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Environment

P&G to measure the environmental sustainability of its suppliers

Procter & Gamble is launching a new tool to measure and improve the environmental footprint of its key suppliers. The “Supplier Environmental Sustainability Scorecard” will rate the company’s suppliers performance with regard to measuring energy and water use, waste disposal and greenhouse gas emissions.

A tool to rate suppliers’ environmental footprint

Developed in conjunction with over twenty leading global suppliers, Procter & Gamble’s Supplier Environmental Sustainability Scorecard will help the company to measure the environmental performance of its supply chain. This new rating tool will assess P&G suppliers’ environmental footprint by measuring energy use, water use, waste disposal and greenhouse gas emissions on a year-to year basis.

P&G’s new supplier scorecard is the result of 18 months of work and close collaboration with the organization’s Supplier Sustainability Board, which includes more than 20 leading supplier representatives from P&G’s global supply chain. The scorecard relies on accepted worldwide measurement standards, including protocols from the World Resources Institute, the World Business Council for Sustainable Development and the Carbon Disclosure Project, so as to minimize redundant efforts and build on existing best practices.

Setting a new global standard

P&G says its goal in deploying the scorecard is to enhance supply chain collaboration, measure and improve key environmental sustainability indicators, and encourage the sharing of ideas and capabilities to deliver more sustainable products and services for its consumers. The company also intends to lay the foundation for an industry standard. The scorecard can therefore be used by any organization, and P&G considers it is similar to open code software. Furthermore, P&G suppliers are also encouraged to use the scorecard within their own supply chains.

Suppliers selection

The scorecard is specifically designed to focus on, and encourage, year-on-year improvement - regardless of a supplier’s total size or the current stage of its sustainability program,” says the company in a release. P&G’s suppliers will have a full year to prepare to report their data before the rating can adversely impact them. However, in the future, P&G will use the scorecard to determine each supplier’s sustainability rating as part of P&G’s annual supplier performance measurement process.

The scorecard may be downloaded at:

http://www.pgsupplier.com/environmentalsustainability-scorecard

Vincent Gallon

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