@Risk

Today’s supply chains are more global, more complex –and simply bigger –than ever before. But, does that mean they are better?

Not necessarily, according to Thomas Wailgum at CIO.com.

In his article, Wailgum points out that expanding supply chains make visibility increasingly difficult, and as he says, “ That visibility is key.”

I agree. Most companies today are struggling to keep up with their sprawling global supplier networks. They still need to take the first, fundamental steps to improving visibility and creating a more holistic approach to supplier relationships.  They still need to automate supply chain processes. (more…)

Yesterday, the Department of Defense released its Quadrennial Defense Review, and for the first time, this document –prepared periodically by the Pentagon to update Congress –addressed the threat of global warming, stating that climate change will accelerate instability and conflict around the world.

Specifically, the QDR identifies “crafting a strategic approach to climate and energy” as a key issue requiring attention:

Climate change and energy will play significant roles in the future security environment. The Department is developing policies and plans to manage the effects of climate change on its operating environment, missions, and facilities. The Department already performs environmental stewardship at hundreds of DoD installations throughout the United States, working to meet resource efficiency and sustainability goals. We must continue incorporating geostrategic and operational energy considerations into force planning, requirements development, and acquisition processes. (more…)

Yesterday, the U.S. Securities and Exchange Commission issued ground-breaking guidance that clarifies what publicly-traded companies need to disclose to investors in terms of climate-related material effects on business operations. These ‘effects’ include new emissions management policies, the physical impacts of changing weather, and/or business opportunities associated with the growing clean energy economy.

This new guidance, the first economy-wide climate risk disclosure requirement in the world, comes after more than a dozen investors managing over $1 trillion in assets –plus Ceres and the Environmental Defense Fund –requested formal guidance in a petition originally filed with the Commission in 2007, and then supported by supplemental petitions filed in 2008 and 2009.

“Today’s vote is a clarion call about the vast risks and opportunities climate change poses for US companies and the urgency for integrating them into investment decision making,” says Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk, a network of 80 institutional investors with $8 trillion in collective assets. “The business risks of climate change cannot be ignored. With this guidance investors can make more sound decisions based on better information – and businesses will have a level-playing field with clear standards and expectations for disclosure.”

The SEC decision is the latest in a series of major policy actions over the past year requiring more robust climate risk disclosure across various industry sectors. Those actions include: (more…)

Standardized shipping containers have been in use for more than 50 years, and at this point, they’re a supply chain component most of us just take for granted. However, if you stop for a minute and give it some consideration, you’ll certainly come to realize that standardized containerization has had a dramatic effect on international trade –“making the world smaller and the world economy bigger,” as Marc Levinson says.

But even so, not much has changed with the simple iron box conceived fifty years ago.

Well, not much has changed. . . until now. (more…)

It’s becoming more and more common for me to hear companies talk about water “footprints” and other water concerns, so I’m happy to report that earlier this month, the World Resources Institute (WRI), in partnership with General Electric and Goldman Sachs, launched an initiative to develop a Water Index, a standardized assessment tool  that  I believe will go a long way to help corporations identify and mitigate their water-related risks.

According to WRI, the Index will offer one of the most expansive measures of water risks currently available. It will aggregate nearly 20 weighted factors capturing (more…)