Supply Chain Sustainability Overview

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Supply Chain SustainabilityOverview
Shaun McCarthy Head of Group Utilities BAA PLC
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BAA plc
Aberdeen
Edinburgh
Glasgow
Boston (Retail)
Pittsburgh (Retail)
Indianapolis
Naples
Stansted
Heathrow
Gatwick
Muscat
Southampton
Salalah
NT Airports
Perth
Melbourne
Launceston
The worlds leading airport company
www.baa.com
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This presentation is about...

• Why do we do this stuff...?
• BAA sustainability objectives
• Supply Chain Sustainability
• Eating the elephant
• Case studies

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Why do we do this stuff...?
Responsible
Profitable
and
Growth of air travel through our airports
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2003 Stakeholder Survey
Q13. To what extent does a sustainable
development approach make growth more acceptable?

Business Partners
Passenger Reps
Business Orgs
Employee Reps
Suppliers
Govt Agencies
Retailers
Media
Community Reps
MPs, MEPs
Local Authorities
Pressure Groups
Not At All
Fully
Partially
Key
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Why do we do this stuff...?
BAA spends 1.6Bn through its supply chain each
year. This is 50 of our total outgoings. It is
therefore essential that our supply chain is
aligned with and engaged in our core purpose.
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BAA Sustainability Objectives
Local focus (airport)
Air Quality
Noise
Surface Access
Waste
Water quality
Human rights
Local suppliers
Biodiversity
Materials
Climate Change
Global focus (corporate)
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BAA Supply Chain
1.6Bn
2,500 First Tier
10,000 2nd Tier?
650 product groups
100,000 transactions
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Our approach...
How do you eat an elephant?
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Our approach...
How do you eat an elephant?
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Our approach...
How do you eat an elephant?
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Our approach...
How do you eat an elephant?
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Our approach...
How do you eat an elephant?
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Our approach...
How do you eat an elephant?
One slice at a time!
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Eating the elephant...
Impact
Value
Initial analysis
Verification
Evaluation
Review Best Practice
Set Targets
Measure
Feedback
Deliver
We are here
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Eating the elephant...

• Issue specific
• Questionnaires
• Criteria
• Measures
• Standards

Process Compliance

• Process implementation
• Acquisition
• Supplier evaluation
• Spot checks audits

• Targeted Initiatives
• Clean Vehicle policy
• Meet the Buyers
• Climate Change
• Waste

Deliver
Prioritised Targets

• Difficult stuff
• Materials
• International/local sourcing
• Human Rights/labour standards

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What does this mean to suppliers?
Air Quality
Climate Change
Surface Access
Water quality
Human rights
Local suppliers
Noise
Waste
Biod.
Materials
Cleaning
Coaching
Baggage systems
Construction
Architect
Consider your impact on specific issues not
one size fits all
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Where to get help?
Environmental Innovations Procurement Group
Innovation Growth Team Report (Recommendation
3B)
Sustainable Procurement Group
Environmental Goods Services
Sustainable Procurement
Framework for Sustainable Development on the
Government Estate
Sustainable Procurement Sub Group
Innovation
Sustainable Consumption Production Framework
DTI Innovation Report
www.sustainablesupplychainforum.org.uk
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Where to get help?
www.sustainablesupplychainforum.org.uk
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Case Study...
Climate Change
We are on target to meet our current objective
through conservation alone
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Case Study...
Climate Change
Options considered to save cost and improve
environmental performance
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Case Study...
Climate Change - Goal
We will reduce CO2 emissions from energy use at
our UK airports by 15 by 2010 compared to 1990
levels.
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What does this mean to BAA?
BAA CO2 Strategy - Impact
700,000
1990 -5
600,000
1990 -12.5
500,000
1990 -20
400,000
BaU Total
tonnes CO2
300,000
CO2
Old strategy
200,000
New strategy
100,000
-
2002/03
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
In 2010, 107KTonnes CO2 saved (BaU minus 17) -
1990 minus 14
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Case Study...
Climate Change - Challenge
Renewable energy - Between a ROC and a Hard Place?
The price of ROCs - driven by recycling benefits
and the inability of UK PLC to develop enough
renewable energy fast enough - is making bulk
purchase of renewable energy by a customer
financially and politically challenging.
We are working with Forum for the Future and
other major PLCs on this issue
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Case Study...
Local suppliers
Heathrow Meet the Buyers Business Generated
since 1997
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Case Study...
Local suppliers
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Case Study...
Recycling
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Case Study...
Recycling
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And finally...
Implementing a Corporate Social Responsibility
strategy in a supply chain is very difficult
But
it is possible to translate corporate CSR
requirements into supply chain process and build
from there to systematically address priority
issues
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Thank you for listening
shaun_mccarthy_at_baa.com