the economic case for sustainable practices...the economic case for sustainable practices session...
TRANSCRIPT
The Economic Case for Sustainable PracticesSession AB
Session Outline
• Introduction of topic, moderator & panelist
• Panel Discussion
• Audience Q&A
The Economic Case for Sustainable Practices
• Environmental Sustainability
• Social Sustainability
• Talent SustainabilityWHY DO
COMPANIES CARE?
Brief Biography
• ~ 20 years of supply chain and procurement leadership experience across multiple industries. • 2015 – current: The Hershey Company• 2004-2015: PepsiCo Inc.• 1999-2004: United Technologies Corp.
• MBA University of San Diego
• Sustainable Sourcing Experience• Lead the Hershey sustainable sourcing team
Moderator: Susanna X. Zhu
Company: The Hershey CompanyRole: Chief Procurement Officer
Photo
HERSHEY’S SUSTAINABILITY RECOGNITIONS
➢ General Engineering / Foreign Area Studies in Far East(Chinese) degree from U.S. Military Academy
➢ International MBA from Baldwin-Wallace College
➢ SCM Executive Program from Michigan State University
➢ Board of Director for the Institute for Supply Management
➢ Work Experience:
• Six Sigma for Global Top tier companies for GE, Praxair, Merck & Co., Dade Behring,
Westinghouse Electric company
• 1993-2007: Held various leadership positions in Procurement, SCM, & Product Management
• 2008 - Present: Holds Procurement leadership position for LGE Corporate
Panelist: Chae-Ung Um
Company: LG ElectronicsRole: Corporate SVP, Global Procurement Strategy & General Procurement Function Division
Sustainable Sourcing Experience➢ Leading Sustainable Procurement transformation for LGE and its affiliate companies in LG Group
➢ Recipient of GE Corporate “Extra Step” Award Winner for supporting Small Disadvantaged &
Women-Owned Business Enterprises
Brief Biography
Eco-friendly Business
Reduction of Green House Gas emissions
LG Social Contribution
LG ElectronicsSUSTAINABILITY
SUSTAINABILITY
400 million tons (cumulative,
target by 2020)
[Solar Energy]
[Electric Car]
✓ Solar Energy
✓ Electric Car
✓ Water Treatment
✓ LED
✓ Energy Storage
System
As of 2008,353K tons
PROCUREMENT
✓ For Supporting women procurement professions(20132017)
- LGE Procurement (HQ): 63 76 women (CAGR 4.8%) * Procurement Strategy & GP/VC Co.: 13 29 women (CAGR 22.2%)
✓ Supplier supporting program‐ Financial Support: Yearly Win-Win Growth Fund $17M ‐ Capability Enhancement Support Program: Training & HR Support
✓ For Supporting small to medium companies
“Win-Win” Growth
[Water Treatment]
✓ Ethiopia’s LG Hope Community
LG HopeVillage
LG-KOICA1)
Hope TVET2)
College
LG HopeVaccination
LG HopeDecedents
✓ Donation program : LG Social Justice Award
1) Korea International Cooperation Agency2) Technical and Vocational Education and Training
AWARDS
North America
✓Listed on the Dow Jones Sustainability World Index for four consecutive years
✓CES Innovation Award for 21 products (2016)✓CES Innovation Award for 41 products including
the Best of CES Award (2015)
✓Awarded the 2014 ENERGY STAR Partner of the Year Award & the ENERGY STAR Sustained Excellence Award
✓Winner of 3 Gold prize & 25 awards at 2016 iF Design Awards
✓Winner of 26 awards at 2014 iF Design Awards
✓Singled out as the industry group leader at 2014 for Leisure Equipment & Product and Customer Electronics
✓Winner of 13 awards at 2015 Reddot Award
✓ Awarded Inter Solar Award 2015 for efficient solar power solution
✓ Named among the most sustainable corporations for the third consecutive year
Latin America
✓Listed on Great Place to work at 2011
Asia
✓Receipt of six prizes at the 18th
Energy Winners of the Year Awards
Europe
✓Winner of 18 awards at 2015Good Design Award
Nestle experience - 36 years
• 6 years in product R&D
• 17 years in IT Infrastructure
• 13 years in North America Procurement - a shared services organization supporting the Procurement function in all Nestlé North America operating companies.
Sustainability Experience
• Direct oversight of the Nestle North America Responsible Sourcing Program focused on:• Managing supply chain risk via supplier corporate social responsibility
(CSR) audits• GHG (greenhouse gas) assessments of direct material (raw ingredients
& packaging) and indirect material suppliers• Raw material traceability and supply chain mapping• Assessments at the source of origin (farms, plantations, forests) for key
packaging materials and ingredients.
Panelist: Brian Jones
Company: Nestlé North AmericaRole: Responsible Sourcing Manager
NESTLE’S SUSTAINABILITY RECOGNITIONS
2016 Results• 61% of total volume sourced from suppliers are compliant with the Nestle Supplier Code• 51% of raw ingredients in our priority categories are traceable and 44% are responsibly
sourced• Over the last 10 years, reduced direct GHG emissions per ton of product by 39% while
increasing production by 46%.
Sustainability at Nestlé
Brief Biography• 30 Years Industry/Global Experience – Procurement, Supply Chain,
Manufacturing, Quality, & Finance• Owens Corning
• Whirlpool• Eaton
• MBA – The University of Toledo
• Six Sigma Black Belt
• Sustainability • Lead Sustainable Sourcing for Owens Corning
• Supplier Risk Assessment & Mitigation• Supplier Audits• External Reporting – Robecco SAM / DSJI GRI
Panelist: John Kerr
Company: Owens CorningRole: Global Leader: Operations, Finance & Planning for Strategic Sourcing
John – do you have a higher-res image?-PB
Sustainability at Owens CorningKey Actions / Results
• Sixth Year on Dow Jones Sustainability Index – 3rd Year as Industry Leader• Global Supply Chain Benchmark in the Building Materials Category
• Awarded Green Cross for Safety in 2015• 0.52/100 employees RIR - 86% below Industry Average
• Completed purchase agreements for 250MW of wind energy• Installed 2.4MW of Solar at our World Headquarters• Completed Life Cycle Assessments on all core products• Recycled 2.5 Billion pounds of end-of-life shingles• Formal Supplier Code of Conduct communicated annually• Hosted first Supplier Sustainability Summit for top 100 in 2016
YOUR FEEDBACK IS IMPORTANT
Please take a few minutes to complete this brief survey.
Survey link: www.instituteforsupplymanagement.org/AB17
or Scan the QR code on your smartphone.