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CORPORATIONS

Staring at the future

“We can’t solve problems by using the same kind of thinking we used when we created them.”

Albert Einstein

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Globalization Internationalization InternaĹŁionalizare Liberalization Liberalizarea Universalization Universalizarea

Modernization Modernizarea

Deterritorialization Deteritorializarea

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Environment and Globalization “the linkage” • 1.The increased demands for critical, finite natural resources.

• 2.The new security threats to an already insecure

The Pollution Haven Effect is Legal, but is it also Social & Ethically Fair?

world.

• 3.The newly prosperous and the established wealthy.

• 4.The consumption • 5.The concerns

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Avenues for Action: What Can We Do? … both globalization and environment challenge the current architecture of the international system as it now exists…

Establishing sustainable development has become a common goal

Sustainable Development -“The three Pillars”

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, by stipulating that any development policy must incorporate economic, social and environmental components.

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Environmental change is upon us. “People should be concerned about what we are doing to the climate,“ "The burning of oil and other fossil fuels releases carbon dioxide, which rises, blankets the earth and traps heat."

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Responsible businesses are at the heart of society.

• Companies that understand their links with the communities, and their impact on the environment, are most likely to prosper in the long-term.

• Interest from stakeholders in firms’ environmental performance is at an all-time high.

• There is an increasing recognition that good environmental performance makes good business sense.

• Environmental risks and uncertainties impact to some extent on all companies, and affect investment decisions, consumer behaviour and Government policy.

• Failure to plan for a future in which environmental factors are likely to be increasingly significant may risk the long-term future of a business.

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Policy and regulatory context and initiatives • Sustainable Development Strategy – Securing the Future (UK)

• Accounts Modernisation Directive • GHG (or Carbon) Trading Programs– Cap-and-Trade Programs, Carbon Offsetting • EU Emissions Trading Scheme

• Kyoto Protocol • GHG (or Carbon) Taxes • Baseline-and-credit programs

• Process or Product Standards 7

Supply Chains

Green Supply Chains

Green Companies

A set of three or more entities (organizations or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer .

The process of using environmentally friendly inputs and transforming these inputs through change agents whose by-products can improve or be recycled within the existing environment. This process develops outputs that can be reclaimed and reused at the end of their life-cycle thus, creating a sustainable supply chain.

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Reconditioning, Reuse, Recycling

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A Great Example!!!

Could you ever imagine it?

The Production of an Electric Toothbrush is a Worldwide matter!!!

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Climate Changes Extreme weather, natural disasters, reduced productivity Consequences of growth to environment..

•Droughts & Flooding •Increased frequency & intensity of heat-waves, •hurricanes, cyclones, storms and tornados.

•Acid Rain •Ice melting & Rises of sea level

Consequences of environment to growth It disrupts operations and transportation.

It damages commercial premises.

It depletes agriculture resources It can dislocate customers, reduce consumer demand and purchasing power.

It can completely change the risk equation of where and how companies can operate profitably.

It causes political and social crisis that could lead in instability

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Why develop green businesses?

Facing the Risks Extreme weather events threaten the productivity Consumers demand green products Insurance Risk and Costs

Loss of Customers and market share Costs of adaptation to extreme weather events Legal Risks Stakeholders demand green investments

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Challenges drive Green

The greening of supply chains represents one of the most effective ways in which companies can fulfil their climate change responsibilities and the urgency of the need for action means that decisions need to be taken now.

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Environmental Key Performance Indicators (KPIs) •Which are?

•How were determined?

•Why measure & report?

A carbon footprint is a measure of the impact our activities have on the environment, and in particular climate change.

It relates to the amount of greenhouse gases produced in our day-to-day lives through burning fossil fuels for electricity, heating and transportation etc.

The carbon footprint is a measurement of all greenhouse gases we individually produce and has units of tones (or kg) of 14 carbon dioxide equivalent.

KPIs

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There are direct and indirect Business Risks that threaten companies

The Past Does Not Reflect the Future

Source: Gap&Gemini

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Why manage and report environmental performance?

Grasping the Opportunities !

Gain & Promote yourself !

It may be cheaper than a commercial spot ! Cost savings and productivity gains Revenue Opportunity Fossil fuel independence and Improved efficiencies Improved sales Increase customer acquisition and loyalty Enhance brand positioning and value Preferred supplier status Increased attractiveness to the investment community Improve International appeal Product and service innovation Limit insurance risk Employee recruitment Employee pride and loyalty Improved public relations Licence to operate 17

How can a company develop a sustainable green action agenda

For most companies, the path to sustainability begins with the supply chain. After all, the supply chain is where companies move things, make things, store things, and throw things away. It is a crucial part of an organization's environmental footprint. Green supply chain management-the integration of both environmental and supply chain management-is a proven way to reduce a company's impact on the environment while improving business performance.

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How to Green your Supply Chain

Replace materials in the product Implement more efficient or cleaner processes Eliminate supply chain steps

Reduce packaging materials

Improve energy efficiency of facilities and equipment

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DELTA ex. Vivartia, Division of Dairy and Drinks

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DELTA ex. Vivartia, Division of Dairy and Drinks

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DELTA www.vivartia.com actions and initiatives with respect for the Environment Delta and its factory of concentrate milk in Platy Imathias are certified with ISO 14001, the standard of environmental management!!!

• Vivartia incorporates environmental policies, programmes and practices in all of its business activities, as an element of management in all operations.

• During the planning, development and use of its facilities, Vivartia bears in mind, first and foremost, the efficient use of energy and materials, minimizing negative impact on the environment waste generation, as well as the safe disposal of industrial waste.

• Vivartia trains its personnel in, and heightens their awareness of environmental issues.

The following measures should be noted in particular: • Recycling of by-products; edible ones are provided to pig farms.

• Collection and recycling of paper, batteries and other recyclable materials.

• Installation of state-of-the-art filters on all silos.

• Landscaping and improvement of the natural environment at facilities, with extensive tree planting.

• Exclusive use of natural gas -where infrastructure is available- for operations and activities. Where natural gas is not available propane is used (instead of petroleum), for almost zero emission of pollutants.

Finally, it is of particular importance to Vivartia how returned products are managed, so as to: • Protect the consumer from the use of expired products.

• Prevent its products from being sent to waste dumps, from where they might be taken for resale.

• Protect the environment by reducing the burden on sanitary landfills.

Thus, Vivartia, in implementation of and European legislation to regulate expired milk quantities and other dairy products to undergo composting, has proceeded to cooperation with a special Composting Facility. This particular facility, through the process of breaking down organic materials with the help of micro- organisms, produces a kind of soil- improvement material (compost) that is completely odourless and increases the fertility of soil without negatively22 impacting the environment.

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Impact of Globalization on Environment: How do we measure and analyze it? Soumyananda Dinda1, Department of Economics and International Development, University of Bath, UK, February 2008 Double exposure: assessing the impacts of climate change within the context of economic globalization, Karen L. O'Brien, Robin M. Leichenko", CICERO, University of Oslo, Norway (JOURNAL OF BUSINESS LOGISTICS, Vol.22, No. 2, 2001) DEFINING SUPPLY CHAIN MANAGEMENT by John T. Mentzer The University of Tennessee, William DeWitt The University of Maryland, James S. Keebler St. Cloud State University, Soonhong Min Georgia Southern University, Nancy W. Nix Texas Christian University, Carlo D. Smith The University of San Diego and Zach G. Zacharia Texas Christian University 2008 Supply Chain Monitor “How mature is the Green Supply Chain?” BearingPoint Management & Technology Consultants, www.escpeap.eu/uploads/media European School of Management Greening North America’s Trade Corridors, Dr. Stephen Blank, Ross Distinguished Visiting Professor of Canada-US Business and Economic Relations Western Washington University Dr. Barry E. Prentice, Professor, Supply Chain Management, University of Manitoba www.defra.org.uk Gap & Gemini, Future Supply Chain 2016 Report Securing the Future – The UK Government Sustainable Development Strategy, March 2005.

Framing Climate Risk in Portfolio Management, Ceres World Resources Institute http://ec.europa.eu/environment/climat/kyoto.htm Achieving high performance in an Era of climate change, Accenture report Millennium Ecosystem Assessment, a 4-year study involving 1,360 experts worldwide. http://www.millenniumassessment.org Five Propositions, “Environment and Governance Project” of the International Institute for Sustainable Development IPCC’s 3rd Assessment Report, in 2001 Aberdeen Group, Building a Green Supply Chain for Fun and Profit, March 2008 Article at (http://www.logisticsit.com/absolutenm/templates/article-retail.aspx?articleid=4283&zoneid=49) http://www.globalcarbonexchange.com/carbon-impact-on-business/business-risks.html New Zealand Business Council for Sustainable Development, www.nzbcsd.org.nz/supplychain http://www.unepfi.org http://www.mhia.org/news/industry/7056/the-green-supply-chain By Patrick Penfield Whitman, Sch of Management Syracuse University http://www.awarenessintoaction.com/whitepapers/green-supply-chain-sustainable-programs.html The Lean and Green Supply Chain: A Practical Guide for Materials Managers and Supply Chain Managers to Reduce Costs and Improve Environmental Performance www.Vivartia.com 23

Vă mulţumesc!!

FONDUL SOCIAL EUROPEAN Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007 -2013 Axa prioritară nr. 3 „Creşterea adaptabilităţii lucrătorilor şi a întreprinderilor” Domeniul major de intervenţie 3.2. „Formare şi sprijin pentru întreprinderi şi angajaţi pentru promovarea adaptabilităţii” Titlul proiectului: : „COPMED – COMPETENTE PENTRU PROTECTIA MEDIULUI” Contract nr. POSDRU/81/3.2./S/52242 Proiect cofinanţat din Fondul Social European prin Programul Operaţional Sectorial Dezvoltarea Resurselor Umane 2007-2013 –„Investeşte în oameni!