Can AI help us to get to (better) grips with supply chain compliance?
Supply chains are based on fairly complex partnership networks where every link ideally must meet strict efficiency and compliance standards.
Supplier audits and legislation aim ultimately to ensure high standard, it is a not the least highly time demanding task to be successful at. AI offers the potential to support practical solutions for risk assessment, process optimization, and partner evaluation. Commercial providers are already jumping on the band wagon by providing ways to build 'digital twins' of real supply chains – hence opening them up for 'offline optimisation' - and of course highly sophisticated data analytics tools drawing from multiple disjoint data sources.
What would the Inevitable Policy response mean for the consumer goods industries? What could the effects be? This instalment of a 3-part series looks at shifts in costing paradigms, in transportation, and in supply chain structures.
The 5 principles of good design: Invisible, solves problems, open to communication, in sync with life cycle, and mimics nature.
Reducing humanity’s footprint on this planet is a journey of decisions.
Some of them tough, some of them very clear. And some of them – let’s just say: with very limited available data.
The journey we’re on, is the proverbial Designer’s Paradox. More scientifically speaking of course, we are faced with the ever lasting conundrum of Regrettable Substitutions.
So: Is there a best possible AND least bad option (combined) at this very moment?
You can’t manage what you can’t measure.
This common sense platitude holds true for a lot of things:
Salary, punctuality in trains, inflation. And – of course – sustainability/ESG data.
Measuring alone can be complex enough.
But there are also incentive systems. And the impact they have on aspirations to deliver results.
Where sales targets for instance are as good as always understood as ‘invitation to be exceeded’ (with financial and other bonuses resulting from overachievement) the near opposite holds true for ESG/sustainability related KPIs.
And that absolutely must change.
For every single person in every single company.
KPI priorities must be flipped on their heads.
Financial accounting is rather ill suited as well as ill equipped to deal properly with a system that has finite natural resources. Else, why would it not record the environmental losses that come with e.g. extracting bauxite? And what about ESG? Well it turns out, ESG is just more of the same (growth) just in a shade of ‘green’. It is for a reason that the Global Materials Footprint has kept growing in alignment with the much coveted GDP growth. Despite all green efforts. ESG – investing in ‘greener’ tech and businesses – is definitely NOT ‘Sustainability’ as we need it.
Large companies and institutional players are challenged to assess and calculate their carbon footprint. But they typically have the means to hire experts – in-house or consultants – and buy licenses of useful tools.This applies similarly to larger-sized SMEs. But what about distinctly small companies or indeed even individuals? How can they get a guesstimate on their carbon footprint, and possibly even some pointers how to do better going forward? Hence, here a short list of such calculators, both for individuals as well as for small companies.
In an earlier post I asked: How can business, a business, downscale the Doughnut and make it operational?
In this post I look at three tools that praise themselves of being either part, or even all, of the support a business needs on the journey to integrate the Doughnut Economics concepts. Namely: Science-based Targets (SBTs), the B Impact Assessment(BIA), and the Future Fit Business Benchmark (FFBBM).
What are their fundamental differences and similarities?
Are they indeed a tool to help on the path to keeping within the Doughnut boundaries?
First of an article series that analyses Uniqlo's CSR - specifically in Japan - track record, and why it joint forced with Bangladesh's Grameen Bank.
Carbon – together with biodiversity – is one of THE most critical dimensions among the Planetary Boundaries. Because the already existing overshoot is putting our civilisation at risk. So far nothing new under the sun. The big elephant in the room is of course: How do companies perform right now in terms of their carbon footprint? And: Do they have at the least commitments to work on a Paris Agreement trajectory? I answer these questions. Spoiler Alert: Some 'villains' are doing rather well. So well in fact that they are leading the pack.
After some results at the COP in Vancouver, as well as the release of the first ever Science -Based Targets for Nature (SBTN) – finally (!) the recommendations by the TNFD (Task Force for nature-based financial disclosure) have been released. So the question obviously is, how do these targets address the 5 key drivers of biodiversity erosion eventhough it is only about reporting? Are the TNDF recommendations worth their salt?
‘I feel like a fraud’. This is what employees of clients I work with often voice. It is usually at the point of time when strategy is moved to implementation. Hence: when it all gets concrete.
The statement is an expression of the feeling of overwhelm that comes with delving into sustainability issues, acquiring new knowledge and terminology, and in addition having to adapt ones habitual practice of work.It also happens once the low hanging fruits are gleaned, everything gets much more difficult.
It's the 'valley of despair'.
Why is it important to pay attention to it? And what can leaders do about it?
‘The conversation is always about cost, not about impact!’ And: ‘Employees just don’t get moving!’
Do these statements remind you of your company’s challenges? Your not alone!
Leadership and Operations Teams have complementary sustainability implementation accountabilities and responsibilities. But instead of leveraging that fact, more often than not the blame game is played.
What to do about it?
Implement Fair Process Leadership governance processes - and train all teams through Serious Games.
Uniqlo's corporate Diversity and Inclusion policy in number.
2nd of an article series that analyses Uniqlo and why it joint forced with Bangladesh's Grameen Bank.
Unless the top line of company executives are held accountable for and judged by their contribution to the company’s risk management and mitigation efforts, including importantly CSR and sustainability performance, the company will struggle. Without senior commitment and engagement, the system only ever allows for minor ‘bug fixes’.
An NGO comes after you – for the right or the wrong reasons.
A journalist publishes an article. The content: inconvenient truths, or equally inconvenient fake news.
Or simpler: The staff churn in your company is way above average. And no one seems to know why.
The meetings, the clashes, the disagreement, the blaiming that comes with it. Yes, been there, done that.
Thankfully, there were times I was not a party in the conflict. Instead I was assigned the (ungrateful?) task of figuring out how to resolve it, build bridges, and ‘get stuff done’. Not just once, but a few times.
What initially was of me ‘winging it’, over time – with trial and error – turned into something more structured. Still not perfect – it never will be, there is always room for improvement – but a flight-by-instrument rather than a blind adventure.
This post is my first try at illustrating, verbalising, this process.The steps I use, and what their intention is.
With the hope of it being as useful to others as it is and was to me.
Uniqlo & UNHCR's Global Clothing Recycling Initiative.
3rd of an article series that analyses Uniqlo and why it joint forced with Bangladesh's Grameen Bank.
The Founder Syndrome is probably the 2nd most frequent reasons why SMEs fail. The syndrome thereby refers to a steep power hierarchy in a small business, with the founder at its top.
In the discussions within companies around risk management and indispensable moves towards more sustainable processes and business practises, there’s habitually unmentioned elephant in the room, namely: Where, in all what needs to be done in the corporate world, does the responsibility of the individual factor in?
Governments as well as legal persons such as companies are undoubtedly important players in this whole societal shift towards climate mitigation and adaption. When it comes to corporates though, and notably stock quoted companies, there is a group of people that is most prominently exposed in regards to the legality and societal ‘license to operate’ of a company: the Board of Directors (BoD). The question hence for this blog post is: How is this climate litigation business shaping up to affect the Board of Directors of publicly listed companies?
















