OLIVE EARTH

A recent Guardian post claims that it is not the European or American companies which are leading the way to sustainability. It suggests that there may have been a significant shift towards sustainabe supply chain develpement in Asia. It finds that it is a shared-value practice whereby the Asian manufacturer has clear business incentives to be more sustainable.

Last decade was mostly about putting in command and control structures to enable compliance and risk management. But this report identifies asian companies to have arrived at a shared value approach, shifts the business driver for sustainability in the supply chain away from risk management toward mutual growth concepts. This has manifested in leaders pushing on shared business models and revenue-sharing models, collaborative efforts to streamline production and logistics for cost savings, and providing strong incentives for good performance in sustainability.

Examples from Asia:

1. The Bridge Loan for Green Production Facilities are available to support suppliers by HMC(Hyundai Motor Company)
2. Partner Collaboration Centre directly set up under the CEO by Samsung