Responsible Purchasing: Creating Sustainable Business Value

1
Responsible Purchasing Creating Sustainable
Business Value
Monday, May 8 1045 1200
2

• Scot Case
• 610 779-3770
• scot.case_at_responsiblesourcing.net
• www.responsiblesourcing.net

3
Key Business Trends

• ISO 14000 Certification
• Corporate Social Responsibility Reporting
• Increased transparency
• Influence of NGO community
• Growing stakeholder expectations

4
Triple Bottom Line

• Every business decision has potential impacts on
  profits, people, and the planet.
• Businesses are increasingly focusing on ways to
  maximize profits while also maximizing human
  health, social, and environmental benefits.

5
Emerging Consensus
The major cause of the continued deterioration
of the global environment is the unsustainable
pattern of production and consumption,
particularly in industrialized countries.
United Nations Agenda 21 Report
6
Environmental Concerns

• Mass extinctions
• Deforestation soil erosion
• Air water pollution
• Super bacteria, viruses, and insects
• Dwindling natural resources
• Cancer rates increasing
• Reproductive disorders increasing
• Fisheries collapsing
• Water tables falling
• Climate Change

7
Recent Headline
8
The Momentum is Building

• We are looking at innovative ways to reduce our
  greenhouse gas emissions. This used to be
  controversial, but the science is in and it is
  overwhelming.... We believe every company has a
  responsibility to reduce greenhouse gases as
  quickly as it can.
• Lee Scott, CEO of Wal-Mart
• October 24, 2005

9
Opportunities

• Air travel
• Lodging
• Automobile rental

10
Environmental Impacts

• The largest source of greenhouse gas emissions in
  the United States is the transportation sector,
  which produces 32 of total greenhouse gas
  emissions.

• Automobiles produce 62 of transportation-related
  CO2 emissions and are 20 of the U.S. total.

• Airplanes produce 13 of transportation-related
  CO2 emissions and are 4 of the U.S. total.

11
Environmental Impacts

• A typical jet emits roughly one pound of carbon
  dioxide per passenger mile.
• U.S. business travelers travel approximately 240
  billion passenger miles.

• Offsetting the resulting CO2 emissions would
  require planting 3.2 million acres of trees every
  year.

12
Scots Carbon Emissions

• Reading Philly Atlanta San Fran Philly -
  Reading

1,032 kg
2,374 kg
13
Carbon Emissions

• Washington, DC to New York City
• (Approximately 225 miles)

Source Carbon Neutral Company
14
Carbon Emissions

• Washington, DC to New York City
• (Approximately 225 miles)

Source Climate Care
15
Carbon Footprint Comparison

• San Francisco to New York City
• (Approximately 4,000 miles)

16
Carbon Offset Programs

• Planting trees
• Investing in renewable energy projects
• Improving energy efficiency
• Promoting alternative fuels

17
Lodging Environmental Impacts

• Energy and water use.
• Food.
• Laundry and housecleaning.
• Linens.
• Toiletries and other consumables.

• An average hotel purchases more products in a
  week than 100 families purchase in an entire
  year.

18
Green Lodging

• Green Seal
• Audubon International Green Leaf Program
• California Green Lodging Program
• CERES Green Hotel Initiative

19
CERES Green Hotel Checklist

• Environmental Commitment and Awareness
• Energy Efficiency
• Solid Waste
• Air and Water Quality
• Water Conservation
• Environmental Purchasing
• www.ceres.org

20
Green Seal

• 34 environmental criteria
• 42 certified hotels in 10 states
• Serves as the basis for other local certification
  schemes
• www.greenseal.org

21
Audubon International

• Managed by TerraChoice.
• Rates hotels on a scale of 1 to 4 leaves
• Approximately 100 certified hotels in 15 states
  and Canada
• www.audubonintl.org

22
Green Hotels Association

• Membership Association with members throughout
  the United States.
• Not a standard.
• Provide members with environmental information
  and information they can share with guests.
• Famous for towel rack hangers and sheet changing
  cards.
• www.greenhotels.com

23
Comparing Eco-Labels

• Validity of the standard
• Standard setting process
• Verification process

24
Standard Validity

• Clear and consistent meaning
• Very specific requirements
• Information should be meaningful and verifiable
• Must not conflict with Federal Trade Commission
  Guides for the Use of Environmental Marketing
  Claims.

25
Standard Setting Process

• No conflict of interest
• Lifecycle considerations
• Broad stakeholder participation
• Transparent development process
• Comments publicly available

26
Verification Process

• Self certification
• Self certification with random audits
• Independent third-party certification
• Independent third-party certification with
  on-site audits

27
Automobile Rental Environmental Impacts

• More than two-thirds of U.S. urban air pollution
  is created by vehicle emissions.
• Every gallon of gas burned emits 19 pounds of
  carbon dioxide.

28
Car Rental

• Fuel efficient options
• Alternative fuel options
• Hybrid electric options
• Carbon offset programs

29
Car Rental

• www.avisworld.com

30
Travel Trends

• United Kingdom
• Nike
• Aveda
• PricewaterhouseCoopers
• ATT

31
Most Famous Example

• Nike and Deltas Eco-Class Project
• Partnership between the two companies
• Carbon offset program
• Looks beyond planting trees
• Energy-efficiency programs in Portland, OR, area

32
What You Can Do

• Compile information
• Airfare
• Lodging
• Car rental
• Review current travel policies looking for green
  opportunities
• Prepare contingency plans
• Propose alternatives

33
Resources Carbon Footprint Calculators

• Best Foot Forward www.bestfootforward.com
• Carbon Counter www.carboncounter.org
• Carbon Neutral Company www.carbonneutral.com
• Climate Care www.co2.org
• Redefining Progress www.redefiningprogress.org

34
Resources Green Meetings

• BlueGreen Meetings www.bluegreenmeetings.org
• Convention Industry Council www.conventionindust
  ry.org/projects/green_meetings_report.pdf
• Green Meeting Industry Council
  www.greenmeetings.info
• Meeting Professionals International
  www.mpiweb.org
• Meeting Strategies Worldwide www.meetingstrategi
  esworldwide.com
• U.S. EPA Green Meetings www.epa.gov/oppt/greenme
  etings

35
Resources Green Travel

• Better World Club www.betterworldtravel.com
• New American Dream www.newdream.org/consumer/tra
  vel.php
• Responsible Travel www.responsibletravel.com

36
Questions?

• Scot Case
• scot.case_at_responsiblesourcing.net
• 610 779-3770

37
THANK YOU FOR PARTICPATING! Help Us Serve You in
the Future
Please Complete the Session Evaluation Form
Visit www.ACTE.org in the International Business
Lounge for upcoming events in YOUR region.
Forums PowerTalks Webcasts
AND MARK YOUR CALENDAR FOR OUR NEXT ACTE GLOBAL
EDUCATION CONFERENCE IN BARCELONA
22-24 October 2006