Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP 1 TOSCA Towards sustainable supply chains through a common approach for company strategic work and daily operations LCM 2009 Ulrika Palme

Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP2 The TOSCA project Funded by the EU LIFE+ Programme Runs Co-operation between AkzoNobel, SCA Personal Care and Chalmers University of Technology Visit or

Objectives Facilitate work on: Data exchange, communication and co-operation for sustainable development in supply chains Development of strategies, communication and application of tools for sustainable development Approach Bottom up: facilitate the integration and communication of sustainability aspects and knowledge in daily operations Top down: facilitate development, communication and implementation of sustainability strategies Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP3

Scope Construction of a framework for corporate work towards SD -Information from literature, internet, corporate documents and interviews -Analyzes and recommendations of approach to take -Presentation of the resulting framework at the Tosca internet site Dissemination and implementation of the framework -Making people within the participating organizations and outside aware of the project -Seminars, lectures and workshops on the framework -Implementation of the framework in businesses More learning… -Documentation and presentation of experiences made in the implementation phase Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP4

Environmental Systems Analysis Division within the Dept of Energy and Environmnet at Chalmers University of Technology, Gothenburg, Sweden Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP5 Environmental assessment Technological change Industrial environmental practice ESA in numbers 11 senior academics 12 doctoral students 2 technicians 1 admin 13 dissertations 8 licentiates 2 bachelor level courses 8 advanced courses master projects/yr

The participating companies AkzoNobel –The world’s largest paints and coatings company and a major producer of specialty chemicals –About employees and € 15 billion in revenue SCA –A global consumer goods and paper company that develops, produces and markets personal care products, tissue, packaging solutions, publication papers and solid-wood products –About employees and € 11,5 billion in revenue Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP6

January – August 2009 Inventories and assessments made of strategies in the work with sustainable development tools and data used to assess and track sustainability aspects communication practices concerning sustainability information Focus on value chain relevance Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP7

SD strategies at AN: the main actors Sustainability Council : 11 persons including CEO, business unit managers and others Director of Sustainability Sustainability focal points (1/BU) Sustainability in sourcing team HSE-S department Sustainability in Communications Carbon policy team Technology and Engineering SD group Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP8

SD strategies at SCA: the main actors SCA group level –The Environmental Committee and the CSR Committee –Environmental networks –CSR networks Business group level (SCA Global Hygiene Category and SCA Personal Care Europe) –Cross-functional task force at Personal Care for development and implementation of environmental strategy –Environment & Product Safety Department –QRESH (Quality, Risk, Environment, Safety and Health) are coordinators at the facilities Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP9

Results tools and data Management: EMS, indicators –Value chain: Customer audits, Supplier standard – environmental and social requirements on suppliers Assessment: LCA, carbon footprints, EIA, risk and safety assessments –Value chain: Haulier evaluations, Supplier audits and assessments Data management: internal data bases (LCA and safety sheets) –Value chain: Supplier environmental questionnaire, Societal waste management models and trends Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP10

Results communication: AN Internal –Internal website –Newsletters –Meetings General external –Brochures –Annual report –Web sites –Press releases –Newsletters and news magazines To customers (Eka BU) –Technical product data –Handbooks –Safety data Sheets –EPD –Eka facts (a parallel system to the Safety Data Sheet) From suppliers –LCA data –Audits, questionnaires Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP11

Results communication: SCA Internal –Internal website –Newsletters, fact sheets –Meetings –Training General external –Brochures –Annual report –Web sites –Press releases –Newsletters To customers –Case specific To consumers –Eco action From suppliers –LCA data –Audits, questionnaires Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP12

Some conclusions Strategy first! Sustainability should be a driver for innovations A limited number of tools Expertise within the company Internal communication before external communication More and better external communication (AN) Life cycle thinking to support value chain thinking More and better co-operation with suppliers and customers (- how?) Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP13

Recommendation for the framework A transparent process aiming at all employees being familiar with the concept SD and with clear communication on contributions and progress To be extended throughout the value chain? Sustainability in the supply chains – analysis of current work practices and way forward, LCM , UP14