Sustainability: Good Planets Are Hard to Buy!

1. Sustainability:Good Planets Are Hard to Buy! CAUBO 2008 Work Shop program Presentation by: Larry Berglund, CPP, MBA The University of British Columbia

2. Larry Berglund, CPP, MBA Work experience • Forest Industry • Public Health Care • Municipal Government • University Operations Education • CPP • MBA Seminars/workshops • Better Ways to Better Deals • Strategic Management • Sustainable Supply Chain Practices • Leadership and Professionalism Teaching • BCIT; UCFV; APICS; PMAC; KUC Published papers • 2004 McMasters University - price index model paper • 2005 McMasters University - Sustainable Supply Chain Management Practices • 2006 City of Granston Case – Purchasing and Supply Management, 13th Edition • 2007 Vancouver the Ethical City: Cities and Ethical Purchasing as Means to Address Social Justice (co-author) Urban Studies Association Conference, Seattle, Wash

3. Work shop outcomes: • Objective: Share current supply chain information for strategic decision-making involving sustainability • Purpose: (1) Provide a balance of perspectives on the issues which affect sustainability for buyers, sellers, and stakeholders (2) Consider the challenges to define sustainability and corporate social responsibility (3) Provide practical ideas for taking actions which include social values

4. Introductions Overview of Sustainability The Links in the Chain Case Definition of sustainability Principles and standards Resistance to sustainability Reasons for sustainability Challenges Trends Leading practices Market references, resources and tools Program

5. Philosophical Imperative • Social contract theory • Social justice theory • Rights theory • Deontological theory

6. The Links in the Chain CaseReview the case individuallyIdentify key issuesWithin small groups, decide what steps Bryan could take to respond to Tom’s request.

7. Definitions of Sustainability Group Exercise: What is the definition of sustainability?

8. Sustainability: Economics + Environment + Expectations of society = Sustainability

9. The Role of Government • Externalities • Monitoring • Controlling • Trends • Incentives

10. The Role of NGOs • Who are they? • What do they do? • How can you work with them?

11. Who are the NGOs? • MSN – Maquila Solidarity Network • Oxfam • Amnesty International • Green Peace

12. Principles and Standards • The Ceres Principles • The Hannover Principles • The Equator Principles • LEED certification • ILO/ UN Declaration of Human Rights

13. Protection of the biosphere Sustainable use of natural resources Reduction and disposal of wastes Energy conservation Risk reduction Safe products and services Environmental restoration Informing the public Management commitment Audits and reports Ceres Principles

14. Rights of humanity and nature to co-exist Interdependence between humans and nature Respect relationships between spirit and matter Responsibility for consequences of design Safe objects of long-term value Eliminate the concept of waste Rely on natural energy flows Understand the limitations of design Share knowledge for constant improvement Hannover Principles

15. Equator Principles (17) • Used to screen projects with international investment involving the World Bank • Environmental, social and economic risks • Generally within emerging economies • Bank of America, HSBC, ING Group, JPMorgan Chase, Manulife, Royal Bank of Canada, Scotia Bank

16. LEED Certification • Materials should: • Have zero emissions • Be deconstructable • Be renewable • Be recyclable • Contain recycled content • Be reusable

17. International Labour Organization Conventions • Freedom of association • Right to collective bargaining • Elimination of forced and compulsory labour • Abolition of child labour • Elimination of discrimination

18. UBC Supply ManagementPrinciples of Sustainability • Leadership • Social inclusivity • Environmental stewardship • Accountability

19. Resistance to Sustainability Group Exercise: Why WOULDN’T business engage in sustainability?

20. Reasons for Resistance to Sustainability • - • - • - • - • - • - • - • - • - • - • - • -

21. - - - - - - - - - - - - - - - - - - - - - - Managerial Barriers to Sustainability Practices

22. Reasons For Sustainability Group Exercise: Why SHOULD business engage in sustainability?

23. Reasons For Sustainability • - • - • - • - • - • - • - • - • - • - • - • -

24. Challenges/Opportunities for Supply Professionals Group Exercise: What challenges or opportunities are presented to decision-makers with sustainability?

25. Challenges/Opportunities for Supply Professionals • - • - • - • - • - • - • - • -

26. Challenges/Opportunities for Suppliers Group Exercise: What challenges or opportunities are presented to suppliers with corporate social responsibility?

27. Challenges/Opportunities for Suppliers • - • - • - • - • - • - • - • -

28. Caveats for Suppliers • - • - • - • - • - • - • -

29. H&M Clothing, (Sweden) Procter & Gamble Dofasco Steel The University of BC Placer Dome BHP Billiton Diamonds (Ekati) Vancouver City Savings Credit Union The University of Victoria Minas Basin Pulp and Paper Interface Companies Mountain Equipment Co-op Starbucks Protocol Environmental Solutions Ciba-Geigy (Switzerland) Hudson's Bay Company Dow Agro Sciences Cargill City of Vancouver City of Whistler Leading Organizations….

30. Brain Storming Ideas Group Exercise: What can we do to demonstrate sustainability in the supply chain?

31. What can We do in Supply Chain Management? The influence of the affluent factor Be: innovative not isomorphistic Be: passionate not passive Be: proactive not pessimistic Be: professional and pragmatic

32. Be Professional, Pragmatic, and Prioritize • - • - • - • - • - • - • - • - • - • - • -

33. Current Leading Practices • - • - • - • - • - • - • - • - • - • -

34. - - - - - - - - - - - - - Trends

35. Memo to Business: Society cares that you do make a Profit and and how you make that Profit.

36. Remember…….. Good Planets are Hard to Buy!