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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 Chain124 green supply chain

efficient shower head, in order to help clients cut their energy bills and water use. Other solutions include closed-loop manufacturing, cradle to cradle approaches, or considering waste as a resource.Supply Chain transformation requires company (r)evolution We have observed three different ways to build sustainable supply chains:nRevisiting company value propositions and shifting business models are required for those companies who are genuinely keen to redefine their supply chain. A few companies have already heeded this challenge and redefined who they are, thus dramatically affecting their internal organisation, their supply chain, and consequently their environmental impact. Xerox, InterfaceFLOR, DuPont and Dow Chemicals to some extent, and a number of Utility companies for example have already developed business models centred on services rather than products, i.e. "printing ability", "flooring services", "painting services", "rental of chemical products" or else "thermal comfort" respectively;? nEnsuring sustainability of supply chains requires a profound perspective change, a thorough understanding of the company's complex relationships with its outside world, and the development of new Partnerships: i.e. other industries, non-business organisations, clients, social entrepreneurs, suppliers, etc. Such steps help change perspectives from "company-centric" to "ecosystemic", thus sparking off break-away supply chain innovations;nAll significant supply chain transformations must find support outside of traditional supply chain functions. R&D, Innovation, Marketing and Strategy executives significantly influence supply chains, and they need to deeply understand and appreciate the risks and opportunities in changing the game.conclusionThese changes require strong determination and bold leaders to build ambitious visions for their organisations. They will have to rely on an open, transparent and circular economy-minded organisational culture, to allow a genuine shift towards a low-carbon economy. As we have outlined throughout the five short paragraphs above, it is not about talking green all along the supply chain. It is about future-proofing the organisation. nAbout BearingPointWe deliver Business Consulting. We are an independent firm with European roots and a global reach. In today's world, we think that Expertise i s not enough. Driven by a strong entrepreneurial mind-set and desire to create long term partnerships, our 3200 Consultants are committed to creating greater client value, from strategy through to implementation, delivering tangible results. Our teams assist our clients in defining Corporate Strategies and implement related transformations which embed Sustainability considerations across functions and organisational layers. As our clients' trusted advisor for many years, we define where to go and how to get there. To get there. Together. www.bearingpoint.comEmail: xavier.houot@bearingpoint.com and andreas.merbecks@bearingpoint.comReferences 1 From 0,248 to 0,194 kgoe/$2005p from 1990 to 2010 at constant purchasing power parities, Enerdata, Global Energy Statistical Yearbook 2011. 2 Olivier, J.G.J., Janssens-Maenhout, G., Peters, J.A.H.W. & J. Wilson (2011), Long-term trend in global CO2 emissions 2011 report, The Hague: PBL/JRC. 3 Cf. GhG (GreenHouse Gas) Protocol : Scope 3 impacts refer to "other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc." Pictured: Xavier Houot (left) and Andreas Merbecks (right) " All significant supply chain transformations must find support outside of traditional supply chain functions "green supply chain 125