Due to the low costs of labor and inputs, many companies have taken their production facilities to China, thus seeking to increase the competitiveness of their supply chain. For the development of the country, this was excellent, which saw its economy grow by leaps and bounds and become the second largest in the world. Nature, however, is taking its toll: China is the country that emits the most greenhouse gases in the world and, due to the extremely polluted air, it is estimated that around 4 Chinese people die every day.
To encourage companies not only to be more sustainable environmentally, but also socially, the Institute of Public & Environmental Affairs (IPE) and Natural Resources Defense Councill (NRDC) developed last year the CITI (Corporate Information Transparency Index, or, in free translation, the Corporate Information Transparency Index). It is the world's first quantitative assessment system to measure the environmental performance of the supply chain of major brands operating in China. The system basically evaluates five criteria – engagement and responsiveness; compliance with regulations and measurement of corrective actions; extension of green practices throughout the supply chain; responsible recycling; transparency and disclosure of data – and aims to disseminate the best green practices.
The 2015 index was released a few weeks ago and the operations of 167 supply chains were analyzed. The best ranked brands can be seen in Figure 1.
Figure 1 – Top 10 greenest supply chains in China
Source: CITI 2015
For the second consecutive year, Apple was the best evaluated brand, corroborating the efforts that the company has been making to become more sustainable. After being considered by GreenPeace in 2011 as the least environmentally friendly technology company, the American multinational turned the tables and, under the leadership of Tim Cook, Apple has made great efforts to become greener, committing itself to using only energy from renewable sources in the long term. The company already has solar installations that produce more than the total amount of electricity used by Apple offices and stores in China, and it intends to expand this project to other areas of the country and to its suppliers as well.
With regard to social sustainability, there is still much to be done. Earlier this year, a Chinese man working at one of Apple's factories in the country was found dead in his dorm room. The cause? The same one that causes about 600 workers in China to die each year: exhaustion. Death from overwork is so recurrent that it has gained a special nomenclature: guolaosi. Although this situation is not unique to Apple, the company claims to be taking steps to curb long working hours in its factories and in that of its suppliers and ensure that employees work a maximum of 60 hours a week.
If a few decades ago sustainability was just a trend and something used by a few companies to promote themselves, today it is a matter of prime importance. Not only have governments increased inspections and created new regulations to curb abusive practices against society and the environment, but the population has also become more attentive and demands this from companies. The statements by presidents Barack Obama and François Hollande at the opening of the COP21, which began this week in Paris, make clear the relevance of this issue.
With the massification of the internet and the revolution brought about by social networks, any reprehensible attitude is just a click away from everyone's knowledge, enormously increasing the exposure of companies. Thus, to stay in the game, it is up to organizations to work towards increasingly sustainable operations. Otherwise, one hour the bill arrives.
References
<http://thecityfixbrasil.com/2015/07/15/nossa-cidade-quem-sao-as-nacoes-mais-poluentes-do-mundo/>
<http://www.strategicsourceror.com/2015/11/new-report-reveals-apple-inc-has.html>
<http://114.215.104.68:89/Upload/file/CITI/2015/CITIreport%202.0-2015_EN.pdf>
<http://greensavers.sapo.pt/2015/05/30/greenpeace-apple-e-a-empresa-tecnologica-mais-verde/>
<http://www.inpacto.org.br/2015/03/chines-morre-em-fabrica-da-apple-por-excesso-de-trabalho/>
<http://www.inpacto.org.br/2014/07/na-china-600-mil-morrem-por-ano-de-exaustao/>
Fernanda Monteiro
More than 11 years of experience in training and consultancy projects, focusing on Logistics and Supply Chain. In consultancy, he carried out projects such as Transformational Logistics Plan, Diagnosis of logistics operations, Strategy and Calendarization of Transport Operations, Measuring the Cost of Serving, Market Study, Mapping of Inventory Reduction Opportunities, Review of the S&OP Process, Management Plan Training and Implementation of Commercial Processes in companies such as Nestlé, Raia Drogasil, Ipiranga, Lojas Americanas, B2W, Coca-Cola, Andina, Embraco, Martins Atacado, Loja do Mecânico, Santo Antônio Energia, Ecoporto and Silimed. She is currently one of the teachers of the Inventory Management Course taught every six months by ILOS. She worked on the development and management of Online Courses in Logistics and Supply Chain, Supply Processes, Demand Planning, Inventory Management and Industrial Management. Still in the training area, she was responsible for applying ILOS business games in companies such as Raia Drogasil, Fibria, NEC, Novartis and Moove.
