Martin Brotschul, senior manager, Supply Chain Strategy Practice, Accenture

In this talk, Martin focussed on the impact of climate change on supply chain business models.

Customers are stepping up to environmental responsibility and demanding sustainability from the supply chain that produces the goods they use. The push has come from Europe but the US is catching up. Many companies are interested in instituting change before legislation is imposed upon them. Companies are also beginning to see how moves towards sustainability can have a significant impact on brand value.

For a typical consumer good, only 12% of the carbon footprint comes from storage and distribution. However emphasis is in this area as this section of the supply chain is highly visible - it’s the truck you see at the end of your street or a towering storage facility.

As the price of oil rises, this will be passed on to consumer goods. Other options include reducing distribution network or looking at new fuels such as biofuels. Trucks can switch to the electric model.

Companies that are already beginning to look into some of these approaches include M&S, Sainsbury’s, Innocent Drinks, Green & Blacks, Walkers and Hewlett-Packard. From the list it’s evident that early advances are being made in Europe. However, US companies are beginning to become more active -the most visible example being Wal-Mart.

What does the future hold?

As well as reducing carbon emissions, manufacturers will have to look further into the external social costs of the goods they produce. One example is battery manufacturers offering ways to dispose of dead cells.