Managing global supply chains and a company’s carbon footprint - CSR in Europe, Middle East and Africa -
Managing global supply chains and a company’s carbon footprint

I recently read in the newsletter “McKinsey Quarterly” an interesting article about managing global supply chains.

Operations and other senior executives worldwide were asked about their supply chain strategies, goals and the factors that influence the strategies and goals and how their corporations react to these factors. The results speak for themselves: Supply chain risks are increasing and supply chain goals are hard to meet due to product and service complexity, higher energy prices and increased financial volatility.

What grasped my attention was the result that environmental concerns, like climate change seem to have only minor influences on supply chain strategies. Reducing a company’s carbon footprint is rather at the end of supply chain priorities. At the top of the list are cost reduction, improving customer service and bringing products faster to the market.

I guess the reason for this result lies in the complexity of the issue. A research report sponsored by Fujitsu shows that the majority of CIOs surveyed find carbon footprint calculations unclear and confusing. There is a disagreement on which outsourced activities should still be included in the carbon footprint calculations.

I would like to pose the question here of how you deal with the complexity of calculating your company’s carbon footprint. I am looking forward to your comments.

Jeannette Weisschuh, Head of Global Citizenship, HP EMEA


Posted 09-29-2008 3:37 PM by jeanne2007

Comments

Ryan wrote re: Managing global supply chains and a company’s carbon footprint
on 09-29-2008 4:42 PM

Great question- i can't wait to see how people respond...

elaine cohen wrote re: Managing global supply chains and a company’s carbon footprint
on 10-03-2008 4:40 PM

hi, i think we have to take the mystique out of carbon footprinting, ecological footprinting and all these apparently complex issues. Calulating a carbon footpint is not so much complex as requiring discipline, consistency and clarity. True, there are numerous methodologies but what is the most important is to benchmark against oneself, rather than try to adopt a single global benchmark for all corporations. In a global business such as HP, the idea would be to stick to a few core metrics, monitor them regularly at each operating unit, and track improvement. There are global data programs which can assist such as credit360, but these are not essential as long as eveyone knows what to measure. Once discipline is established, the model can be enhanced. regards elaine, csr consultant, HP fan!

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