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

ith increasing economic developmentaround the world and continuingglobalisation, mankind faces an era ofunprecedented demand for transport.Road transport remains the largest supplier of mobility.We will not be able to do without it. But we will need toaddress the challenge of rising CO2emissions, with noless than a transformation of all parts of the transportsector, including autos, fuels, roads and more.As leaders of automotive industry groups, we know thatvehicle technology will play an important role in this,and manufacturers are investing heavily in a range oftechnologies to do their part. In addition to constantlyimproving the internal combustion engine, they areintroducing and further developing clean diesel,alternative fuel, hybrid, all electric and fuel cellvehicles. All of these technologies will be important forreducing emissions in the short-, mid- and long-term.However, improving technology exclusively has asignificant drawback: with the turnover of the vehiclefleet taking 15-20 years, a long time is required fortechnology to have a significant effect on emissions.Measures besides vehicle technology that canimmediately reduce CO2from the whole road transportsector are therefore indispensable. They can ensurethat CO2emissions are reduced swiftly - and cost-effectively. Together with improving technology, theyconstitute what we call the integrated approach toemission reduction.This integrated approach starts with trafficmanagement and infrastructure. Electronic or "smart"mobility aids, as part of Intelligent Transport Systems,can do much to enhance traffic flow. "Co-modality",which is the good linkage between different modes ortypes of transport, increases the efficiency of thetransport system as well. Drivers can reduce the fuelconsumption of their vehicle instantly by adopting eco-driving techniques. The uptake of new and improvedtechnologies should also be encouraged by appropriatefiscal and other incentives, which compensate part ofthe additional costs consumers will face when buying,for instance, electrically chargeable vehicles. This willhelp increase scale and thereby reduce costs, inparticular of batteries.One thing is certain: progress will depend on takingaction and applying an integrated approach worldwide,involving all relevant parts and stakeholders of the transport sector. The Asian Development Bankrecently wrote in an authoritative study on the subject: "There is a growing consensus amongtransportation, environmental, and developmentexperts and stakeholders that actions must be taken onall possible fronts to move toward sustainable low-carbon transportation, pursuing an 'avoid-shift-improve' strategy." As policymakers address CO2reductions, it isimportant to emphasise that different approaches arefavoured in different regions of the world due tocharacteristics of local economies, local culture andinfrastructure, so there is no single right approach.Developed and developing countries have differentneeds and capacities. Customer demands differ aswell, and transport infrastructure needs to be adaptedto local and regional geography, population andtransport needs. Urban and rural areas often need tofind different solutions. Moreover, the kind of energyavailable is far from the same in different regions. Aworld of views exist on reducing transportation CO2,and regional and country automobile associations canprovide their perspectives on the merits of variousoptions in their markets." "ONE THING IS CERTAIN:PROGRESS WILLDEPEND ON TAKING ACTIONAND APPLYING AN INTEGRATEDAPPROACHWORLDWIDEA SMART APPROACH FORROAD TRANSPORT098GREEN TRANSPORTDAVE McCURDY, PRESIDENT AND CEO, ALLIANCE OF AUTOMOBILE MANUFACTURERS (USA)IVAN HODAC, SECRETARY-GENERAL, EUROPEAN AUTOMOBILE MANUFACTURERS' ASSOCIATION (ACEA)YOSHIYASU NAO, PRESIDENT AND VICE-CHAIRMAN, JAPAN AUTOMOBILE MANUFACTURERS ASSOCIATION (JAMA)WPhoto: © European Union 2011