Green as a risk reducer

“A focus on cost without an appreciation for environmental impact, resource availability, and social factors expose supply chains and brands to increased risk,” Material Handling Industry’s CEO, George Prest, wrote in a blog in the July 10, 2013 issue of MHI Solutions.

He cited the brand and tiered supply chain reputation damage that followed in the wake of May’s Bangladesh fire and building collapse tragedy as an example. “To stay competitive, supply chains are being redesigned for maximum sustainability, efficiency, and reduced risk,” he continued.

Prest referenced Nike—a manufacturer not immune to brand damage as a result of its suppliers’ environmental transgressions—and its implementation of a new manufacturing scorecard that placed green practices on equal footing with conventional metrics such as cost, quality, and delivery.

He also referenced Walmart’s declaration that a sustainable supply chain is its first priority; Procter & Gamble’s 48 zero landfill manufacturing sites; and said that “General Motors was the first automaker among 40 U.S. corporations to sign a new climate declaration, asserting that responding to climate change is good business.”

It’s refreshing to read other manufacturing-related organization’s recognition of the balancing role of a green approach to manufacturing.

“Bottom line, sustainability is good business,” he concluded.

I couldn’t agree more.

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