HGC News Note 060606

“Leave Your Carbon Footprint At Home” was the heading of an article in the travel section of a recent Sunday newspaper. The spill in the Gulf is six weeks old and barely controlled. Are you sensing the approaching perfect storm in environmental regulations?

Are you too small to be concerned? 

When it comes to environmental requirements most small companies see these as something to be avoided and have failed to recognize the strategic value these requirements can provide. If you are below the radar screen and have no competition that might be one approach. Companies who recognize that staying in the pack provides some protection are doing the minimum to avoid trouble. They know that the customer (or rather the loss of one) is a bigger threat to their business than the regulatory agencies. The leaders have crafted strategies that are not reactive and are quietly changing the marketplace.

Please, contact me if you need additional information on any of these news items

HGC News Note 052510

 

What are your customers or competition doing on the environmental front?

 

Supply chain information    While Walmart was not the first corporation to require suppliers to provide environmental information, it is probably the most noteworthy. Walmart recently reported five years of progress including progress on its goal of removing 20 million metric tons of greenhouse gases from the supply chain. Ford and Ikea are doing the same. Ford has contacted suppliers who represent a third of its annual $65 billion supply chain spending. Ikea has shown that based on sales there is a reduction but not in absolute emissions. Where can this information be found? In these companies’ annual sustainability reports.

Key electronics firms support RoHS revisions. What do they know that you don’t? When Companies like Sony Erickson, HP, Dell and Acer support the rigorous changes proposed for the revision of the Restriction of Hazardous Substances Directive, you should be planning accordingly.

HGC News Note 05-07-10

A few news items that should be in your thoughts as you plan and conduct your business. 

Resource scarcity is on the minds of DoD as reflected in their Strategic Materials Security Plan. You may recall that the EU has been doing the same especially with the steep ramp up in some metal and rare earth prices. You may also remember that the DoD announced plans to reduce their “boot print”. A $10 a barrel increase in the price of oil adds about $1.2 billion in additional energy costs.  

A study on sustainability initiatives reports that regulations are a more important driver than competitive advantage. In addition to the impact of Greenhouse Gas reporting, the importance of Scope 3 reporting for their supply chain has increased when measured against the previous year’s report.

If you still dismiss sustainability as vague do gooder stuff, you should read the Harvard Business Review which listed environmental issues as the next business mega trend.

Walmart starts testing toys for Cadmium.

California is preparing its plan for declaring chemicals of concern and managing those chemicals in products or use under California’s Green Chemistry Initiative.

As this note goes to press (to server probably more current) the price of oil is at $77 per barrel). It only took Greece, a Gulf of Mexico well leak and a 1,000 point drop in the DOW to get the price down from $83. Energy costs and the environmental issues associated are important business considerations.

Preparedness is another consideration. Some areas in Massachusetts and Kentucky had unprecedented flooding. Two million people in the Greater Boston Area had a boil water order when a relatively new coupling blew out on a 10 foot diameter water supply pipe. Water supply was maintained and potable water returned to service in a few days. For either event, would you be prepared?

The RoHS and WEEE Recast (review) is looking at some very significant changes that will have a major impact on product design and end of life cost management. Use of the CE Mark and expansion to all electronic equipment is under consideration. Deliberations will continue this Spring.

Sony’s aggressive targets for energy, materials and Co2 reductions may be an indication of what to expect in the market place. Sony plans to have a zero environmental footprint by 2050. 2050 may not be your concern, but milestones in 2015 could be.