P&G Launches Supplier Environmental Sustainability Scorecard

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The Procter & Gamble Co., Cincinnati, Ohio, USA, this past week launched its Supplier Environmental Sustainability Scorecard and rating process to measure and improve the environmental performance of its key suppliers. The new scorecard will assess P&G suppliers' environmental footprint and encourage continued improvement by measuring energy use, water use, waste disposal, and greenhouse gas emissions on a year-to-year basis.

P&G says it hopes this "breakthrough work will lay the foundation for an industry standard and the scorecard will be 'open code' for use by any organization to help promote a working discussion and determine common supply chain evaluation processes across all industries."

The new supplier scorecard is the result of 18 months of work and close collaboration with the company's Supplier Sustainability Board, which includes more than 20 supplier representatives from P&G's global supply chain. The scorecard relies on accepted worldwide measurement standards and sound science, including protocols from the World Resources Institute, the World Business Council for Sustainable Development, and the Carbon Disclosure Project, so as to minimize redundant efforts and build on existing best practices. P&G's goal in deploying the scorecard is to enhance supply chain collaboration, measure and improve key environmental sustainability indicators, and encourage the sharing of ideas and capabilities to deliver more sustainable products and services for its consumers.

The scorecard is specifically designed to focus on, and encourage, year-on-year improvement, regardless of a supplier's total size or the current stage of its sustainability program. Roll-out beyond P&G's key suppliers will be determined once learnings from the first phase of deployment are incorporated. Suppliers will have a full year to prepare to report their data before the rating can adversely impact their supplier rating with P&G. In the future, P&G will use the scorecard to determine each supplier's sustainability rating as part of its annual supplier performance measurement process. The scorecard can be viewed online.