CINCINNATI: Procter & Gamble rolled out its second annual sustainability scorecard with upgraded features and expanded distribution to 600 suppliers.
Anne Doyle, brand manager of global sustainability at P&G, said the scorecard is one initiative among others that falls under the company's recently revamped vision, announced last fall.
“The scorecard fits in because when you look at the full lifecycle of our product, such as how they're produced, our suppliers are a key component of the environmental footprint of those products,” said Doyle. “We need to be focused on helping our suppliers be more sustainable.”
Last week, P&G hosted a global webcast to announce the results of the 2010 scorecard, as well as the plans for this year's initiative. Some updates to the 2011 scorecard include a clearer process to allow supplier partners to exclude measures that do not apply, a more transparent and consistent rating methodology, and an ability to compare year-on-year improvement.
“It's a great tool to enable us to collaborate with our suppliers, so that we can help them track their environmental metrics and then give them expertise that we have, and also so that they can share their expertise with us,” said Doyle.
The sustainability scorecard is mainly communicated to suppliers through P&G's procurement division, who maintain a more ongoing relationship with the particular audience, said Jeff LeRoy, media relations manager at P&G. Meanwhile, broader messaging is handled by the company's internal communications team.
This year's scorecard is also available to outside businesses, added LeRoy.
“Our role is to inform and motivate them to participate and use our scorecard for other businesses with their suppliers and elevate it from just a P&G 600-supplier tool,” he said. “We've seen our suppliers use it with their suppliers. We've had other small companies that say hey can we re-apply this and we highly encourage that. If there's one standard across industries, it makes it much easier for everybody.”
Of P&G's 24 key performance indicators with suppliers, sustainability is the first one to use the detailed scorecard, containing multi-quantitative and -qualitative measures, said LeRoy.
The 2010 scorecard, which went out to nearly 400 suppliers, saw an 81% participation rate. In addition, approximately 40% of the suppliers offered at least one innovation idea for future projects. It measured suppliers' performance centered on three key goals of enhancing supply chain collaboration, improving key environmental factors, and encouraging the sharing of ideas and capabilities to deliver more sustainable products and services to consumers.