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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

Reinventing Business: Desso's Shift to the Circular EconomyStef Kranendijk, CEO, Desso"We need to reconsider our model of growth," the European Commissioner for the Environment Janez Potocnik said at a recent meeting held at the Dutch Parliament in The Hague.1 "What we need today, is a growth model that looks ahead - one that offers predictability, stability and that is, most of all, sustainable."As business and political leaders gather for the Rio + 20 summit this message is, I believe, fundamental to our future.In 2007, when I became a co-owner and the CEO of Desso, one of Europe's leading manufacturers of carpets and sports surfaces, I built our vision on a circular growth model in which goods are designed to be recycled. Two reports underline the reasons why we need to make this shift. 'Resource Revolution' produced by McKinsey in 2011 stresses the resource constraints and environmental pressures that will ensue as commerce attempts to satisfy the needs of the growing billions of middle classes in the rising economies.In our own market, "China could every year add floor space totalling 2.5 times the entire residential and commercial square footage of the city of Chicago. India could add floor space equal to another Chicago annually."2The economic opportunity in being able to meet this rising demand is huge. However, we cannot do so if the earth's resources are exhausted, leading to price hikes, or if the environment is severely damaged. But if businesses learn to use their resources more effectively, the economic opportunity is enormous. The McKinsey report estimates that global business could make resource productivity savings of between US$2.9 trillion and US$3.7 trillion per year by 2030.3There will be further advantages to businesses that develop these capabilities. "Companies that succeed in improving their resource productivity are likely to develop a structural cost advantage; improve their ability to capture new growth opportunities, especially in resource-scarce, rapidly growing developing markets; and reduce their exposure both to resource - and environment-related interruptions to their business and to resource price risk."4Another report: 'Towards the Circular Economy', produced by the Ellen MacArthur Foundation and launched at the World Economic Forum in Davos, with the analytics crunched by McKinsey & Co, claimed that businesses could save as much as US$630 billion in the EU per year through developing cyclical production models. The report cited Desso as one of the pioneer companies leading the way. "A major spur to innovation and an inspiration for both customers and employees, Desso's broad adoption of the circular economy principles had been driving top-line growth."5Since 2007, when we started on this journey, we have increased our earnings through the worst years of the recession by modelling our business on the circular concept known as Cradle to Cradle®. This means making sure we use materials in more and more of our products that have been assessed against a number of specific human health and environmental criteria. It is a grinding process to assess and reconfigure the ingredients in our Above: Desso AirMaster®, the carpet that clears the air The Floor is Yours?126 gren supply chain