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Government Contracting Accounting and Compliance Developments Conference
June 7&8, 2012
8:00 AM
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Global companies are coming under increasing pressure to identify green alternatives for managing operations risks, particularly when it comes to the supply chain, new research reveals. According to a newly published report, there are "highly charged" climate change and sustainability risks that must be addressed as organizations seek to eliminate waste from their supply chains.
The report, issued by Ernst & Young, warns that demand is growing from a proliferation of large corporate qualification and scorecard programs that are employed to examine carbon footprints. In addition to commercial customers, consumers, investors, analysts and other stakeholders are demanding transparent information about the lifecycle of products and services.
Government engagement is also motivating corporate focus on greening the supply chain, according to the study. It pointed out that, in November, the US government announced its GreenGov Supply Chain Partnership, a pilot program to cut waste and pollution in the federal supply chain by measuring greenhouse gas emissions.
"Supply chain and environmental professionals share a common goal: to reduce waste. While these supplier programs could be seen as a burden, they are actually great opportunities to cut costs while reducing an organization's environmental footprint. The risks - once identified and managed for an individual organization - can help foster customer relationships and yield competitive advantages," explained Steve Starbuck of Ernst & Young.
Supply chain operations professionals are advised by the report to assess climate change and sustainability reporting needs, including evaluating the integrity and alignment of data across the supply chain. In addition they should monitor and assess existing or potential government regulations on the entirety of the supply chain as well as reviewing the corporate risk register and risk management policies for appropriate inclusion of climate change and sustainability risks.
