MEDIA RELEASE PR40027
BSR Guide Reveals Path to Energy Efficiency for Companies' China-Based Suppliers
SAN FRANCISCO, June 16 /PRNewswire-AsiaNet/ --
In China, which emits more greenhouse gasses than any other country, many factories use about 10 times
more energy than their counterparts in Japan-giving global companies the opportunity to profoundly reduce
their climate impacts by working with their China-based suppliers.
While energy-efficiency investments in China are cost-effective, challenges related to the country's
regulatory structure, professional energy-service-provider industry, and lack of information about opportunities
and standards for measuring emissions often prevent companies from capitalizing on this opportunity.
BSR's (http://www.bsr.org) new report, "Unlocking Energy Efficiency in China: A Guide to Partnering with
outline for how leading companies can overcome these obstacles and launch supply chain energy-efficiency
programs in China. The recommendations build on BSR's experience helping Walmart launch its initiative to
improve the energy efficiency of its top 200 China-based suppliers by 20 percent by 2012. The report also
1,500 managers on energy management since 2004.
"The benefits to launching supply chain energy-efficiency initiatives are great: Companies can save money,
reduce their energy-related risks, gather information to communicate to investors who are increasingly savvy
about climate issues, and establish themselves as leaders before supplier energy management becomes
Research & Innovation. Lead author of the report, Schuchard spent more than six months helping Walmart
launch its efforts at the company's global sourcing headquarters in Shenzhen, China.
"We identified energy efficiency as a significant opportunity to quickly enhance the resilience and
environmental performance of our suppliers' Chinese factories," said Walmart Vice President of Global
Sourcing Ken Lanshe. "But we quickly learned that while the successes of Walmart's Supplier Energy-
Efficiency Program (SEEP) in the United States provided us with an effective model, navigating energy
efficiency in China required us to leverage local partners that possessed relevant knowledge, experience, and
tools. BSR's work helped us surmount these hurdles and ultimately reach more than 300 suppliers since
2009."
BSR's report shows that companies can turn China's unique obstacles into opportunities by offering
suppliers:
-- Insight: Global companies can orient suppliers with best
energy-management practices, and they can also share staff, trainers,
and other resources that that can help suppliers address challenges
such as garnering support from senior management.
-- Information: By offering tools such as data-reporting systems,
companies can provide suppliers with instant feedback and analytics to
help them make better decisions on their own.
-- Incentives: Company initiatives that link supplier purchase orders to
progress and stipulate that collaboration with suppliers will depend on
responsible energy use make energy efficiency more attractive.
BSR's report, which features perspectives from companies such as Walmart, Hewlett-Packard, and IKEA,
proposes a four-part road map to help business leaders get started by:
1. Building foundations for the engagement, which includes confirming that
the company is really ready, choosing suppliers, and defining basic
parameters
2. Giving suppliers direction and motivating them to get started, which
involves introducing them to the idea, launching the initiative, and
setting commitments
3. Helping suppliers effectively execute commitments on their own by
establishing effective communications, providing goal-oriented
measurement tools, and offering training and advice
4. Taking stock and considering how to refine methods, invest in their own
capability, and go further on energy efficiency and other issues
"By working with suppliers, companies can cost-effectively introduce dozens, hundreds, or even thousands
of factories to sustainability, and enable them to pursue efficiency on their own," said Schuchard.
To read Schuchard's article on supply chain energy efficiency in China, visit
Company managers interested in BSR's Energy Efficiency Partnership Program, which builds on insights in
About BSR
A leader in corporate responsibility since 1992, BSR works with its global network of more than 250
member companies to develop sustainable business strategies and solutions through consulting, research,
and cross-sector collaboration. With offices in Asia, Europe, and North America, BSR uses its expertise in the
environment, human rights, economic development, and governance and accountability to guide global
companies toward creating a just and sustainable world. Visit http://www.bsr.org for more information.
SOURCE: BSR
CONTACT:
Eva Dienel,
Communications Manager,
BSR,
+1-415-984-3233,
edienel@bsr.org
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