coLumNS
Carbon and you
One Step Ahead of Green
t the 15th United Nations Climate were also no longer carrying around branded bags
A
Change Conference (COP15), either. Obviously, some groups compensated by
analysts and negotiators were cit- putting out their own brand of material bags. Tak-
ing China and the United States ing that a step further, one needs little imagination
as the primary actors who would to understand how a ban on paper cups would im-
create a binding climate change agreement. In re- pact the likes of McDonald’s or Starbucks, which
ality, the COP15 conference results are unlikely is perhaps why Starbucks has under their “Shared
to have much direct impact on those of us out- Planet” campaign begun to advertise that by 2015
side the negotiating rooms. However, the results they will have an answer for the paper cup. They
of these negotiations are really a moot point, as hope this will put them ahead of the curve, when
the supply chain already faces serious issues far disposable cups incur the wrath of a political ban.
more tangible to business models when compared Second, while the recession may have eased price
to carbon trading, emission caps, or polar bears. pressures on raw inputs, it is important to remem-
Plans to address such economic and environmen- ber that little more than a year ago prices for energy,
Richard Brubaker is the Founder
of Collective Responsibility (www.
tal sustainability issues in relation to material usage, commodities, and labor were at all time highs, and
collectiveresponsibility.orrg), Vis-
energy efficiency, labor standards, waste manage- will return to those levels again. So, with that in
iting Professor of Sustainability
at CEIBS, and Editor of Cleaner
ment, and product life cycles should not wait for mind, by leveraging sustainable practices and look-
Greener China (www.clean-
the next climate change ing at sustainable ma-
ergreenerchina.com).
symposium. Organiza- terials, many firms will
tions risk seeing their find themselves captur-
brands diminished ing costs in materials,
through increased con- labor, and transporta-
sumer awareness, fines tion. Process firms like
as a result of increased Nike, Haworth, Xerox,
law enforcement, and and Interface floor-
shutdown as govern- ing have all embedded
ment policies changed into their supply chain
from GDP at any cost from the design phase
to high value GDP. So, by looking at how the
what is a firm to do? materials and processes
How should firms re- act in the face of an emo- they use to produce their goods with lower envi-
In reality,
tional argument (over carbon) that is basically in- ronmental footprints, and in ways that their prod-
the COP15
definable in their business model or typical set of ucts can be reused and recycled more easily.
constraints? While for many managers the current conver-
conference
First, firms need to understand that outside of sations on carbon may be intangible, and easy to
results are
market pressures to “green” processes and facili- ignore, the real drivers going forward will be more
unlikely to
ties, pressure will also come from governments at substantial. It will take the form of higher direct
all levels looking for answers to problems they face. costs as regulations induce higher standards, and
have much This will increase the regulatory risk that firms are fines grow in size and frequency. It will take the
direct impact
exposed to. Low hanging fruit for some may be the form of reduce revenues as consumers walk away
auto industry and disposable products. 18 months from firms whose profits do not meet their expec-
on those of us
ago when China changed the law and banned ul- tations, rational or not. And finally, it will take the
outside the
trathin plastic bags, retailers had to change the way form of higher indirect costs, as firms are forced to
negotiating
they did business. This changed the entire market- retool themselves and their products should they
ing scheme of companies – from Carrefour to the fail to understand that while this is an emotional
rooms local Kedi; even though they no longer had to spend topic for some, it will clearly translate into an eco-
money purchasing bags to give away, customers nomic impact for others.
18 JANUARY/FEBRUARY 2010 www.chainaonline.com
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63