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Green Supply Chain Research and Practice

Zhang, Jianyu. June 6th , 2014. Green Supply Chain Research and Practice. Contents. Green Supply Chain (GSC) Management Theories and International Practices CCICED Research on GSC Management and Policy Studies CCICED GSC Policy Demonstration Projects

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Green Supply Chain Research and Practice

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  1. Zhang, Jianyu June 6th, 2014 Green Supply Chain Research and Practice

  2. Contents • Green Supply Chain (GSC) Management Theories and International Practices • CCICED Research on GSC Management and Policy Studies • CCICED GSC Policy Demonstration Projects • Recommendation on the establishment of APEC GSC Cooperation Network

  3. Supply Chain Management Development of global economy Integration of supply chain resources Social division of labor Supply Chain Management Enterprises’ competiveness Expansion of supply chain network Number of suppliers increased

  4. Green Supply Chain

  5. Why Green Supply Chain？ Int’l Trade Requirements Consumer Preference Gov’t Purchasing Requirements Domestic Environmental Laws Global Brand Suppliers Secondary Suppliers Tertiary Suppliers

  6. Why Green Supply Chain matters? Green supply chain Behavior changes among SMEs Improve environmental compliance Energy saving Carbon emission reduction Improve global competitiveness Accelerate transformation to a green economy Create value for enterprises

  7. International GSC Practice

  8. Practice in the PRChina Tianjin Green Public Procurement

  9. CaseStudy-ShanghaiGM Shanghai GM officially launched its Drive to Green strategy in 2008 100 Over 100green suppliers participant today compared to only 8 in 2005. 131 improvement plans were established in 2008. Over 90% were accomplished within the year. 131

  10. CaseStudy-ShanghaiGM Saved: over 17 million watts of electricity 1.4 million cm of natural gas consumption 550,000tons of water 4.34 million tons of emissions The overall revenue of emissions reduction and energy savings is equivalent of 45.76 million RMB

  11. Case Study – Walmart Walmart, the No.1 grocer in the U.S., has a operational footprint of 200,000 tonnes, while the carbon emissions of its entire supply chain could up to 2 milliontonnes. • In the fall of 2008, Walmart announced a set of goals for Walmart’s operations and supply chain in PRC. • Factories certify compliance with local laws by 2011 • Energy efficiency at top 200 factories improved 20% by 2012 • Remove 20million tonnes of greenhouse gases from its global supply chain

  12. Cooperation between Walmart and its suppliers To help suppliers achieve the goals, Walmart has conducted a series of cooperation programs with its suppliers. • Environmental compliance programs • Energy efficiency programs • Supplier development programs • Water management programs

  13. Wal-Mart GSC Achievements By Q1 of 2011, 125 factories reported : 20% improvement in energy efficiency compared to the figures in 2007/ 2008/ 2009 347,000 tonnes of CO2 reduction.

  14. Case Study – Tianjin Green Government Procurement 23% 20% Green government procurement spending Products with environmental labeling

  15. Case Study – Tianjin Green Government Procurement • Procurement of electronic products • 1,947,000 kWh electricity • 778.8 tonnes of standard coal • 529 tonnes of dust • 1,941 tonnesCO2 • 58 tonnesSO2 • 29 tonnesNOx • Procurement of automobiles • 44 tonnesCO • 3 tonneshydrocarbons • 2,418 kg Nox • 778 tonnesCO2 • 345,000 liters of fuel

  16. CCICED Green Supply Chain Special Policy Study Policy recommendations “Developing Green Supply Chain Management Practices and Industry Criteria for Green Supply Chain Evaluation... , strengthening the cooperation between sectors, between enterprises and the government, NGOs and other external groups, implementing regional or local pilots where there is the basis of green supply chain, and promoting the sustainable development of green supply chain... “ CCICED Green Supply Chain Special Policy Study was launched in 2011.

  17. CCICED GSC Policy Demonstration Projects In December 2012, Tianjin and Shanghai respectively delivered their GSC policy demonstration applications to CCICED and were granted approval In March 2013, the CCICED GSC pilots in Tianjin and Shanghai were officially launched In November 2013, the leader of MEP gave instruction to improve GSC studies and its pilots

  18. Tianjin GSC Demonstration Projects Features and Highlights Top-level design; lead by the top city government leaders Promote green public procurement to drive green consumption Start from the building industry; tap the huge potential Underscore market system development Promote green trade through GSC in conjunction with Tianjin free-trade zone application Make full use of national finance pilot policy to develop green finance

  19. Tianjin Government Green Procurement • Favorable policy environment, green public procurement ratio ranks among the tops in the nation • Stipulated detailed work plan and ambitious targets; green product public procurement ratio up from 76.8% in 2013 to 90%+ • Introducing international standards • Promote green trade through public procurement

  20. Tianjin GSC Center Tianjin Low-carbon Development and Green Supply Chain Center • First integrated service platform for GSC management in PRC; key achievement of CCICED GSC program • Tianjin GSC pilot comprehensive planning provides policy assurance and market support • Already in operation, providing support for international cooperation and peer organizations development • Services including green certification, green credit rating etc.

  21. Shanghai GSC Demonstration Projects Background and Characteristics Shanghai is the economic center of PRC Solid industrial base Industry chain covers Yangtze River Delta and extends to the whole nation Many enterprises with high environmental responsibility, strong economic strength and willingness of innovation Enterprises has huge Influences Upstream and downstream enterprises are closely linked

  22. Shanghai GSC Demonstration Projects Three demonstration enterprises

  23. IKEA – Water Efficiency Improvement

  24. Shanghai GM 2013 progresses • GM initiated GSC project from above 4 perspectives • 33 suppliers participated in GSC project • 19 suppliers participated in the review of environmental protection plan for new build plants • over 60 suppliers participated in the capacity training 2012Shanghai GM GSC project: Saved 180,000 tonnes of water and 105.3 MWH.

  25. BailianGroup Goals • Started from Lianhua Supermarkets to establish GSC management mechanism, and formulate a Guideline for Green Store Construction and Management • Improve awareness and capacity of GSC management • Lunch performance evaluation based on the implementation of Guideline for Green Store Construction and Management, and improve the Guideline 2013 Progresses • A green store on Shuidian Road completed. • senior level managers of Lianhua Supermarket trained. • Completed field visiting to 2 suppliers

  26. Next Step: APEC GSC Network

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