Kuhn Associates Sustainability Advisors LLC
Sustainable Business News 
 
Volume 2015, Number 2                                                                                        February 2015  
In This Issue
Featured Article
Ideas You Can Use NOW
Calendar of Events
About Us
We help companies throughout the product supply chain create sustainable businesses.

Consulting services
include creating enterprise-level sustainability visions, goals and strategies; re-engineering internal processes to reflect sustainable best practices; maximizing the sustainability of today's complex supply chains and assisting with communicating sustainability information in writing and in media.

Training services include webinars and in-person seminars for large to small groups on topics ranging from GHG accounting to Mastering Supply Chain Sustainability and Social Responsibility. We can custom design training to suit your needs.

Sustainability Tools include Turnkey Solutions sustainability data management software - a cloud-based data collection, management and reporting system designed with supply chain networks in mind.

 

We work in a variety of industries. We are extremely sensitive to clients' budgets and their capacity for change.
 
Whether it's an environmental or social responsibility issue, our team of professionals is ready to help your business. Please contact us to learn how we can help you.
 
Call 212-343-1006 today.


In this newsletter edition, our Feature Article discusses the advances being made in the field of sustainable purchasing and the important role that this discipline can play in saving a company money and achieving corporate sustainability goals.

In our Ideas You Can Use Now section, we provide some specific tactics for implementing or advancing a sustainable purchasing program.
 

Finally, in the Calendar section, we suggest a few sustainability-related events in the coming few months that you might want to investigate.  

  • We're accepting new clients to advise and train during 2015. Please refer your colleagues to us.

    

Happy reading! 

 

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Feature Article:  The State of Sustainable Purchasing 


Almost all business activities create environmental impacts and many, if not all, create social impacts as well. We like to think of the universe of business activities as consisting of its Places (buildings and land), People, Processes and Products and, if you consider the many processes used in business, then the procurement process is certainly a major area of work that has the ability to create significant impacts. Many companies have realized this and much is now being done to make purchasing more "sustainable," in terms of reducing both its overall environmental impacts (carbon footprint, water impacts, chemicals issues and waste management) and social impacts (labor and human rights issues), while saving money. Let's take a look at the important developments. 
  •  Leading businesses are investing significant resources in assessing their purchasing practices for sustainability attributes. They are looking both at the goods and materials they procure and the businesses from whom they buy. Since there are so many possible environmental and social impacts that my come into play, smart businesses first conduct a "materiality" assessment to see which of these issues rise to a priority level. The results are different for every company, of course, but fortunately there are similarities within industries that might lead to industry-focused solutions.

  • The U.S. Federal government, through the General Services Administration (GSA), continues to implement the intent of Executive Order 13514, which calls on federal agencies to set and meet sustainability guidelines in many areas, including purchasing. The GSA oversees over US$500bn in purchases annually, so this task is both herculean and important. GSA representatives have stressed that they don't want to create a parallel program to private industry; rather, they would like to help craft programs that are broadly applicable and also cull best practices from the private sector.
  • Because it's rarely clear exactly what constitutes a sustainable good or service, many standards-setting organizations are working diligently to create roadmaps and guidelines for institutional purchases to use in developing their strategies and tools to use in implementing their initiatives and measuring effects. Chief among these efforts is the Sustainable Purchasing Leadership Council (www.purchasingcouncil.org), a membership organization that now has 80 companies representing over US$100bn in annual purchases on board to road test its Guidance for Leadership in Sustainable Purchasing v. 1.0. This document provides category-level guidance in eight sectors, focused on minimizing environmental and social impacts in goods and services purchases. Future iterations will be more comprehensive and, eventually, there will be a rating system for purchasing organizations.

Sustainable purchasing, at its most basic, is very simple: procure environmentally-friendly goods and services from suppliers who are responsible environmental, community and workforce stewards. Of course, doing so at a cost that fits into a viable business model is a real challenge for any company with a global supply chain. Knowing what to buy requires guidance that is still under development and knowing from whom to buy requires transparency and earnest due diligence. But just because it's a challenge does not mean it should be deferred - there's real money to be saved, environmental impacts to lessen and lives to improve.  

 

Call or email us to discuss sustainable purchasing. We have significant experience in this area. 

 

Phone: +1-212-343-1006
Email: info@kuhnassociatesllc.com


Ideas You Can Use Now!
The Feature Article above discussed the important role of sustainable purchasing and highlighted some of the developments in this area. Here, we'd like to give you a few tools to start you on your journey or advance your program to the best practices level if you've already started. 
  • Like other sustainability initiatives, a sustainable purchasing project should be inclusive and multi-stakeholder. In addition to personnel from various levels of your purchasing organization, include some suppliers and other key stakeholders such as engineering.
  • Before setting out to craft your own program, check to see what is being done in your industry. Groups such as AIAG (www.aiag.org) in the auto sector and EUISSCA (www.euissca.org) in the electric utilities arena are developing industry-based solutions that may fit your situation.
  • You have a choice of where to start your program (goods are usually easier than services). Consider either:
    • products/categories that are "easiest"
    • products/categories where you have the most influence
    • products/categories where stakeholders are demanding you take action
    • confining pilot programs to "indirect" materials, so as to minimize disruption to product flow
  • If you've already worked on a number of areas, consider joining the SPLC or other working groups to add your expertise to their knowledge base. Best practices are often developed, tested and shared within these communities first.
 
Contact us to discuss these tips or to get answers to your questions.
Phone: +1-212-343-1006
Email: info@kuhnassociatesllc.com



Calendar of Events


Here are a few of the many interesting sustainability events happening in the coming months that we think are worthy of your attention.

March 12, Seattle, WA - 4th Annual Conference on Social Responsibility - Purpose & Profit covers multiple topics such as collaborative models to create sustainable solutions, telling your story beyond the CSR report, socially responsible investors and employee engagement, among others. Event website: http://www.tacoma.uw.edu/clsr

March 15 - 17, Chapel Hill, NC - The NEXUS 2015 Conference at the University of North Carolina's Water Institute helps participants explore the connection between water, food, energy and climate. Scientists and practitioners explore how the nexus model can help solve issues at the local and international levels. Visit http://www.nexus.unc.edu to learn more.

March 17 - 18, Philadelphia, PA - 26th GLOBALCON, presented by the Association of Energy Engineers, is designed specifically to facilitate those who need to get up to speed on the latest developments in the energy field, explore promising new technologies, compare energy supply options, and learn about innovative and cost-conscious project implementation strategies. To find out more visit http://www.globalconevent.com/.  

March 18 - 19, Bangkok, Thailand - Sustainable Brands 2015 Bangkok will be SB's first conference of 2015. Join the community in Bangkok and learn about the local companies who are recognizing the business benefits of delivering better brands. To learn more visit http://www.sustainablebrands.com/events.
Thanks for reading! Please contact us today to discuss anything you've read here, suggest a topic for a future Newsletter edition or learn how we can help you build a more sustainable business.

Get in touch today! Call us at +1-212-343-1006 or
email us at info@kuhnassociatesllc.com for more information.

Sincerely,

Robert W. Kuhn, President and Senior Advisor
Kuhn Associates Sustainability Advisors LLC
Copyright 2015  Kuhn Associates Sustainability Advisors LLC
Reproduction without prior permission prohibited.