other stakeholders have been pressing for improved transparency in business practices, and in line with appeals like these, California legislators passed the Transparency in Supply Chain Act (SB 657), effective as of January 1, 2012.

Simply put, The Transparency in Supply Chain Act requires retailers and manufacturers to publicly disclose their efforts to eradicate slavery and human trafficking from their supply chains. The law applies to all corporations doing business in California with more than $100 million in worldwide gross receipts, and as a result, it’s estimated to affect some 3,200 companies.

Not surprisingly, the new regulations have been the subject of much debate. (more…)

Tiffany & Co. has launched its first annual web-based Corporate Responsibility Report.

Developed in accordance with the Global Reporting Initiative’s voluntary sustainability reporting framework, the online report includes highlights regarding environmental and social performance, and also provides intriguing insight into the jewelry giant’s standards and operations for the sourcing of precious materials.

For example, Tiffany says that:

• In order to minimize environmental and social risks, gold, silver and platinum used in its workshops are sourced from responsibly mined metal deposits and recycled sources in the US.
• The company has implemented a multiphase assessment process of its supply chain. Accordingly:
  • Vendors are required, when applicable, to complete a self-assessment of their performance against the Tiffany Vendor Code of Conduct.
  • Tiffany performs internal audits of its vendors.
  • Tiffany contracts with a third-party social responsibility auditing firm to provide audits on its suppliers.

In addition: (more…)

Over the years, I’ve seen again and again how collaboration with the supplier network is fundamental to meeting supply chain sustainability goals.

But, we all know that pushing and pulling data between trading partners can be tremendously frustrating. Even though we’ve seen nearly every other aspect of our lives –how we shop, communicate with friends, search for jobs, even look for restaurants and service providers –completely transformed by companies like Facebook, LinkedIn, Yelp, etc., that kind of Web 2.O communication and collaboration has been sorely lacking in supply chain management .  . .

Well, what I mean to say, is that Web 2.O communication and collaboration has been sorely lacking in supply chain management  . . . until now.

This week, I’m thrilled to announce that Aravo has released Aravo Assure^TM, an innovative web-based B2B social network we built to revolutionize the way businesses engage, share data and collaborate.

Using Aravo Assure’s^TM Enterprise 2.0 technology, trading partners are empowered with an industrial-strength collaboration platform and many-to-many communications framework designed to facilitate information exchange, while reducing the expense and administrative burden on both parties. That means Aravo Assure^TM makes it easier than ever before for suppliers and buyers to build robust, collaborative relationships.

Suppliers can share their latest sustainability credentials, environmental performance record, disaster recovery plans, etc. Buyers can update suppliers on risk assessments, sustainability program requirements, etc. It’s an entirely new, configurable B2B collaboration infrastructure that will strengthen supplier relationships –and save companies time and money.

We’re not the only ones who think so. (more…)

The third annual Corporate Responsibility Review from the German sustainable investment rating agency oekom research is out, and the results are somewhat disappointing.

After analyzing the CSR performance of approximately 3,100 companies from throughout the world, oekom research found that only one in six companies currently satisfies the environmental and social requirements necessary to receive “Prime Status” in the ratings. In addition, the research revealed that numerous companies from industrialized nations continue to be involved in violations of human rights and labor rights or environmental scandals.

More specifically: (more…)

More and more businesses are working closely with suppliers to improve their sustainable practices.

And now, results of a new study reveal that this type of collaboration can significantly improve the bottom line.

According to The Carbon Disclosure Project 2011 Supply Chain Report, produced by management consulting firm A.T. Kearney, a whopping 86 percent of the companies surveyed saw commercial benefits from working closely with suppliers to improve performance and mutual return on investment –that’s up from 46 percent in 2009.

PepsiCo, for example, has uncovered more than $60 million in energy savings opportunities and a 16 percent reduction in per-unit energy use across its beverage plants, as a result of its carbon management strategy and proprietary energy assessment tool.

“With a robust strategy and proven benchmarks in place, PepsiCo set out to engage and educate suppliers about potential opportunities to innovate their own operations,” said Walter Todd, Vice-President of Operations, PepsiCo UK & Ireland. “By providing suppliers access to the same energy assessment tools we use in our own operations, we’ve seen mutual return on investment.”

The study, which looked at climate change actions and performance of 57 leading global companies and 1,000 of their suppliers across a broad cross-section of industries, also found that:
(more…)