Page 48 - The European Business Review

Supply Chain

The Carbon Disclosure found that none adequately addressed References
1. United Nations Global Compact (2017). Online: https://
24
Project recently found that the broader sustainability context. www.unglobalcompact.org/
Institutionalising sustainability in 2. PUMA (2011). 380$·V HQYLURQPHQWDO SURÀW DQG ORVV DFFRXQW
for the year ended 31 December 2010. Online: http://about.
only 22% of the companies supply chains requires engaging many SXPD FRP GDPÀOHV GHIDXOW VXVWDLQDELOLW\ HQYLURQPHQW
reporting to its supply chain more companies. Whether the focus is e-p-l/EPL080212final-3cdfc1bdca0821c6ec1cf4b89935
bb5f.pdf
on GHG emissions or other economic, 3. Ahi, P. & Searcy, C. (2013). A comparative literature
programme are actively environmental, and social issues, DQDO\VLV RI GHÀQLWLRQV RI JUHHQ DQG VXVWDLQDEOH VXSSO\
chain management. Journal of Cleaner Production 52:329-341
working with their suppliers companies must link their efforts to 4. Global Reporting Initiative (2016). Online: https://www.
globalreporting.org/standards
to reduce carbon emissions. what nature and society can support. 5. Thomas, M. & McElroy, M. (2016). The MultiCapital
Scorecard: Rethinking organizational performance. White River

Junction, VT: Chelsea Green Publishing
Conclusion 6. Searcy, C. (2016). What makes a supply chain sustainable?
MIT Sloan Management Review, Online: http://sloanreview.
Sustainability requires that supply mit.edu/article/what-makes-a-supply-chain-sustainable/
Walmart has long focused on the chains operate within economic, envi- 7. Montabon, F., Pagell, M. & Wu, Z. (2016). Making
sustainability sustainable. Journal of Supply Chain Management
sustainability of its supply chain. In ronmental, and social thresholds. 52(2):11-27
8. Steffen, W. et al. (2015). Planetary boundaries: Guiding
April 2017, it announced Project However, supply chain sustainability is human development on a changing planet. Science
Gigaton, which aims to reduce the not directly observable. There is room 347(6223):736
9. Raworth, K. (2017). Doughnut economics: Seven ways to think
company’s supply chain GHG emis- for reasonable debate on what impacts like a 21 century economist. White River Junction, VT: Chelsea
st
22
sions by 1 gigaton by 2030. Along with should receive priority, how perfor- Green Publishing
10. United Nations (2015). Online: http://www.un.org/
Mars and HPE, Walmart is a member of mance should be linked to thresholds, sustainabledevelopment/sustainable-development-goals/
11. McElroy, M. (2015). Science- vs. context-based metrics.
the SBTi and has committed to setting and, ultimately, what should be done. Sustainable Brands, Online: http://www.sustainablebrands.
its GHG emissions targets in line with %XW GLIÀFXOW DV WKHVH TXHVWLRQV DUH com/news_and_views/new_metrics/mark_mcelroy/
science-_vs_context-based_metrics_%E2%80%93_
climate science. Walmart has also estab- none are reasons to delay action. what%E2%80%99s_difference
lished a number of other sustainability No sustainable supply chain initia- 12. CDP (2017). Missing link: Harnessing the power of purchasing for
a sustainable future. Online: https://b8f65cb373b1b7b15feb-
goals, such as reducing its waste to zero tive is likely to be perfect, much less on c70d8ead6ced550b4d987d7c03fcdd1d.ssl.cf3.rackcdn.
com/cms/reports/documents/000/001/500/original/
throughout its supply chain by 2025. WKH ÀUVW WU\ 7KH IRFXV ZLOO DOVR LQHYL- CDP-Supply-chain-report-2017.pdf?1490272235
All three of these companies, and tably change over time. Thresholds, 13. CDP (2016). Technical note on science-based targets:
CDP climate change 2016. Online: https://www.cdp.net/
many others, have begun taking action for example, will need to be updated as Documents/Guidance/2016/CDP-technical-note-science-
EDVHG RQ ZKDW VFLHQWLÀF HYLGHQFH LQGL- science, societal expectations, and the based-targets.pdf
14. Science Based Targets Initiative (2017). Online: http://
cates is required. Importantly, however, supply chain itself evolve. Metrics and sciencebasedtargets.org/
15. CEO Water Mandate (2017). Exploring the case for
companies do not have to address DFWLRQ SODQV DUH DOVR ÀQLWH corporate context-based water targets. Online: https://www.
sustainability in their supply chains Companies will need to stay current FHRZDWHUPDQGDWH RUJ ÀOHV FRQWH[W EDVHG WDUJHWV SGI
6KHIÀ < 7KH WHDUV LQ WKH GHHS WLHUV The European
alone. Multi-stakeholder initiatives, on the latest research, look to others for Business Review November-December 2015, 57-62
17. GHG Protocol (2011). Corporate value chain (Scope
such as the SBTi and the CEO Water inspiration, and collaborate widely to 3) accounting and reporting standard. Online: http://www.
Mandate, show how they can work VROYH GLIÀFXOW SUREOHPV 0RVW LPSRU- ghgprotocol.org/sites/default/files/ghgp/standards/
Corporate-Value-Chain-Accounting-Reporing-
with other companies, civil society, and tantly, though, they need to get started Standard_041613_2.pdf
other stakeholders to develop credible with linking their supply chains to the 18. Electronic Industry Citizenship Coalition (2014).
Online: http://www.responsiblebusiness.org/media/docs/
DSSURDFKHV WR FKDOOHQJLQJ VFLHQWLÀF DQG wider world. EICCCodeofConduct5_English.pdf
19. Mars (2017). Online: http://www.mars.com/global/
ethical problems. sustainable-in-a-generation
Despite the many ongoing efforts, About the Author 20. WRI & Mars (2016). From doing better to doing
enough: Anchoring corporate sustainability targets in science.
however, there is much more to do. The Cory Searcy is a Professor Online: https://www.wri.org/sites/default/files/
From_Doing_Better_to_Doing_Enough_Anchoring_
CDP recently found that only 22% of of Industrial Engineering Corporate_Sustainability_Targets_in_Science.pdf
the companies reporting to its supply and Environmental Applied 21. HPE (2017). Online: https://news.hpe.com/
KSH ODXQFKHV ZRUOGV ÀUVW VXSSO\ FKDLQ SURJUDP EDVHG RQ
chain programme are actively working Science & Management climate-science/
with their suppliers to reduce carbon at Ryerson University. He 22. Walmart (2017). Online: https://news.walmart.
com/2017/04/19/walmart-launches-project-gigaton-to-
12
emissions. A study of 40,000 corporate currently serves as the Associate Dean, reduce-emissions-in-companys-supply-chain
23. Bjorn, A., Bey, N., Georg, S., Ropke, I., & Hauschild,
responsibility reports found that just 5% Programs in Ryerson’s Yeates School of 0= ,V (DUWK UHFRJQL]HG DV D ÀQLWH V\VWHP LQ
23
referred to ecological limits. Another Graduate Studies. He is also a section corporate sustainability reporting? Journal of Cleaner
Production 163:106-117
study of over 2,500 metrics used to editor for corporate sustainability at the 24. Ahi, P. & Searcy, C. (2015). An analysis of metrics used
to measure performance in green and sustainable supply
measure performance in supply chains Journal of Business Ethics. chains. Journal of Cleaner Production 86:360-377
48 The European Business Review January - February 2018