Supply Chain Management Association (SCMA)
Climate Impact & Sustainability Data (2016)
Reporting Period: 2016
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- CN Rail reduced locomotive emissions intensity by 17% since 2005
- Telus saved $1.2 million in cardboard costs, $260,000 in direct freight costs, and 68 tonnes less of CO2 emissions through less trailer shipments in 2015
- Ontario’s Beer Store developed a return-to-retail recovery system, refilling the average beer bottle 15 times, saving money and reducing waste
Social Achievements
- Canadian Tire performed 558 audits of factories in 2015, ensuring compliance with its Code of Conduct and working with partners to improve factory conditions in Bangladesh
- Tim Hortons Coffee Partnership improved economic, social and environmental performance of small-scale coffee farmers, resulting in an 80% increase in yield per hectare
- RBC is planning responsible procurement training sessions for all procurement managers and developing a three-year plan to expand its Supplier Diversity Program
Governance Achievements
- SCMA was among the first supply chain associations to require all members to adhere to a code of ethics
- Many Canadian companies implemented strict Supplier Codes of Business Conduct
- Companies are developing cross-functional teams to develop products and services, pulling together the brain power of all parts of the business to deliver a sustainability strategy
Climate Goals & Targets
Environmental Challenges
- Lack of visibility beyond direct suppliers in global supply chains
- ESG risks arising from suppliers, leading to reputational damage
- Disconnect between vision from the top and execution of supply chain sustainability strategies
- Difficulty in addressing issues within supply chains due to their complexity and global reach
Mitigation Strategies
- Developing a sound business case for supply chain responsibility
- Establishing codes of conduct based on respected standards
- Improving supply chain visibility to identify risks and opportunities
- Setting ambitious targets and metrics, and reporting supplier performance
- Forming partnerships to share best practices and resources
- Engaging suppliers through providing resources, guidance, and training
- Conducting audits and independent assessments to measure performance
Supply Chain Management
Supplier Audits: 558 audits performed by Canadian Tire in 2015
Responsible Procurement
- Codes of Conduct
- Supplier Codes of Business Conduct
- Conflict mineral screening
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Global Compact