Download Carbon Reduction in the Supply Chain

Wisconsin Business Alliance
October 3, 2014
Matt Frank
Murphy Desmond, S.C.
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Wisconsin Companies produce and compete
in a global economy.
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Many businesses are part of a regional,
national or global supply chain.
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Mandatory and Voluntary Carbon reduction
efforts are having an impact on large
corporations and their suppliers.
Regional, National and
International Regulation of
Carbon
State Renewable Portfolio Standards
 Regional Greenhouse Gas Initiative
 Western Climate Initiative
 European Union Cap and Trade
 Securities and Exchange Commission
climate change impacts disclosure rule
 EPA rules on car and truck manufacturers
 EPA Clean Power Initiative
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Greenhouse Gas Emissions
Reporting and Reduction
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Both carbon reduction and broader sustainability
initiatives
 Global Reporting Initiative: In 2011, 53% of the Standard
and Poor’s 500 were making sustainability disclosures,
including carbon.
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Greenhouse Gas Protocol
Carbon Disclosure Project
Climate Registry
United States Green Building Council – LEED
standards
Greenhouse Gas Accounting Standards – World
Resources Institute
Center for Climate and Energy Solutions
Fortune 500 Companies
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Kellogs, Walmart, Procter and Gamble,
Hewlett Packard, Dell, Apple, Ford, Bank of
America, Pepsi, McDonalds, Ikea Nike,
General Motors
 Mitigate risks, decrease costs, differentiate from
competition, increase growth
 Create business value while protecting the
environment
Areas of Focus
Consumer packaging
 Transportation
 Product design
 Process modifications
 Life cycle analysis
 Land use (especially forestry and
agriculture)
 Green building
 Carbon offsets and carbon credit trading
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Opportunities and Resources
for Small- to Medium-Size
Businesses
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Software for measuring and reporting carbon
emissions
Sustainability consultants
Wisconsin Manufacturing Extension Partnership
– Profitable Sustainability Initiative
Cool Choices
Green Masters
Green Tier
Other Wisconsin businesses
Wisconsin Sustainable Business Council
Some Legal Issues for
Small- to Medium-Size
Businesses
Changes in contractual relationships with
suppliers and customers
 For entities subject to environmental
regulation: Possible changes in permits
 Renewable energy interconnection
agreements with utilities
 Marketing claims: Federal Trade
Commission guidelines
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References
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Risky Business- The Economic Risk of Climate Change in the United States. 2014.
http://riskybusiness.org/report/overview/executive-summary
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“Supply Chain Energy Efficiency: Engaging Small and Medium Entities in Global Production Systems. 2013. University of
Minnesota- Northstar Initiative for Sustainable Enterprise. http://discover.umn.edu/news/environment/new-pilot-programtakes-aim-supply-chain-carbon
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Walmart Supplier Sustainability Assessment.
http://isites.harvard.edu/fs/docs/icb.topic744501.files/WalmartSupplier%20Assessment.pdf
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“Managing Supply Chain Greenhouse Gas Emissions- Lessons Learned for the Road Ahead.” 2010. Environmental
Protection Agency. http://www.epa.gov/climateleadership/documents/resources/managing-supplychain-emis2010.pdf
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“Mastering Carbon Management- Balancing Trade-offs to optimize supply chain efficiencies.” 2008. IBM Global Business
Services. http://www-05.ibm.com/de/automotive/downloads/mastering-carbon-management.pdf
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“A Case for Supply Chain Carbon Management in the Consumer Packaged Goods Industry.” 2012. Center for
Responsible Business. http://responsiblebusiness.haas.berkeley.edu/CRB_ResearchReport_FINAL.pdf
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Sustainable Supply Chain Foundation. http://www.sustainable-scf.org/index.html
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“A Corporate Accounting and Reporting Standard”. Greenhouse Gas Protocol. World Resources Institute.
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Green Business Guide. Small Business Administration. http://www.sba.gov/green-business-guide
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Federal Trade Commission Revised “Green Guides.” 2012. http://www.ftc.gov/news-events/press-releases/2012/10/ftcissues-revised-green-guides