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The second day of ESG procurement conference provided more interesting insights from ESG and procurement professionals.
In this post, you will find the key highlights about day 2 of the event. You can read day 1 highlightshere.
Shasta O’Loughlin, the Head of ESG at KMD Brands, emphasized that expertise in ESG does not solely evolve from educational qualifications. Instead, it comes from a understanding of business operations coupled with the ability to integrate sustainability into various processes. She highlighted Oboz one of their footwear brands impressive commitments to planting four million trees for every pair of footwear sold. Shasta also recounted a challenging period when KMD Brands faced negative publicity. The issue arose when a supplier in China sub-contracted work to North Korea. KMD Brands immediately terminated their agreement with the supplier. To address the situation and prevent similar occurrences, Shasta outlined the steps that KMD Brands took including conducting a thorough review of processes, reduced the number of steps in their supply chain to improve visibility and strengthened long-term supplier partnerships through third-party audits. KMD are now a B Corp.
Alison Rahill and Laura Giassetti representing ACAN, emphasize the critical importance of infusing purpose into procurement processes. One of their key focus areas is tackling modern slavery within supply chains, an issue that demands thorough due diligence and transparent governance. They also addressed the challenges of governance in sustainable procurement, highlighting the need for robust policies and procedures to ensure both ethical and environmental compliance
Julien Langlet affiliated with Bendigo and Adelaide Bank, identified several key challenges facing today’s businesses, notably in governance, baseline measurement, resourcing, and change management. To address these issues, Langlet proposed a series of innovative solutions. He recommended adopting a benefit methodology design principle to provide a structured approach to governance. Additionally, he emphasized the importance of data analytics for actionable insights and suggested using third-party metrics, such as those from Supply Nation, for external validation. Langlet cited a case study from Bendigo Bank, noting that just 5% of their scope 3 suppliers contribute to half of the bank’s total carbon emissions. By targeting efforts towards these suppliers, the bank has successfully reduced its carbon footprint significantly over the past two years
Sujata Karandikarof CBRE Asia Pacific, advocated for the integration of sustainability goals into procurement strategies, citing the example of Barry Parkin, CPSO at Mars. Mars was a pioneer in recognizing sustainability as an integral part of procurement by creating the role of Chief Procurement and Sustainability Officer. This move was motivated by the realization that only 6% of their carbon emissions came directly from operational processes, while a staggering 94% were contributed by their scope 3 suppliers. Karandikar emphasized the necessity of building a compelling business case to ensure that sustainability considerations are integral to procurement decisions and processes.
Sharon Grey representing CPB Contractors, highlighted the company’s strong commitment to supporting Indigenous businesses. As part of this commitment, CPB initiated an Indigenous Trainees Program, through which 16 Indigenous individuals were awarded a Certificate 2 in Civil Engineering. The company takes great pride in its contributions to society, particularly in the realm of empowering Indigenous communities.
Guenter Haber -Davidson from Davidson’s Water Group, shed light on alarming water wastage issues in Australia. For instance, he noted that leaks from tap water over a two-year period could fill 17 Olympic-sized swimming pools. Additionally, wasteful practices like thawing frozen food under a running tap contribute to the problem. Guenter emphasized that many such issues can be remedied through automation tools. By implementing metering and data analysis, Davidson’s Water Group has managed to reduce total water usage by 14% to 15%, a significant achievement in water conservation.
Julian Vega Gregg, representing JLL, shared that the company’s carbon offset was less than 5% in 2018. In a bold move towards sustainability, JLL has established ambitious targets: a 51% reduction in scope 1, 2, and 3 emissions by 2030, and 95% reduction by 2040. Gregg also emphasized the importance of actionable data, stating that without meaningful actions, even the best data has zero value and yields no results.