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07/09/2009
Why should companies suddenly be interested in monitoring and reducing their own CO2 emissions?
Klaus Ballas: Global efforts to produce an industry standard for CO2 balancing are at an advanced stage. At the same time, international industrial and commercial concerns have adopted the idea, and are now busy trying to measure and reduce their own CO2 emissions along the entire value chain. A number of innovative projects are being applied in Germany. One of the most ambitious is the Product Carbon Footprint Projekt, which involves some illustrious names: dm drogerie markt, DSM, Henkel, REWE, Tchibo, Tengelmann, T-Home and Tetra Pak. It is only a matter of time before their suppliers will be required to reveal their CO2 statistics and capacity in the future, to compete for business.
Doesn't that just create more costs and should this not be avoided for as long as possible?
Klaus Ballas: No, climate protection is an economic opportunity. Companies that make significant reductions to their supply chain CO2 emissions will profit from a long-term increase in efficiency.
Could you explain?
Klaus Ballas: Companies that reduce transport kilometres and packaging are not only climate friendly; they are also more economically efficient. However, it is important that people continue to think further ahead, and that they are not just contenting themselves with restructuring their logistics. Relative to the CO2 emissions produced during the entire production cycle, logistics usually plays a minor role. This can lead to the wrong decisions. A holistic approach is essential, preferably within the framework of a Green Supply Chain Scorecard.
Wal-Mart has already defined specific targets for its scorecard. Hence, they have committed themselves to increasing the energy efficiency of existing sites by 20 percent and they intend to make their fleet of trucks 25 percent more energy efficient. Wal-Mart also works intensively with the Carbon Disclosure Project. That means that the retailing group has asked its suppliers to reveal and actively reduce their CO2 emissions. German retailing concerns with soon be compelled to follow suit.
Will the CO2 reductions have an effect on turnover?
Klaus Ballas: Yes, they will increase turnover! This is the conclusion of a study that we are currently conducting, together with the Deutschen Gesellschaft für Management Forschung (German Society for Management Research). CO2 reduction leads to the development of new products. These products will appeal to a more informed consumer group. This will provide an opportunity for branded products to distinguish themselves from discount products. The British textile retailer Marks & Spencer has analysed its own ‘carbon footprint’ and also helps its customers reduce the greenhouse effect by printing reminders on the labels that certain textiles should only ever be washed at 30°C. Measures like these help to create a homogenous corporate image, which, in turn, increases the turnover.
What has to be done exactly?
Klaus Ballas: The first step is transparency, in order to elicit information from the entire supply chain. Where along the supply chain are the greenhouse gases produced? How do the individual products and services contribute to the CO2 emissions? Where are the emissions in relation to existing regulative standards? J&M has developed the Green SCAN with a view to answering such questions. The structured procedure enables the company to define and develop their own CO2 emission measures, according to their individual Green SC scorecards. The Green Scan identifies fields of operation and suggests the way for new developments, offering significant scope for the future.
For further information, please contact: Klaus Ballas, Partner, J&M Management Consulting, telephone +49 (0) 621 12 47 69 0 or via e-mail k.ballas
jnm.com.
How can companies prepare themselves for the impending CO2 balance regulations?
The PAS 2050, a directive for the determination of a product or service’s 'carbon footprint', was passed on 29th October 2008. This is the first vigorous standards system for the documentation of CO2 emissions throughout the entire life cycle of a product. The PAS 2050 directive, which was drafted by approximately 1,000 industrial experts, consequently deserves attention. The ISO standards 9001 and 14001 were also based on the PAS guidelines.Why should companies suddenly be interested in monitoring and reducing their own CO2 emissions? Klaus Ballas: Global efforts to produce an industry standard for CO2 balancing are at an advanced stage. At the same time, international industrial and commercial concerns have adopted the idea, and are now busy trying to measure and reduce their own CO2 emissions along the entire value chain. A number of innovative projects are being applied in Germany. One of the most ambitious is the Product Carbon Footprint Projekt, which involves some illustrious names: dm drogerie markt, DSM, Henkel, REWE, Tchibo, Tengelmann, T-Home and Tetra Pak. It is only a matter of time before their suppliers will be required to reveal their CO2 statistics and capacity in the future, to compete for business.
Doesn't that just create more costs and should this not be avoided for as long as possible?
Klaus Ballas: No, climate protection is an economic opportunity. Companies that make significant reductions to their supply chain CO2 emissions will profit from a long-term increase in efficiency.
Could you explain?
Klaus Ballas: Companies that reduce transport kilometres and packaging are not only climate friendly; they are also more economically efficient. However, it is important that people continue to think further ahead, and that they are not just contenting themselves with restructuring their logistics. Relative to the CO2 emissions produced during the entire production cycle, logistics usually plays a minor role. This can lead to the wrong decisions. A holistic approach is essential, preferably within the framework of a Green Supply Chain Scorecard.
Wal-Mart has already defined specific targets for its scorecard. Hence, they have committed themselves to increasing the energy efficiency of existing sites by 20 percent and they intend to make their fleet of trucks 25 percent more energy efficient. Wal-Mart also works intensively with the Carbon Disclosure Project. That means that the retailing group has asked its suppliers to reveal and actively reduce their CO2 emissions. German retailing concerns with soon be compelled to follow suit.
Will the CO2 reductions have an effect on turnover?
Klaus Ballas: Yes, they will increase turnover! This is the conclusion of a study that we are currently conducting, together with the Deutschen Gesellschaft für Management Forschung (German Society for Management Research). CO2 reduction leads to the development of new products. These products will appeal to a more informed consumer group. This will provide an opportunity for branded products to distinguish themselves from discount products. The British textile retailer Marks & Spencer has analysed its own ‘carbon footprint’ and also helps its customers reduce the greenhouse effect by printing reminders on the labels that certain textiles should only ever be washed at 30°C. Measures like these help to create a homogenous corporate image, which, in turn, increases the turnover.
What has to be done exactly?
Klaus Ballas: The first step is transparency, in order to elicit information from the entire supply chain. Where along the supply chain are the greenhouse gases produced? How do the individual products and services contribute to the CO2 emissions? Where are the emissions in relation to existing regulative standards? J&M has developed the Green SCAN with a view to answering such questions. The structured procedure enables the company to define and develop their own CO2 emission measures, according to their individual Green SC scorecards. The Green Scan identifies fields of operation and suggests the way for new developments, offering significant scope for the future.
For further information, please contact: Klaus Ballas, Partner, J&M Management Consulting, telephone +49 (0) 621 12 47 69 0 or via e-mail k.ballas
jnm.com.