@Risk

Even though the federal government has failed to pass meaningful climate change and energy legislation, “greening the supply chain” remains a priority for many companies. Businesses are turning to their supply chains to eliminate waste, reduce their environmental impact and diminish risks associated with climate change and resource depletion.

Now, more than ever before, a wide range of stakeholders, including commercial customers, consumers, investors, analysts and others, is demanding transparent information about the lifecycle of products and services.

To help you get your arms around these environmental concerns, Ernst & Young LLP has identified five specific climate change and sustainability risks to supply chain operations. This list includes: (more…)

During the economic turmoil of the past few years, companies have turned to their supply chains in order to maintain profits and respond to consumer demand for lower prices.

As a result, supply chain management (SCM) is now considered a core competency, according to the vast majority of respondents (82 percent) in the 2010 Global Survey of Supply Chain Progress, conducted by Supply Chain Management Review, The Eli Broad Graduate School of Management at Michigan State University and CSC, with assistance from The Council of Supply Chain Management Professionals (CSCMP) and Supply Chain Europe magazine.

The survey was completed by 164 supply chain executives from 20 different industries worldwide, split evenly between manufacturing and service organizations. The results also show that: (more…)

The food supplies of Afghanistan and nine African states are those most at risk and vulnerable to rising costs, based on results of the Food Security Risk Index 2010, released last week by Maplecroft.

The Index uses 12 criteria developed in collaboration with the World Food Programme to evaluate risks to the supply of basic food staples for 163 countries. These criteria include: the nutritional and health status of populations, cereal production and imports, GDP per capita, natural disasters, conflict, and the effectiveness of government.

Following these calculations, Maplecroft rated Afghanistan as least secure in food supplies, while also ranking the African nations of the Democratic Republic of Congo (2), Burundi (3), Eritrea (4), Sudan (5), Ethiopia (6), Angola (7), Liberia (8), Chad (9) and Zimbabwe (10) as “extreme risk.” In all, African nations make up 36 of the 50 nations most at risk in the index. (more…)

Ever since 2002, the US Department of Labor has issued a list of products, by country of origin, that it has determined may be mined, produced or manufactured by forced or indentured child labor. By law, federal contractors who supply products on this “Executive Order 13126” list must certify that they have made a good faith effort to determine whether child labor was used to produce the items.

The current list, updated last month, is available here. It includes a variety of items, such as bamboo, beans and bricks from Burma, toys and cotton from China and cocoa from Nigeria (to name just a few) –many of which have been on the list repeatedly. This year’s list also names India as a country that uses child labor in garment manufacturing, and that has confirmed Indian apparel exporters’ “worst fears,” according to The Economic Times.

The US accounts for 30 percent of India’s apparel exports, estimated at some $10 billion, and as the article reports, appearing on the list poses huge reputation risk to a country that supplies garments to retail giants such as Walmart, GAP, H&M, Diesel, M&S and Levi’s, all of which say their working to abolish child labor. (more…)

Less than one in five companies see biodiversity as an important business issue, and only two out of the world’s largest 100 companies manage it as a strategic risk.

Yet, a new analysis by PricewaterhouseCoopers concludes that no sector or business in the economy will escape unaffected by changes to the availability of environmental resources for business and consumers.

The research, which was conducted as part of a landmark study by the UN Environment Programme (UNEP), puts the economic impact of biodiversity loss at between $2-4.5 trillion annually and says this impact will be felt in product pricing, availability of products and financing, and supply chain disruptions for consumers, business and government. For example, the study lists water used in food and drink production, timber for packaging, furniture and paper, productive land for fruit and vegetables, and fibers for clothes, as just some of the biodiversity and ecosystem ‘services’ whose economic value and protection are currently at risk. (more…)