Intersecting Lean, CSR & Procurement: Nike’s New Supplier Sustainability Index and Program (Part 7)

Please click here, here, here, here, here, and here for the earlier posts in this series.

Thanks to the research of our parent firm (Azul Partners), AMR Research, and IHS, we've been able to identify what we believe are the top compliance related areas (on the bill of material level) that companies are most interested in monitoring and proactively managing with tier one and even lower tier suppliers. On a product compliance level, we've observed that conflict minerals (Dodd-Frank) management has generated the highest level of interest recently within the manufacturing community. You can check out MetalMiner's research compendium on the topic if you're curious.

Beyond conflict minerals on a product compliance level, we see manufacturers, retailers, apparel companies and other organizations most concerned with the following types of areas (based upon the work of Azul Partners, IHS and AMR Research): EU RoHS/WEEE, EU RoHS version 2, RoHS variants (Calif, China, other), EU REACH, Toxic Substances Control Act, Canada Chemical Management Plan/Health Canada, Non-Government Org (NGO) lists (e.g. ChemSec SIN list), Stockholm Persistent Organic Pollutants (PoPS), International Agency for Research on Cancer (IARC), OSHA, EPA, German Ministry of Labor (MAK).

The same sources suggest that from a carbon/emissions/GHG area that the following regulations are among those most closely monitored: Australia's CPRS (Carbon Pollution Reduction Scheme), US EPA regulation on GHG reporting, North American WCI (Western Climate Initiative), American Clean Energy and Security Act (Waxman-Markey Bill) / Cap and Trade, Canada's emissions reporting regulation, EU ETS (Emissions Trading Scheme), UK's CRC (Carbon Reduction Commitment), USA - RGGI (Eastern States Regional GHG Initiative), USA - RFP's for Environmentally Preferred.

Stay tuned as our analysis continues.

- Jason Busch

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