P&G extends supplier sustainability scorecard program

The world's largest consumer goods company Procter & Gamble Co (P&G) will extend its global "sustainability scorecard" to another 200 top suppliers as it bids to improve its environmental performance. The scorecard program was introduced in May 2010 to about 400 suppliers and agencies around the globe who had the biggest impact on the consumer giant's business.

"This year, the scorecard program will be expanded to more than 600 suppliers and agencies and a number of adjustments have been made to ensure that it's easier to use for our suppliers," said Larry Loftus, director of global purchases capability & strategy, Procter & Gamble Co, who is also the scorecard's designer.

According to P&G 81 percent of scorecard participants from nine industries - including financial services, chemicals, manufacturing, logistics and packaging - provided timely reports. Of these, 24 were Chinese suppliers and their assessment results showed that, generally speaking, they acheived above-average results in terms of environmental performance during the term.

The statistics also reflected that, compared with the previous year, 63 percent of suppliers reduced energy use, 64 percent of suppliers reduced greenhouse gas emissions and 62 percent of suppliers increased water use efficiency. At the same time, 38 percent of suppliers who responded provided sustainability innovation ideas and input.

P&G's methodology was developed using data from the World Resources Institute, the World Business Council for Sustainable Development and The Carbon Disclosure Project amongst other globally accepted measurement sources.

"When we designed the scorecard, we wanted to create a platform that will encourage dialogue, but I didn't require them to report the dialogue to me," said Loftus.

"Through applying the P&G suppliers' sustainability scorecard, not only did our business performance develop, but also so did our operational and environmental protection performances," Li Weixiong, president of Rising Display Products told The China Daily.

The display products company's water and energy consumption dropped by 15 percent respectively year-on-year in 2010. Moreover, it co-created a highly-efficient operational model with P&G that significantly reduced energy consumption as a result.

The scorecard is not unilaterally enforced by P&G. Instead, it is an open and collaborative model to drive sustainability and to encourage dialogue among suppliers and agency partners seeking suitable solutions.

"Since we launched the scorecard, we have received recognition from a number of organizations. We offered to share it with everybody and have made a lot of friends. From that perspective, it helps to build P&G's image quite well," said Loftus.