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industry intro 003

employment. And with the cost of energy, thus transportation, expected to increase sharply, CFOs will work much closer with Supply Chain heads and CSOs (Chief Sustainability Officers) to reduce transported ton-kilometres. The Los Angeles based American Apparel, with a vertically integrated business model, maximises its proportion of local value-addition, reduces transport, and markets its difference.Less stuff is good stuffMaking both good business and ecological sense, simply "using less stuff" has been a natural driverof the relative decoupling in material intensity observed so far, but this has to go much further. This means using different resources (e.g. phasing out non-renewable resources), using less of them (e.g. minimising renewable resources use), and using them in a better way (e.g. "use rather than own" as well as "reuse, repair, before eventually recycle"). The core goal here is to redesign products, production processes and use for a more frugal world (cf. stretch targets set by Unilever, P&G, and L'ORÉAL in this field, with a decoupling as high as 50 per cent over a 10 to 20 years timespan). To get a sense of where to start, companies could behave today as if CO2 and other resources were priced four to five times higher than their generally accepted market value. With such an approach, developing an Environmental P&L (e.g. PPR) will help define priorities for action. Leaders seek resource efficiency gains mainly through cost savings - keeping externalities in mind. This approach is relevant, as it drives resource efficiency much faster than the sheer "responsibility" approach.Change your clients Only a few leaders have started to deal with their"Scope 3" impacts3, but it is becoming clear to many businesses that it is exactly the place wherethe biggest footprint lies. As an example, a reportpublished by the WWF and the extra-financial rating agency Vigeo outlined that 99.9 per cent of the banking industry's environmental impacts stem from its Scope 3 emissions. Companies can make a difference by working with their clients to reduce their own aggregated impact. One such example is the partnership between Unilever and Wal-Mart around the Suave Shampoo, providing in-store information on how to preserve the environment as well as a discount on a water " It's not about talking green all along the supply chain. It's about future- proofing the organisation " Key success factors to build a Sustainable and Green Supply Chain118 green supply chain