Procter & Gamble (P&G) is to make its Excel-based environmental sustainability scorecard analysis tool freely available to other companies. The tool measures environmental sustainability metrics across the supply chain to identify progress and opportunities for improvement.
P&G is hoping that giving the tool away will encourage other companies to improve their environmental footprint because they won’t have to invest in any analysis software. “We’re taking every step we can to help others make their supply chain more sustainable,” said Larry Loftus, Director of Purchases Capability & Strategy and lead designer of the scorecard. “We believe we have a useful process and tools and we want others to benefit from that.”
The tool, together with training modules, is available here.
The Scorecard Analysis Tool is the latest part of P&G’s Supply Chain Environmental Sustainability Scorecard to be made available. P&G has been using the Scorecard for some time to improve the environmental footprint of its supply chain as well as encouraging suppliers to make environmental improvements in their own supply chains. The Scorecard measures absolute or intensity improvements in nine key metrics, including energy use, water use, waste disposal and greenhouse gas emissions, on a year-to-year basis. Its results affect a supplier’s rating, which can impact future business with P&G.
P&G has also reported its first year-on-year data analysis from using the tool, which revealed that:
The greatest improvements in the Company’s environmental footprint came with its logistics and chemicals suppliers.
Nearly half of the companies earning the highest rating came from Europe.
Suppliers from developing markets such as China, India and Brazil tended to show the most improvement, with US suppliers not far behind.
The two measurable areas with the greatest improvement were Hazardous Waste and Water Usage. Direct Greenhouse Gas Emissions (Scope 1) and Fuel Energy were tied for third.
Overall, when combining all suppliers and categories, there was an improvement in 55% of the measurable categories.
For P&G the Scorecard is one aspect of a sustainability effort across the company that has led to nearly $1bn in bottom-line operational savings. Making the Scorecard available to other companies may well help kick-start similar efforts elsewhere.
P&G reports that feedback from its suppliers ‘remains encouraging’. I guess the impact on suppliers largely depends on how the Scorecard is implemented. It really needs to be seen as a means to encourage suppliers rather than a stick with which to beat them. Alongside its sustainability assessment P&G offers its suppliers operational/technical support, learning forums, including the opportunity to learn from other P&G external business partners, and, if asked, strategy and policy idea exchange sessions with senior level P&G sustainability leaders.