International Companies Smart to Focus on Environmental Performance Throughout Supply Chain

Feb 29, 2012

Two Shanghai-based consultants for Golder Associates, a global engineering, construction and technical services company, have co-authored a recent article entitled "Reputation risks due to environmental performance of supply chains on the rise in China," in a UK financial publication. The article addresses how environmental practices at supply chain companies in China can affect a multinational firm's corporate reputation.  

In the article in "Financier Worldwide," Golder senior consultant Derek Langgons and managing director Oliver Liu point out that "this trend is posing new, material risks on international corporations that are perhaps unknowingly dealing with companies whose operations are causing negative environmental impacts."

The authors go on to say that corporations that "demonstrate a diligent understanding of the environmental performance of their supply chains will have a point of competitive advantage due to more reliable supplier networks and less reputation risk."

Golder is helping many of our clients improve environmental health and safety (EHS) management to demonstrate responsible supply chain stewardship. Multinational manufacturing companies are easy targets and the international media seem very receptive to stories that can damage reputations.

The Institute of Public and Environmental Affairs (IPE) now has a website with a "blacklist" database of foreign companies that have received enforcement notices from environmental regulatory authorities in China.

Langgons and Liu indicate that what has become clear is that traditional corporate approaches of ensuring compliance with regulations in China are insufficient in managing risks to operations and reputation.  Companies need to look toward international best practice to establish environmental requirements, rather than relying on Chinese regulations and standards alone.

A more proactive approach, involving effective assessment of EHS issues throughout the business including supply chains, as well as the establishment of consultation programs with communities and NGOs is becoming more and more necessary. The entire article can be found here. Golder also featured this topic in a recent story in our Technically Speaking newsletter.

Golder provides local, national, and multinational clients with comprehensive Industrial Hygiene services. Due to the depth and strength of our organisation, we easily function within each client's cultural and corporate mandates, wherever the project location. We offer these services through local offices to produce quality solutions that are on time, within budget, and attuned to individual client needs.

For more information contact:

Golder Associates Consulting.

Derek Langgons
Senior Consultant
Tel: [+86] (21) 6258 5522 ext. 160
E-mail: derek_langgons@golder.com

Oliver Liu
Principal
Tel: [+86] (21) 6258 5522 ext. 102
E-mail: oliver_liu@golder.com

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