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On October 5, 2009, the newest Federal Government Supply Chain challenge became a reality when Presidential Federal Executive Order 13514 (Federal Leadership in Environmental, Energy, and Economic Performance) was signed and published. Order 13514 requires government agencies to set 2020 sustainability targets within at least 90 days. Combined with the H.R.2454 – American Clean Energy and Security Act of 2009, passed in July 2009, the “wait-and-see” is over. Now is the time for action.
Wait a minute. Is everyone on board? What are the implications of no action? During a recent Green Tech Media survey, 74 sustainability executives ranked improving sustainability/environmental activities as fourth on the corporate supply chain priority list. Here are the amalgamate results (priorities) from this survey group:
1. Improving Supply Chain Service
2. Reducing Supply Chain Risk
3. Managing the Supply Chain
4. Improving Sustainability/Environmental Supply Chain Activities
5. Improving Manufacturing Efficiency
6. Improving the Global Supply Base
This article offers a methodology for green supply chain transformation, potential challenges, and implications for not acting.
The Federal Leadership in Environmental, Energy, and Economic Performance E.O. 13514 implies a simple and well-crafted sustainability strategy that is applicable for big, mid-sized, and small businesses, as well as non-profits, federal, state, and local governments.
The Carbon Footprint Reduction (sometimes called Greenhouse Gas – GHG) strategy most corporations are using (or will use in some form) includes Carbon Footprint Measurement; Implementation; Monitoring; and Control and Reporting. This four-step process sounds simple but could be overwhelming if not planned and budgeted for FY 2010.
Here’s a high-level breakdown of the measurement to reporting phases. GHG Measurement is the measurement of the enterprise’s impact on the environment through its carbon (CO2) and other greenhouse gas emissions released into the atmosphere. Federal contractors such as logistics companies, rail, ocean, and air carriers, lead logistics providers, brokers, forwarders, reserve logistics operators, and other supply chain partners generate CO2.
Follow this link for the NDTA article. http://www.ndtahq.com/documents/GreeningFederalSupplyChain.pdf