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In June, Hara Software announced two manufacturing wins for Hara Environmental and Energy Management (EEM) - Diebold and Hasbro. Earlier in May, Hara announced its Spring 2010 Release including enhancements to its functionality in forecasting and modeling, simplified reporting for Carbon Disclosure Project, EPA Climate Leaders and other programs and protocols, and automated integration to utility systems. Other manufacturing customers of Hara's include Apple (a relatively new addition) and Coca-Cola.

Sustainability was a well discussed (and promoted) topic at Sapphire, sprinkled throughout the keynotes from guest speakers - Sir Richard Branson, the Honorable Al Gore, and General Colin Powell, in the co-CEO Jim Hagemann Snabe and Bill McDermott press conferences, in Chief Sustainability Officer Peter Graf's sustainability roundtable, myriad presentations by SAP and its ecosystem of partners across the exhibit floor, and even the announcement of the SAP Pinnacle award to CSC in sustainability.

The week of May 10th was a banner week for sustainability news and discussions, including the two days I spent in Chicago at ASA's Sustainable Manufacturing conference, Procter & Gamble's new sustainability supplier scorecard, the introduction of Kerry-Lieberman's American Power Act, SAP's new interactive sustainability report, an EPA ruling on GHG emissions, and my colleague Simon Ellis' experience on a sustainability panel at Transplace's Shipper Symposium. I'll follow up in another piece with more information on the Sustainable Manufacturing conference and my earlier attendance at a March MIT Green Supply Chain event, Simon will provide some highlights of his panel in his May Theory & Practice newsletter article, and SAP's report is worth a look but is fairly self-explanatory. For now, I'll concentrate on Procter & Gamble, the EPA, and the American Power Act.

On April 21st, SAP announced its intent to acquire environmental, health and safety (EH&S) partner TechniData AG, and the acquisition should be completed in the beginning of the third quarter of 2010. In fiscal year 2008, TechniData recorded sales of EUR 64.9 million
One phrase in the press release summarizes the announcement best: this acquisition is the next logical step. There's more marketing spin in the rest of that statement, but this is one of those deals that has appeared obviously inevitable going back almost three years, and as the relationship strengthened, one that became necessary as well for both companies. TechniData is an integral component of SAP's EHS offerings, and TechniData has become so linked with SAP that the relationship has effectively closed opportunities with other vendors. But just because news is expected doesn't mean it's not good news.

In our 2010 supply chain survey of 400+ U.S. manufacturers, IDC Manufacturing Insights asked "How important is driving environmental or social sustainability initiatives in the supply chain?" The good news is that 58% think it's important. Because this wasn't a sustainability survey, we don't ask them out right why sustainability in the supply chain is important. But we can see correlations to other issues that have high importance - like risk avoidance and risk management.

By now, you've probably noticed that IDC does surveys in a big way. All that survey work means that I pay close attention to surveys produced by other companies. I read through the results with a healthy dose of skepticism, but recently I've found two very interesting ones related to sustainability - one from Ceres and another from Brighter Planet.

The pace and complexity of change the automotive industry is facing is staggering. If we look ahead 10 or 20 years, how many times will the product need to change? Joe Barkai and I have taken a look at just a few of the high profile announcements we've seen over the last couple months - from recent auto shows, investments in new technologies, and even the relationship between the industry's products and regulations, voluntary or involuntary. A common theme runs through many of these announcements - sustainability.
For the auto industry, sustainability isn't just about one issue or one product. It's about addressing a combination of environmental, social, and economic issues, such as customer expectations, government regulations, and financial pressures, all at the same time; knowing the risks and opportunities across every aspect of the business and across the lifecycle of every product is crucial.

Earlier in January, IDC Manufacturing Insights presented our top 10 2010 predictions for manufacturers, and I briefly introduced my sustainability prediction for manufacturers.
Armed with Metrics, Manufacturers Move from Sustainability Reporting to Intelligence.

This week, starting on December 7th, is the kickoff of the UN climate change conference in Copenhagen, with diplomats from 192 nations. Although the type of high-level negotiations and goal setting at the conference are important steps in the process, I believe there are many smaller steps the manufacturing community can and should take to incorporate environmental sustainability into their products, processes, and plants. I've always said that manufacturers play a critical role in sustainability, and it's their job to make it easy for their customers to go green. Basically, manufacturers know their products best, and it's up to them to take a closer look at how they shape and influence the product lifecycle from cradle to cradle. From my perspective as a sustainability-conscious consumer, there are many changes I'd like to see in the coming year. In the spirit of the holiday season and our forthcoming Top 10 Predictions for 2010, here are the top 10 sustainability wishes for manufacturers, from a consumer perspective developed by myself and Simon Ellis, our supply chain practice director.

Catching up on work after travel in the end of October and some time off, I'd like to return to one of the events I recently attended in New York City – SAP's World Tour. After a lead in presentation about how SAP can help companies achieve "business clarity" and plenty of references to seeing clearly, I began to formulate the title a la Bob Parker, our VP in Manufacturing Insights and a fan of song titles for his articles – something based on the song "I Can See Clearly Now".

"Regulatory return" – that's the phrase Chemical Week's editor used to describe the EPA and the legislative branch's movement forward on regulations. With signs the recession is easing and growing pressure to respond to climate change, we agree that regulations are going to be high on everyone's agenda.

Last year, we published Sustainability Excellence Brings Profits to Manufacturers — Linking Going Green with Financial Health. That document combined our knowledge of the quarterly financial performance of 800+ publicly traded global firms in the manufacturing and retail industries — our Global Performance Index (GPI) — with the manufacturing companies in the Dow Jones Sustainability Indexes (DJSI), global indexes tracking the financial performance of leading sustainability-driven companies worldwide.
This year, we repeated our analysis, using those companies in the DJSI as of October 2008 to compare the revenue, inventory levels, and profit margins of these companies in both our GPI and the DJSI through December 2008 – a total of 137 manufacturers.

On July 16th, Walmart announced plans to develop a worldwide sustainable product index during a meeting with 1,500 of its suppliers, associates, and sustainability leaders at its home office in Bentonville, Arkansas. Walmart claims the index will establish a single source of data for evaluating the sustainability of products, but a better way to think about it is as a starting point for evaluating the sustainability of the suppliers themselves. Walmart is going to do this through a series of 15 questions, which fall under 4 headings - Energy and Climate, Material Efficiency, Natural Resources, and People and Community. (Click on the link to Walmart CEO Mike Duke's speech and you'll find a way to download the Fact Sheet and 15 question pdfs).