May 13-Consumer products giant Procter & Gamble has launched a sustainability scorecard to measure and improve the environmental performance of its key suppliers.
Similar to the supplier scorecard introduced in 2007 by Wal-Mart Stores, the P&G model will assess P&G suppliers environmental footprint and encourage continued improvement by measuring year-to-year energy use, water use, waste disposal and greenhouse gas emissions.
The launch of [the scorecard] represents the next step in P&G s commitment to environmental sustainability and reflects the company s holistic, end-to-end supply chain strategy, Bob McDonald, Cincinnati-based P&G s chairman, president and CEO, said in a May 12 news release.
Keeping sustainability at the core of our business fuels innovation and strengthens our results, he added.
The company said the scorecard will be open code for use by any organization to help determine common supply chain evaluation processes across all industries.
The scorecard is the result of 18 months of collaboration with more than 20 representatives from P&G s global supply chain.
P&G said the scorecard relies on worldwide sustainability measurement standards, including protocols from the World Resources Institute in Washington; the World Business Council for Sustainable Development in Geneva; and the London-based the Carbon Disclosure Project.
Our suppliers wanted a tool that was flexible, yet grounded in existing measurement standards and, by working together, we developed a framework that will help drive real improvement across all industries, Rick Hughes, P&G global purchasing officer, said in the release.
Suppliers will have a full year to prepare to report their data before the rating can adversely impact their supplier rating with P&G, the company said.
In the future, P&G will use the scorecard to determine each supplier s sustainability rating as part of its annual supplier performance measurement process.
After analyzing initial data collected from key suppliers, P&G will decide on a wider roll-out of the scorecard, the company said.
Supplier scorecards have gained fairly wide distribution since Wal-Mart announced its version in 2007, with other large corporations developing or imp0lementing their own versions.
Managed health care provider Kaiser Permanente of Oakland, California, on 4 May said it will require suppliers to provide environmental data for $1bn worth of medical equipment and products used in its hospitals, medical offices and other facilities.
Critics of sustainability scorecards say their use is an effort by large companies to cut down on their shipping and storage costs, while increasing research and development expenses suppliers must pay to meet the requirements.
Similar to the supplier scorecard introduced in 2007 by Wal-Mart Stores, the P&G model will assess P&G suppliers environmental footprint and encourage continued improvement by measuring year-to-year energy use, water use, waste disposal and greenhouse gas emissions.
The launch of [the scorecard] represents the next step in P&G s commitment to environmental sustainability and reflects the company s holistic, end-to-end supply chain strategy, Bob McDonald, Cincinnati-based P&G s chairman, president and CEO, said in a May 12 news release.
Keeping sustainability at the core of our business fuels innovation and strengthens our results, he added.
The company said the scorecard will be open code for use by any organization to help determine common supply chain evaluation processes across all industries.
The scorecard is the result of 18 months of collaboration with more than 20 representatives from P&G s global supply chain.
P&G said the scorecard relies on worldwide sustainability measurement standards, including protocols from the World Resources Institute in Washington; the World Business Council for Sustainable Development in Geneva; and the London-based the Carbon Disclosure Project.
Our suppliers wanted a tool that was flexible, yet grounded in existing measurement standards and, by working together, we developed a framework that will help drive real improvement across all industries, Rick Hughes, P&G global purchasing officer, said in the release.
Suppliers will have a full year to prepare to report their data before the rating can adversely impact their supplier rating with P&G, the company said.
In the future, P&G will use the scorecard to determine each supplier s sustainability rating as part of its annual supplier performance measurement process.
After analyzing initial data collected from key suppliers, P&G will decide on a wider roll-out of the scorecard, the company said.
Supplier scorecards have gained fairly wide distribution since Wal-Mart announced its version in 2007, with other large corporations developing or imp0lementing their own versions.
Managed health care provider Kaiser Permanente of Oakland, California, on 4 May said it will require suppliers to provide environmental data for $1bn worth of medical equipment and products used in its hospitals, medical offices and other facilities.
Critics of sustainability scorecards say their use is an effort by large companies to cut down on their shipping and storage costs, while increasing research and development expenses suppliers must pay to meet the requirements.
