Shanghai starts green supply chain program
Print Edition
IN a bid to use the market’s leverage to promote environmental sustainability, Shanghai has launched a program that calls for enterprises from all industries to work out their own plan on a green supply chain campaign.
The 2016 Shanghai 100+ Enterprises in Green Supply Chain Program launched last week invites multinational companies, state-owned enterprises and private firms in Shanghai to submit proposals of their green supply chain projects to the city’s environmental authorities before March 31 .
Enterprises are encouraged to use their leverage to get their suppliers in compliance with green supply chain standards.
A qualified project should be able to involve at least three of its suppliers in sustainability standards to promote the green supply chain, according to the Shanghai Environmental Protection Bureau.
Authorities will carry out trainings and provide technical support for companies to better implement their plans. The government will select best practices in the end of the year for further promotion.
“Promoting green supply chain management is an effort to use market forces to promote higher environmental standards among enterprises,” said Fang Fang, deputy chief of the Shanghai Environmental Protection Bureau.
“We hope industry bellwethers will play a leading role and prompt suppliers, consumers, industries and the whole society to take part in green development,” Fang told the Green Supply Chain 2016 Shanghai Summit last week.
As the public becomes increasingly aware of environmental issues, the green supply chain is gaining importance in Shanghai.
In 2013, the bureau launched a pilot project on green supply chain management following the guidelines of the China Council for International Cooperation on Environment and Development (CCICED).
With relevant government departments, enterprises, research institutions and social organizations participating in, the project aimed to boost awareness for sustainable development. The capability of enterprises to enact green supply chain management was enhanced through learning from corporation demonstration. The pilot project also set up a pattern and specifications for green supply chain management of various industries.
Through activities of companies, including Bailian Group, Shanghai GM, and IKEA, the project has gained experience for innovative environmental administration and energy conservation and pollution reduction.
“Shanghai’s experience is set to catalyze the development of green supply chain in the Yangtze River Delta Region and even the whole country, contributing to China’s green transformation,” Zhou Guomei, deputy director of the China-ASEAN Environmental Cooperation Center, said at the summit.
Last year, Shanghai launched a campaign to select best practice cases in green supply chain management. Through expert review, on-site assessment and solicitation of public opinion, 14 cases were awarded Green Supply Chain Shanghai Best Practice 2015 during the summit.
“These companies provide vivid examples of how a company can balance profits with environmental sustainability,” Fang said.
Role model
German wholesale and retail giant Metro AG won an award for its effort to reduce negative impact on the environment by upgrading its refrigeration system.
In 2014, Metro China initiated a comprehensive maintenance program for the industrial refrigeration and air-conditioning system in stores, which aims to decrease the leakage rate of cooling agents.
Cooling agent leakage is now down by 40 percent.
“Sustainability has been one of key successes for Metro in China and it is also one way to build the value of our brand,” said Jeroen de Groot, president of Metro China.
Metro is planning to invest a total of 200 million yuan (US$30.4 million) on upgrading cooling agent system to carbon dioxide refrigeration in 30 stores.
Telecom equipment provider Alcatel-Lucent Shanghai Bell Co won the award for integrating sustainability standards into assessment of suppliers.
In 2009, the company adopted EcoVadis Scorecards, a third-party system that helps procurement teams monitor sustainability practices of their supply chains, aiming to improve environmental and social practices of companies by leveraging the influence of global supply chains.
By the end of 2014, the system covered 80 percent of the company’s suppliers in China.
The launch of the green supply chain came as Shanghai embarked on the 13th Five-Year Plan which includes a set of environmental and energy targets and guidelines.
Shanghai has set a goal of cutting down on the density of PM2.5 particles — a major contributor to air pollution — to 42 micrograms per cubic meter by 2020, down from 53 last year.
The city plans to increase 27 square kilometers in its forest coverage and 12 square kilometers in the green space by the end of 2016. At present, city already has 100,000 hectares of forest and woods, and 48,000 hectares of green space in the urban areas.
It will also enhance the protection of the city drinking water sources while renovating water treatment plants and pump stations to step up waste water treatment.
“Despite all the progress we’ve made in the past five years, Shanghai is still facing challenges in environment protection. We need a broader participation from the public and enterprises to promote green development of Shanghai,” said Tang Qinghe, deputy chief of the bureau’s Comprehensive Planning Department, at the summit.
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