Fields of Action: Supply chains, commodities and materials
- Impact factors on biological diversity
- Drivers of Business Cases
- Areas of Operation
- Tools
- Management Cycle Stages
The types of commodities and raw materials used also impact biodiversity. For example the acquisition of minerals, energy, agricultural products, fish, wood, medicinal herbs or plants – genetically modified or not – impacts regions that often do not belong to the businesses benefiting from them. Such unintended consequences can be reduced or avoided altogether by implementing the appropriate supply chain management. The supply chain management is the starting point for regulating extraction methods as well as the quantity and quality of purchased materials. Similarly, this approach is applicable to the service sector. To a great extent this industry also uses raw materials such as paper and goods whose production can positively or negatively impact biodiversity.
Impact factors on biological diversity
Biodiversity includes the diversity of ecosystems and species as well as the genetic variation within the species. Biological diversity is the basis for a number of different services for people and the economy.
Habitat transformation
Space required for production
Climate change
Power demand and CO2 emissions
Reduction of carbon sinks in production of raw materials
Invasive species (Neobiota)
Cultivation of new, non-native resources
Overexploitation
Pollution
Overfertilisation
Waste water
Best Practice Examples: Der Grüne Punkt - Duales System Deutschland - Agenda for sustainable packaging
DSD is concerned about the packaging life cycle and is cooperating with many manufacturers to develop a way to keep the packaging materials even longer in the business cycle (cradle-to-cradle). With the company’s Environmental Success Report, DSD has been able to collect information on its environmental impact, as well as gather specific indicators on the further development of packaging recycling. DSD has joined forces with selected partners from the retailing, filling and package manufacturing sectors to set up the “Sustainable Packaging Agenda” pilot project.
Der Grüne Punkt – Duales System Deutschland GmbH (DSD)
Drivers of Business Cases
More permanent measures are those that simultaneously make a direct contribution to a company’s success while contributing to the conservation of biological diversity. In such cases a “business case for sustainability” or, more specifically, a “business case for biodiversity” is referred to.
A business case for biodiversity can be achieved through targeted, voluntary biodiversity conservation measures that go beyond the legal requirements, and work to strengthen a company’s competitive advantage. This is often aided by intelligently and efficiently complying with existing government regulations, such as wastewater treatment, which has positive effects on biodiversity.
The success of a corporate biodiversity management is linked to changes in one or more success-related variables called business case drivers.
Costs
Cost reduction by long-term supplier relationships (biodiversity-oriented supply chain management)
Cost reduction by taking advantage of new sources of income (for example, subsidies for using resources from traditional cultivation)
Best Practice Examples: Der Grüne Punkt - Duales System Deutschland - Agenda for sustainable packaging
DSD is concerned about the packaging life cycle and is cooperating with many manufacturers to develop a way to keep the packaging materials even longer in the business cycle (cradle-to-cradle). With the company’s Environmental Success Report, DSD has been able to collect information on its environmental impact, as well as gather specific indicators on the further development of packaging recycling. DSD has joined forces with selected partners from the retailing, filling and package manufacturing sectors to set up the “Sustainable Packaging Agenda” pilot project.
Der Grüne Punkt – Duales System Deutschland GmbH (DSD)
Sales and Price
Increasing turnover by passing on lower costs
Risk mitigation
Risk of rising costs or the loss of non-renewable production factors such as fertile ground or fresh water
Reputation and Brand Value
Reputation gain due to the usage of biodegradable materials
Innovation
Chance for usage of new (and cheaper or better) materials
Business models
New financial models in the finance sector through differentiation or region
Best Practice Examples: Beraca - Supply Chain Management
In 2010, Beraca established the first sustainable dialogue with its suppliers (associations and cooperatives). All community leaders were brought to the city of Belem, in the state of Pará, for two days of information exchange among its own leaders and employees from all departments of the company (manufacturing, quality control, purchasing, logistics, and others).
Best Practice Examples: oekom, a pioneer within the media industry - Green Publishing
oekom is aware of its role as a pioneer and multiplicator for sutainable management within media industry. With its initiative „ Nachhaltig Publizieren – Neue Umweltstandards für die Verlagsbranche“ („Green Publishing – New environmental standards for media industry“) advocated by the Federal Environment Ministry, oekom examines in cooperation with the ifeu – Institute for Energy and Environmental Research Heidelberg, the Institute for Ecological Economy Research (IÖW) and the Frankfurt Book Fair the whole supply chain. This enables oekom to identify potentials for improving its ecologically sound production by examining everything from paper production to the printed book. The results are discussed within different forums with a great specialist audience.
Areas of Operation
Areas of operation in corporate structures organise the various fields of action in corporate biodiversity management. As is made clear through the cross-sectional nature of corporate biodiversity management systems, it is often possible and practical for departments to cooperate together.
Procurement
Approaches:
Supply of materials and services
Goals:
Long-term security of raw materials supply Reduction of procurement costs through new materials Long-term relationships with suppliers
Best Practice Examples: Axel Springer - Green supply chain management
As part of its supply chain management programme, Axel Springer, a German publisher, uses ecological criteria to select its suppliers. For paper manufacturers, the criteria specify that they:
- must not harvest more wood than can be grown again,
- must use the forest in a way that does not endanger animal and plant species,
- should, as a timber buyer, conduct eco-monitoring,
- should provide the necessary ecological expertise (for example, for forestry workers),
- respect the native population (for example, the Sami),
- should instruct the public about ecological progress and problems.
Axel Springer AG
Best Practice Examples: Sekisui House Ltd. – Indigenous plants for humans and animals
Sekisui House Ltd. promotes the “Gohon no ki” gardening concept, which is designed to help maintain ecosystems by planting indigenous trees to attract local wildlife. Planting trees not only improves the aesthetics of the property, but it attracts wild birds and butterflies - creating a small ecosystem. This supports a network for interacting with the surrounding natural environment and has a positive effect on the quality of life for the local residents.
SEKISUI HOUSE, Ltd.
Best Practice Examples: UPM, the Otto Group and Axel Springer – From the forest to printing products
An example of such a sustainable supply chain management policy is the cooperation between the Otto Group, Axel Springer, and UPM, a forestry company. This allows wood to be traced back from the finished printing product to the forest the wood came from. Company Profile: UPM, Otto Group, Axel Springer
Production
Approaches:
Location of material use
Goals:
Substitution of previous raw materials with ecologically sustainable materials Lowering of raw material costs through dematerialisation Reduction of juvenile fish catch so that enough fish reach maturity
Marketing
Approaches:
Marketing of used materials or services of product
Goals:
Reputation und product design as arguments in procurement marketing
Sales and Distribution
Approaches:
Delivery of materials
Goals:
Combat the dispersal of alien species in order not to preserve company’s own agricultural, forestry and fishing production
Best Practice Examples: Puma AG - Sustainability and transparency throughout the supply chain
Puma AG, a leading global sportlifestyle company, is an experienced player in supply chain management. In an effort to create transparency in its own business and sustainability reporting, it has committed to working closely with its suppliers. With the Global Action Network for Transparency in the Supply Chain (GANTSCh) Puma has been working with more than 30 of its suppliers since 2006 to build up equal partnerships as well as provide trainings and coaching to build capacities for sustainable operation.
Puma
Best Practice Examples: Der Grüne Punkt - Duales System Deutschland - Agenda for sustainable packaging
DSD is concerned about the packaging life cycle and is cooperating with many manufacturers to develop a way to keep the packaging materials even longer in the business cycle (cradle-to-cradle). With the company’s Environmental Success Report, DSD has been able to collect information on its environmental impact, as well as gather specific indicators on the further development of packaging recycling. DSD has joined forces with selected partners from the retailing, filling and package manufacturing sectors to set up the “Sustainable Packaging Agenda” pilot project.
Der Grüne Punkt – Duales System Deutschland GmbH (DSD)
Research and Development (R&D)
Approaches:
Material optimisation
Goals:
Substitution of previous raw materials through ecologically sustainable materials in order to acquire new customers New fishing methods to reduce bycatch so that catch quota are not exhausted
Human Resources
Approaches:
Avoidance of allergy-causing materials
Goals:
Reduction of accident risks through the minimisation of hazardous materials
Tools
Corporate biodiversity management not only requires scientific and planned approaches, but also environmental management business methods.
For instance, the biological diversity of an area can be modelled with the help of regional surveys and field mapping. These evaluations can then become part a business’ decision-making and management processes.
Specific methods for corporate environmental management have not been readily available in the past. Furthermore, these tools can only be roughly assigned to phases of the management cycle, because some of them can be used in more than one of the phases. For example, “indicators and key ratios” are both an important part of determining the current state of biodiversity (for screening and success measurement) but are also the basis for planning future programmes.
The selection and usability of a tool depends on the function of the departments involved, the business case driver and the intended effect on the impact factors that, in turn, affect biodiversity.
In the following section the way a variety of tools can be applied to biodiversity will be specified.
Supplier evaluation
In the following fields of action this tool can be used:
Best Practice Examples: Otto Group – Supply chain management
The Otto Group shows how commercial enterprises can have a positive impact on raw material production. For example, the company promotes the sustainable production of cotton in Africa by controlling its product line and ecologically managing their supply chain. In addition, for the production of furniture, the Otto Group procures its wood using a strategy that hinders the use of endangered wood species and timber illegally logged from forests.
Environmental impact assessment
In the following fields of action this tool can be used:
Additional information about Environmental impact assessment
Checklists
In the following fields of action this tool can be used:
Management Cycle Stages
Using a systematic management “plan-do-check-act” cycle to implement a corporate biodiversity management process allows for proper business orientation, for example, as is used when part of the Eco-Management and Audit Scheme (EMAS) or ISO 14000.
Finding the business-specific relationship between company and biodiversity is, however, made more difficult by the complexity and extent of biodiversity (ecosystem, species, and genetic pool). The criteria “rareness” and “endangerment” of species and habitats act as a point of orientation. Aids in determining such threats to biodiversity such as the “Red List”, the European Union’s Habitats Directive along with the EU’s Birds Directive and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Scientific expertise is often required in cases where specific plans are made. This is an area where local environment and nature conservation groups can provide businesses with technical know-how, representing an opportunity to deepen the cooperation with regional NGOs.
Screen - S
The following tools are available during this phase:
Best Practice Examples: oekom, a pioneer within the media industry - Green Publishing
oekom is aware of its role as a pioneer and multiplicator for sutainable management within media industry. With its initiative „ Nachhaltig Publizieren – Neue Umweltstandards für die Verlagsbranche“ („Green Publishing – New environmental standards for media industry“) advocated by the Federal Environment Ministry, oekom examines in cooperation with the ifeu – Institute for Energy and Environmental Research Heidelberg, the Institute for Ecological Economy Research (IÖW) and the Frankfurt Book Fair the whole supply chain. This enables oekom to identify potentials for improving its ecologically sound production by examining everything from paper production to the printed book. The results are discussed within different forums with a great specialist audience.
Check - C
The following tools are available during this phase:
