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The GSC’s 3T Summit: Technology, Transparency, Trust

Opening Remarks by Wanda Lopuch, Ph.D., Chairman of the Board, Global Sourcing Council …..

Technology, Transparency, Trust:  the 3T Summit (), presented by the Global Sourcing Council (GSC) in collaboration with Thomson Reuters and Refinitiv, was part of the GSC’s thought-leadership series addressing major issues in today’s supply chains.

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VIDEO 1: The Role of ESG Evaluation & Resources for Successful ESG Practices

 


The Role of ESG Evaluation & Resources for Successful ESG Practices

Hosted by Rosemary Lapka of the GSC and Devon Reichelt of Refinitiv

The following is a summary of the attached video examining what the existing ESG data is telling us about successful supply chain policies & practices and how the role of ESG Evaluation & Resources for Successful ESG Practices is evolving.  It is hosted by Rosemary Lapka of the GSC and Devon Reichelt, Lead Market Specialist for Lipper and ESG at Refinitiv, which was formerly known as the Financial and Risk business of Thomson Reuters. Devon works on a consultative basis with some of the world’s largest asset managers and banks to assist them in understanding capital flows, performance comparables, fee and expense rational, ESG investing, and market sentiment.

Supply chains often make up the majority of a company’s impact on society and the planet. Companies can begin to evaluate and improve the performance of their supply chains through examining ESG factors of their business.  For both financial and market-driven reasons, companies are asking the following questions of themselves and their industries:

  • What resources are available for incorporating ESG evaluations into supply chain activity?
  • How do companies start to design policies that become best practices for responsible supply chains?
  • How does the market evaluate responsible ESG practices?
  • Is there now or will there be a single global set of ESG metrics to evaluate this data?

The answer to that last question is no, there is currently no standardized format.  Which is why the work at Refinitiv is so critical. It assembles the data, analyzes the information, and has developed a structured, weighted format with specific criteria so companies can be compared to each other in a unified set of standards defining their performance on an ESG basis.  This information impacts mutual and pension fund managers who are trying to weed out and guard against investing in any companies that are associated with undesirable business practices such as excessive water use, unfair labor practices, the use of child labor, board and gender equality issues, or any other policy that could be considered detrimental from a social and corporate governance perspective, negatively impacting the performance of their portfolio.  Building that value chain progressed from simply avoiding those companies to seeking out businesses with ESG-friendly products and procedures who were determining what best-practices were in each field, to recognizing that implementing those best-practices led to higher market share and corporate value and were therefore the best investments for their portfolios. We now have companies trying to understand what their peers are doing from an ESG perspective to make sure that they are best-in-class.  

Refinitiv uses at least 178 comparable measures and over 400 different metrics to develop their comprehensive ESG database, which impacts how the global financial community measures ESG performance.  They source data from an ESG content perspective from multiple providers. Some analytical groups are provided information directly from corporations and some scour reports and online sources using artificial intelligence.  But since Refinitiv wants to note the exact resource that has provided that data and reference it, map back to it, they use information that is publicly available; no private information is used. They manually process information on over 7,000 public companies using annual CSR reports, data provided on company websites, NGO websites, exchange filings, and publicly available news sources.  This is then converted into standardized set of data points noting everything from the measured output of CO2 emissions and water usage to “true or false” values recording who has policies on HIV/AIDS, increasing the percentage of women managers, to methods of responsible sourcing.  If vendors make note of how or what a company is doing, both positively or negatively, they will also input that data which can then be authenticated or refuted by the company by clicking on that datapoint in the source document.  This unique way of collecting information allows them to audit this information like a financial statement supporting a more holistic due diligence.

Knowing what and how other companies are reporting this type of ESG information will help standardize and guide what goes into CSR reports and improve data analysis.  For instance, if you have a water reduction policy but don’t note it in your CSR report, it will likely not be calculated into your overall score. And that means that it’s likely that your stakeholders, your customers and your industry don’t know about your conservation and efficiency efforts.   And that can hurt your standing in the market.

The video continues to provide more information on

  • How Refinitiv’s data analysis and model works
  • Scoring methodology and categories
  • Controversies within the categories
  • How to use those scores to improve individual company performance and public perception
  • ESG Global Coverage
  • Seeing the actual platform in use

For more information about Refinitiv or if you have any questions for Devon, you may reach out to him directly at:  Devon.Reichelt@Refinitiv.com or go to their website:  https://www.refinitiv.com/en/

The Business Case is Building Itself – Get Ahead of the Curve

 The Business Case is Building Itself – Get Ahead of the Curve
Capital and Talent is Flowing to Companies Focused on SDGs 
A growing body of research shows that companies that measure and manage their sustainability issues are outperforming their peers in the market, attracting / retaining better talent, engaging their customers, decreasing risk and increasing opportunities to grow and enter new markets.  In addition, members of the Millennial Generation are quickly rising up the employment ranks becoming managers, and taking control of their families’ wealth and investment choices — and they are driving demand for sustainable integration and investment opportunities.

 

For the next 15 years, the SDGs will be the primary lens by which this growing pool of capital and talent will examine the companies that they invest in.  Leading sustainable organizations that position themselves to help meet the objectives of th new global goals will increasingly be favored in the market by this growing pool of important players.  ESG criteria and sustainability data are becoming larger factors in where capital flows, where the best talent chooses to work, how companies reputations are shaped, and how investments are valued in the capital markets.

 

Stake a Claim as a Sustainability Leader!

Teleperformance logo

Teleperformance joins the GSC 17 / 17 SDGs Initiative in support of SDG and ! Join
GSC 17 / 17 SDGs Initiative and sponsor one or more SDGs to showcase your leadership. (click here for prospectus,
or contact Louis Coppola (louis.coppola@gscouncil.org) to find out more.

 

SDGs and are about ending poverty and hunger by 2030.
How is your strategy aligned?

The seven targets for SDG 1 address: making sure nobody lives on less than $1.25/day; setting up social floors; ensuring equal access to economic resources, basic services, land and property ownership, natural resources, and technology and financial services; building climate and disaster resilience; providing developing countries with the means to implement policies and programs to end poverty; and accelerating investment in poverty eradication actions.

SDG 1 in Action – 2015 GSC 3S Awards Nominee: Vihara Foundation

This video shows the commissioning of a creative fundraising platform Rock against Poverty to help raise global awareness and funds to pay for real scientific and business enterprise development intervention to counter extreme poverty in rural India (The Vihar Project).

The eight targets for SDG 2 address: ending hunger and ensuring access to safe, nutritious food; ending malnutrition for vulnerable groups, and tackling stunting and wasting for children under five; increasing agricultural productivity and ensuring access to land and other inputs; ensuring sustainable food production systems, and making agriculture more resilient and adaptive to climate and disasters; protecting genetic diversity and sharing its benefits; increasing investment in rural infrastructure, agricultural research and technological development for agriculture; addressing trade distortions; and limiting price volatility.
SDG 2 in Action – DupontDuPont has focused its efforts on developing innovations that will produce more food, enhance nutritional value, improve agriculture sustainability, boost food safety, extend food freshness and reduce waste.

Innovating to feed the world. DuPont committed $10B to R&D, and the introduction of 4,000 new products by the end of 2020. Moving forward with these goals, DuPont has invested more than $1.2 billion in research and development, and has already introduced more than 600 new products – all in 2014. Learn more at Dupont Feeds the World.

Make Your Mark as a Sustainability Leader
Join the GSC 17 / 17 SDGs Initiative!

Join GSC in responding to the new generation of responsible investors, who are “already beginning to alter the corporate landscape,” according to the UN Global Compact.

Tens of trillions of US dollars in assets are represented in the investors mobilized by the Principles for Responsible Investment and Carbon Disclosure Project. “These long-term oriented investors are requesting more and more information on how investee companies are managing environmental, social and governance issues,” UNGC reports. Strong ESG-managing companies stand to benefit the most from this new development era.

Contact Louis Coppola (louis.coppola@gscouncil.org) today to sponsor one or more SDGs by January 31st for 17% off sponsorship rate.

Maung Min appointed to Board of Directors by the Global Sourcing Council during Annual Meeting

NEW YORK, NY (December 15, 2015) – The Global Sourcing Council today announced the appointment of Maung Min to its board of directors, effective immediately. Dr. Min will provide program and education support pertaining to United Nations Sustainable Development Goals (SDGs) agenda.

maung min150x150Maung is an experienced management executive with over 25 years of track record of leading functions and initiatives in the areas of Sustainability, EHS and Supplier Management, IM, Manufacturing, and Quality Systems (including Operations Excellence/Continuous Improvement). He has led initiatives in the Americas, Europe and Asia. Dr. Min has held roles in Italy as well as in Puerto Rico and is passionate working in a global and multi-cultural setting.

More recently, Dr. Min ran the Corporate Sustainability program for a global bio-pharma company where he was instrumental in leading the development and implementation of 7 sustainability goal adopting the triple bottom line concept focusing on environmental, social and economic benefits. He was also the lead driving the company Supplier Sustainability effort incorporating sustainability risks into the overall supplier risk model. Dr. Min represented his company at a number of external industry organizations, including PSCI, and CDP Supply Chain initiative. He helped his company gain external recognition in sustainability ( Company by Corporate Responsibility; CDP Leadership Index), as well.

Dr. Min is also a passionate educator. He serves as Adjunct Associate Professor at CUNY – Baruch College. As a faculty member of Department of Management, Dr. Min teaches Sustainable Business and Supply Chain Sustainability courses at MBA level.

Earlier in his career Dr. Min worked in management consulting with projects in the areas of business process reengineering, operations effectiveness, change management, product portfolio and supply chain management. He also has 10 years in engineering experience as project, process and environmental engineer.

Dr. Min holds a DBA from Grenoble Ecole de Management – a triple accredited university, an MBA from Baruch College, and an MS in Chemical Engineering from Manhattan College. He also lectures and participates in panel discussions in the area of sustainability.

The Global Sourcing Council Launches 17 / 17 Program for SDGs

The Global Sourcing Council announces its 17/17 SDGs initiative to provide a communication platform and to highlight the importance of implementing the United Nation’s SDGs into a business strategy.

NEW YORK, NY (December 14, 2015) – The Global Sourcing Council (GSC) has launched the 17 Weeks/17 SDGs program in support of the Sustainable Development Goals (SDGs) adopted by 193 world leaders at the UN Sustainable Development Summit in September 2015.

GSC’s 17/17 initiative (download Prospectus) provides a platform for businesses to highlight activities around the SDGs in their sourcing and supply chains, with a focus on one SDG per week, for 17 consecutive weeks. This communication effort will educate and inspire real action in sourcing and supply chains around these important global goals. We invite leading sustainable organizations (and those that aspire to be sustainability leaders) to partner with GSC in making this vision a reality.

A key message of 17/17 is that businesses stand to gain from the Sustainable Development Goals. In the long run, businesses cannot succeed unless the world succeeds. More immediately, the SDGs provide a framework for innovation, new markets and new products, and aim to channel both public and private investment toward shared global priorities.

The “business case” for the SDGs includes: unlocking trapped value in emerging and frontier markets; gaining competitive advantage by declaring commitment to the Goals; inspiring employees, clients and communities with the broader vision of the Goals; and strengthening brand equity by taking leadership in sustainable development.

Louis D. Coppola, GSC Board Member and Co-Founder of The Governance & Accountability Institute, said, “The Global Goals are one of the most important considerations for companies developing their long-term sustainability program’s strategies, including for defining material issues, setting goals, engaging with investors and other stakeholders, and making critical resource allocation decisions over the next 15 plus years.”

Coppola added, “Determining which of the SDGs are material to your organization’s sustainability strategy is a critical step for companies that are established leaders in sustainability, or would like to establish themselves as leaders. It’s important to put your stake in the ground early and align your program with the SDGs, in order to succeed in the quickly changing global business environment. Making commitments with one or more material SDGs in your sourcing and supply chains is one of the most impactful ways you can help the world reach these goals by 2030.”

Major companies have already announced commitments on one or more SDGs, such as Philips on health (SDG ), energy (SDG ) and sustainable consumption and production (SDG ), Dell on decent jobs (SDG ), and DuPont on ending poverty (SDG ) and hunger (SDG ).

“The UN has created Goals that are broad and inspirational in nature. The trajectory for business in the 2030 Agenda is to embrace one or more SDGs into business strategies, translate them into operational targets and execute them in a transparent manner,” said Dr. Wanda R. Lopuch, the Chairman of the GSC Council. She added, ”Such a trajectory will result in discovering new markets, developing new products, expediting innovation and securing competitive advantage, all of which tend to result in profitable growth while delivering desired social and environmental outcomes.”

All companies are invited to utilize the GSC 17/17 SDG platform to communicate their experiences, commitments, goals, best practices and stories by sponsoring one or more SDGs that align with their business strategy. Please contact Louis Coppola or Wanda Lopuch to find out more about how you can help GSC educate and inspire action in sourcing and supply chains around the 17 Sustainable Development Goals (SDGs).

The GSC recently became a signatory of the United Nations Global Compact (UNGC), and hosted the GSC 3S Awards for sustainable and social responsible sourcing for 2015 at UN Headquarters in New York City.

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About Global Sourcing Council

The Global Sourcing Council (GSC) is a voluntary, public-private initiative, registered with the USA IRS as a non-profit 501(c)(3) organization. GSC is focused on sustainable, socially responsible sourcing practices. By bringing together businesses, industry organizations, academics and trade representatives of different countries, the GSC provides an open forum for discussion of social, economic and political effects of global sourcing arrangements.

About Sustainable Development Goals

The SDGs – part of the UN’s 2030 Agenda for Sustainable Development – build on the previous eight Millennium Development Goals (MDGs) ending in December 2015. They represent an unprecedented opportunity to bring the countries, business entities and citizens of the world together to embark on new paths to improve the lives of people everywhere. They will also reshape the practice of development globally, including the role of the private sector.

For more information, contact Louis Coppola at +1.646.430.8230 ext 14, or email louis.coppola@gscouncil.org, or Wanda Lopuch at +1.631.398.3366, or email wanda.lopuch@gscouncil.org.