P&G gets supplier ideas for sustainability

8 April 2011

8 April 2011 | Lindsay Clark

Procter & Gamble (P&G) is commencing a number of sustainability projects suggested by its suppliers following its appeal for ideas.

Innovative proposals have been put forward by four out of every 10 suppliers requested to complete a sustainability scorecard for the company.

Launched last year, the scorecard is designed to assess the environmental footprint of P&G vendors. It also measures energy and water use, waste disposal and greenhouse gas emissions - as well as requesting suggestions about how to improve sustainability in the supply chain. A total of 383 strategic suppliers had a year to complete the scorecard and 81 per cent did so.

Of those, around 40 per cent offered at least one innovation, the company said. Many of these have become projects, including a chemical supplier that has begun work with P&G on renewable energy, renewable materials development and ways to reduce emissions.

For 2011, P&G plans to expand the list of suppliers and agencies it asks to complete the scorecard to about 600, and has made a few changes based on their input. These include:

  • A clearer process to allow partners to exclude measures that do not apply to them.
  • A more transparent and consistent rating methodology.
  • The ability to compare year-on-year improvement using various data formats.
  • The ability to reward year-on-year improvement regardless of data format or scope preference.

The first year of the system has demonstrated that most suppliers can track the requested key sustainability measures and that the process of innovation sharing had begun, P&G said.

“This isn’t simply about collecting data,” said Rick Hughes, P&G’s chief purchasing officer. “The scorecard is the right tool to give us that snapshot across our supply chain so we can identify where to focus our collective supply network sustainability efforts, develop ideas to work on together, and reward those who excel.”

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