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Carbon Reduction in the Supply Chain

Wisconsin Business Alliance October 3, 2014 Matt Frank Murphy Desmond, S.C. Carbon Reduction in the Supply Chain. Wisconsin Companies produce and compete in a global economy. Many businesses are part of a regional, national or global supply chain.

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Carbon Reduction in the Supply Chain

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  1. Wisconsin Business Alliance October 3, 2014 Matt Frank Murphy Desmond, S.C. Carbon Reduction in the Supply Chain

  2. Wisconsin Companies produce and compete in a global economy. • Many businesses are part of a regional, national or global supply chain. • Mandatory and Voluntary Carbon reduction efforts are having an impact on large corporations and their suppliers.

  3. Regional, National and International Regulation of Carbon • State Renewable Portfolio Standards • Regional Greenhouse Gas Initiative • Western Climate Initiative • European Union Cap and Trade • Securities and Exchange Commission climate change impacts disclosure rule • EPA rules on car and truck manufacturers • EPA Clean Power Initiative

  4. Greenhouse Gas Emissions Reporting and Reduction • Both carbon reduction and broader sustainability initiatives • Global Reporting Initiative: In 2011, 53% of the Standard and Poor’s 500 were making sustainability disclosures, including carbon. • Greenhouse Gas Protocol • Carbon Disclosure Project • Climate Registry • United States Green Building Council – LEED standards • Greenhouse Gas Accounting Standards – World Resources Institute • Center for Climate and Energy Solutions

  5. Fortune 500 Companies • Kellogs, Walmart, Procter and Gamble, Hewlett Packard, Dell, Apple, Ford, Bank of America, Pepsi, McDonalds, Ikea Nike, General Motors • Mitigate risks, decrease costs, differentiate from competition, increase growth • Create business value while protecting the environment

  6. Areas of Focus • Consumer packaging • Transportation • Product design • Process modifications • Life cycle analysis • Land use (especially forestry and agriculture) • Green building • Carbon offsets and carbon credit trading

  7. Opportunities and Resourcesfor Small- to Medium-Size Businesses • Software for measuring and reporting carbon emissions • Sustainability consultants • Wisconsin Manufacturing Extension Partnership – Profitable Sustainability Initiative • Cool Choices • Green Masters • Green Tier • Other Wisconsin businesses • Wisconsin Sustainable Business Council

  8. Some Legal Issues forSmall- to Medium-Size Businesses • Changes in contractual relationships with suppliers and customers • For entities subject to environmental regulation: Possible changes in permits • Renewable energy interconnection agreements with utilities • Marketing claims: Federal Trade Commission guidelines

  9. References • Risky Business- The Economic Risk of Climate Change in the United States. 2014. http://riskybusiness.org/report/overview/executive-summary • “Supply Chain Energy Efficiency: Engaging Small and Medium Entities in Global Production Systems. 2013. University of Minnesota- Northstar Initiative for Sustainable Enterprise. http://discover.umn.edu/news/environment/new-pilot-program-takes-aim-supply-chain-carbon • Walmart Supplier Sustainability Assessment. http://isites.harvard.edu/fs/docs/icb.topic744501.files/WalmartSupplier%20Assessment.pdf • “Managing Supply Chain Greenhouse Gas Emissions- Lessons Learned for the Road Ahead.” 2010. Environmental Protection Agency. http://www.epa.gov/climateleadership/documents/resources/managing-supplychain-emis2010.pdf • “Mastering Carbon Management- Balancing Trade-offs to optimize supply chain efficiencies.” 2008. IBM Global Business Services. http://www-05.ibm.com/de/automotive/downloads/mastering-carbon-management.pdf • “A Case for Supply Chain Carbon Management in the Consumer Packaged Goods Industry.” 2012. Center for Responsible Business. http://responsiblebusiness.haas.berkeley.edu/CRB_ResearchReport_FINAL.pdf • Sustainable Supply Chain Foundation. http://www.sustainable-scf.org/index.html • “A Corporate Accounting and Reporting Standard”. Greenhouse Gas Protocol. World Resources Institute. • Green Business Guide. Small Business Administration. http://www.sba.gov/green-business-guide • Federal Trade Commission Revised “Green Guides.” 2012. http://www.ftc.gov/news-events/press-releases/2012/10/ftc-issues-revised-green-guides

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