P&G extends sustainability scheme

19 July 2011

BEIJING: Procter & Gamble (P&G) is to continue its global "sustainability scorecard" for suppliers, as it bids to improve its environmental performance.

China Daily reports that the project by the world's largest consumer goods company, which includes a total of 24 Chinese suppliers, has already reached a response rate of 81%.

P&G's scorecard was launched last April with the aim of encouraging the sharing of ideas throughout the supply chain in order to maximise the sustainability of its products and services.

The 2010 scorecard's global results showed that around two-thirds of participants had reduced their overall energy use from the previous year.

A total of 38% of respondents also showed initiative in putting forward their own ideas for sustainable innovations.

According to the results, P&G's Chinese suppliers achieved above average-environmental performances by global standards across the year.

Originally extending to some 400 of the firm's largest suppliers and agencies around the world, this year's scorecard will be expanded to incorporate over 600 companies.

P&G's methodology was developed using data from the World Resources Institute, the World Business Council for Sustainable Development and The Carbon Disclosure project amongst other globally accepted measurement sources.

"When we designed the scorecard, we wanted to create a platform that will encourage dialogue, but I didn't require them to report the dialogue to me," said P&G's director of global purchases capability & strategy, Larry Loftus.

"This year ... a number of adjustments have been made to ensure that it's easier to use for our suppliers."

Li Weixiong, president of Rising Display Products, added: "Through applying the P&G suppliers' sustainability scorecard, not only did our business performance develop, but also so did our operational and environmental protection performances."

Data sourced from China Daily; additional content by Warc staff