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Supply Chain News Round-Up (Issue 99)

May 28 2008

by
A round-up of news stories about supply chains from April and May.

MORE TO BE DONE ON SUPPLY CHAIN EMISSIONS
The first ever results of the Carbon Disclosure Project’s Supply Chain Leadership Collaboration have discovered that while 58% of responding suppliers are reporting on emissions, only 26% have set greenhouse gas reduction targets. Cadbury Schweppes, Dell, HP, Imperial Tobacco, L’Oreal, Nestle, PepsiCo UK & Ireland, Procter & Gamble, Reckitt Benckiser, Tesco and Unilever all work through the CDP’s Supply Chain Leadership Collaboration. An information request was sent to suppliers encouraging them to report on carbon footprints and climate change relevant information, including greenhouse gas emissions data, emissions reductions targets and climate change strategy.
A total of 144 suppliers from mainly large and medium sized companies responded to the request, with 95% of these never having reported through the CDP. For many this was the first time they had addressed climate change issues. Taxation and emissions limits were identified as potential risks, with 96% citing greenhouse gas regulation.

Contact The Carbon Disclosure Project
& 0207 970 5660
www.cdproject.net

HP RELEASES LIST OF TOP 50 SUPPLIERS
The world’s largest IT company Hewlett Packard has released a list of their top 50 suppliers making it the first in the technology sector to have done so. At the time the company also announced a pilot program to empower workers and advance women’s health issues among its suppliers. Hewlett Packard stated that by releasing the list they hoped to promote transparency and raise standards in the IT industry supply chain, leading to operational changes in supplier labour, health and safety, environmental and ethics practices. The top 50 list represents more than 95% of the company’s procurement expenditures for materials, manufacturing and assembly of its products across the world.

Contact Hewlett Packard headquarters UK 0870 013 0790
Welcome.hp.com

DESIRE FOR GREEN SUPPLY CHAIN
Companies pursuing green supply chain initiatives are being driven by a number of pressures including the desire to be thought a leader in their industry, according to a recent Aberdeen study. Building a Green Supply Chain: Social Responsibility for Fun and Profit, which looked at 320 companies and outlined information from supply chain executives on their green and sustainability plans, discovered 41% of companies that
participated in the study had green supply chain initiatives in place for 1 – 2 years, and 39% had changed parts of their supply chain to be greener. Top of the list of pressures driving a greening of the supply chain was a desire to be thought a leader, followed by the need to control rising fuel and energy costs, the demand to improve competitive advantage and market differentiation, and the need to meet current regulatory requirements.

Contact Aberdeen Group 001 617 723 7890
www.aberdeen.com
UNILEVER TO CERTIFY PALM OIL BY 2015
Unilever has announced it plans to have all its palm oil certified by 2015, ensuring that palm oil used by the company in its products will only come from sustainable sources. The news comes after workers arriving at two Unilever offices last April were confronted by the sight of orange orang-utan suited protesters monkeying about. The protesters, 50 members of Greenpeace, were making a statement about the destruction of the Indonesian rainforest which they claim is being carried out by companies that supply Unilever with palm oil. The rainforest is the natural habitat of the orang-utan, and with trees being cut down to manufacture palm oil more and more orangutans are in danger.
Unilever’s plan is to start using certified palm oil as it becomes available in the second half of 2008. The company will look to have all the palm oil it uses in Europe fully traceable by 2012. Patrick Cescau, Unilever’s CEO, made the announcement at the Prince’s of Wales’ May Day Climate Change Summit in London. “We started work on sustainable palm oil ten years ago by developing and sharing our own guidelines and good practices with growers and suppliers, leading to the setting up of the Roundtable on Sustainable Palm Oil in 2004,” he said. “Now we need to take the next step. Suppliers need to move to meet the criteria, by getting certified both the palm oil from their own plantations and the palm oil they buy from elsewhere.”

Contact Unilever & 0207 822 5252
www.unilever.com