P&G assesses supplier sustainability scheme
Upgraded version of scorecard rolled out for 2011
Procter & Gamble has announced the first year results of its Environmental Sustainability Supplier Scorecard programme, designed to track and encourage improvement on key environmental sustainability measures in the company’s supply chain. The first year focused on assessing whether P&G would receive clear data to measure future improvements and jump-start innovation, and the company found that most suppliers could not only track the requested sustainability measures, but that the process of innovation sharing had begun.
Deployed last year to nearly 400 strategic suppliers, the scorecard is designed to measure performance in three areas: enhancing supply chain collaboration; improving key environmental indicators; and encouraging the sharing of ideas and capabilities to deliver more sustainable products and services to consumers.
“Working with our external partners is clearly critical to realising our long term environmental vision as a company and this scorecard is a helpful tool to facilitate that collaboration,” commented Len Sauers, P&G’s vp for global sustainability.
“This isn’t simply about collecting data,” added chief purchasing officer Rick Hughes. “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 together and reward those who excel.”
Under the scheme, led by the Purchases organisation, suppliers are evaluated and scored from 1-5. Those that show exceptional performance are rewarded, while for those partners that score poorly, the scorecard forms the basis for joint sustainability improvement plans.
P&G has now rolled out an upgraded version of the scorecard for 2011, which can be found at www.pgsupplier.com. The list of participating suppliers has been expanded to approximately 600 and changes to the scheme include a more transparent and consistent rating methodology.