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TRANSFORMING THE WHOLE SUPPLYCHAIN FROM ITS FOUNDATIONSThe deep change in the Supply Chain environmentalfootprint can only come from a complete review of theproduct lifecycle, from its design to its second life. For instance, eco-design is a must, as 80 per cent ofthe environmental impact of a product is determinedduring its design, says German Environment Agency. Green second life and operations1is tightly linked toeco-design. In the past, recycling was conceived as anindependent matter, and the only connection it hadwith production was either the purchase or the reuse ofrecycled materials. Over the years, second lifeprogressively became a privileged matter of eco-design. Our survey shows that 78 per cent ofcompanies are now being engaged in such initiatives.On the purchasing side, two thirds of companiesadopted or plan to adopt a green policy for theirpurchases. Buyers are preferably choosing certifiedsuppliers, but there is more in the balance: companiesalso encourage suppliers who have a low raw materialconsumption, controlled emissions and pollutionlevels and components tracking. Suppliers not fulfillingthese standards are progressively excluded. However,this evolution also implies getting over the classiccustomer-supplier relationship model, and thinking096SUPPLY CHAINabout new internal and external collaborative forms.MEASURING THE ENVIRONMENTALIMPACT: A REQUIRED BASELINEEnvironmental thinking is about reducing not onlycarbon but also all other toxic and harmful emissions.Nevertheless, the global warming thread is one of themajor motivations to start green acting. Our surveyshows that 60 per cent of the interviewed companieshave not assessed the carbon footprint of their SupplyChain as yet. However, 37 per cent of those companiesintend to catch up within the next three years, whichmeans that in 2012 more than 70 per cent will havean accurate measurement. Defining a baseline by measuring an initial carbon footprint is theprerequisite for setting up realistic reduction goals. Increasingly, companies are realising that virtual, notbased on hard facts, reduction goals cause more harmthan good. Carbon footprint represents much morethan simply measuring CO2emissions of the SupplyChain operations. It identifies the actions to belaunched to control the environmental impact and optimise operational costs of an organisation.Eighty per cent of the companies who measured their carbon footprint, identified immediatelyapplicable improvement initiatives that led to concrete improvements.FROM AWARENESS TO ACTIONPhoto: Fotolia © Médiathèque AXA - Rights reserved

GREEN SUPPLY AS AN ECONOMICSUCCESS FACTOR -MYTH ORREALITY?As depicted in our survey, a strong change of mindsethas occurred during these past years: corporateacceptance has grown, so has the idea that "green" isgood for business.In terms of business case acceptance, compared to two years ago, practical results have shown thatextra costs can be accepted for green initiatives.Secondly, companies are now convinced that it ispossible to address both business objectives andenvironmental needs:n 70 per cent of the interviewed companies declarethat green Supply Chain is a true economicallever;n More than a half see it as a source of easilymeasurable profit; n For 47 per cent of the companies, the return oninvestment is reached before three years.Taking actions is not anymore the result of a temporary trend. Companies that chose to implementa green Supply Chain invest and commit in the matter in the long run. The proven ability of greeninitiatives to face the consequences of the recenteconomic crisis also proves the sustainability ofenvironmental actions. According to 66 per cent of the surveyed companies, the crisis did not have abraking effect on their planned and on-goinginitiatives. To the contrary, most of the initiatives havebeen accelerated. TREND FOR THE COMING YEARS: IT ISTIME FOR GREEN SUPPLY CHAINS TOMATUREAs concepts are now mature, tools developed,examples proven, time has come for the Green SupplyChain philosophy to generalise and become standardpractice in European corporations. We are convincedthat two thirds of companies will implement greenSupply Chain strategies within the next two years andwill deliver expected results both for the planet and forthe businesses. n1This expression was imagined by BearingPointconsultants (patented terminology). It qualifies logisticsflows and operations linked to the revalorisation ofproducts and components after their use.ABOUT BEARINGPOINTWe deliver Business Consulting with Management andTechnology capabilities. We are an independent firmwith European roots and a global reach. In today'sworld, we think that Expertise is not enough. Driven bya strong entrepreneurial mindset and desire to createlong term partnerships, our 3,200 Consultants arecommitted to creating greater client value, fromstrategy through to implementation, delivering tangibleresults. As our clients' trusted advisor for many years,we define where to go and how to get there.To get there. Together.bearingpointconsulting.comSUPPLY CHAIN097