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Sustainable Supply Chain: Telecommunications Equipment

Date: 17 February 2015

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33 pages, 16 figures

Executive Summary

Building a sustainable supply chain is a major endeavour because of challenges such as the fragmentation of suppliers under multiple jurisdictions, the costs involved in measuring and enforcing progress, and the global scope of manufacturing activities. This report helps decision makers in supply chain, procurement, corporate communications and sustainability roles to benchmark their sustainable supply chain strategy by analysing the approaches of 10 global telecommunications equipment firms with aggregate revenues of $388 billion. Verdantix analysis reveals that the level of corporate engagement with suppliers is a major differentiator among supply chain strategies. Approaches to supply chain engagement differ across businesses. Firms such as Cisco, EMC Corporation and HP have performed well with supply chain disclosure and engagement activities, while firms such as Huawei and ZTE Corporation host yearly supply chain sustainability conferences, but disclose less information on their supply chain sustainability activities.

TABLE OF CONTENTS

VERDANTIX DISSECTS TELECOMMUNICATIONS EQUIPMENT SECTOR SUPPLY CHAIN SUSTAINABILITY
Risk Drivers Push Supply Chain Sustainability Programme Development
Benchmark Compares Telecommunications Equipment Firms’ Supply Chain Disclosures

DEPTH OF SUPPLIER ENGAGEMENT DIFFERENTIATES SUPPLY CHAIN STRATEGIES 
Leaders Work With Suppliers To Improve Their Social And Environmental Performance
Opportunists Invest To Tackle Selected High-Risk Issues
Minimalists Rely On Regulatory Compliance To Manage Environmental And Social Risks In Their Supply Chain

TABLE OF FIGURES

Figure 1. Five Sustainable Supply Chain Initiative Categories Defined
Figure 2.
Assessment of Telecommunications Firms’ Supplier Audit Programmes
Figure 3. Social Issues Covered In Minimum Supplier Standards And Audit Process
Figure 4. Environmental Issues Covered In Minimum Supplier Standards And Audit Process
Figure 5. Sustainable Supply Chain Targets In The Telecommunications Sector
Figure 6. Characteristics Of Three Sustainable Supply Chain Strategies
Figure 7-1. Alcatel-Lucent Sustainable Supply Chain Code of Conduct & Targets
Figure 7-2. Alcatel-Lucent Sustainable Supply Chain Key Initiatives Benchmark
Figure 8-1. Cisco Sustainable Supply Chain Code of Conduct & Targets
Figure 8-2. Cisco Sustainable Supply Chain Key Initiatives Benchmark
Figure 9-1. EMC Corporation Sustainable Supply Chain Code of Conduct & Targets
Figure 9-2. EMC Corporation Sustainable Supply Chain Key Initiatives Benchmark
Figure 10-1. Ericsson Sustainable Supply Chain Code of Conduct & Targets
Figure 10-2. Ericsson Sustainable Supply Chain Key Initiatives Benchmark
Figure 11-1. HP Sustainable Supply Chain Code of Conduct & Targets
Figure 11-2. HP Sustainable Supply Chain Key Initiatives Benchmark
Figure 12-1. Huawei Sustainable Supply Chain Code of Conduct & Targets
Figure 12-2. Huawei Sustainable Supply Chain Key Initiatives Benchmark
Figure 13-1. IBM Sustainable Supply Chain Code of Conduct & Targets
Figure 13-2. IBM Sustainable Supply Chain Key Initiatives Benchmark
Figure 14-1. Juniper Networks Sustainable Supply Chain Code of Conduct & Targets
Figure 14-2. Juniper Networks Sustainable Supply Chain Key Initiatives Benchmark
Figure 15-1. Motorola Solutions Sustainable Supply Chain Code of Conduct & Targets
Figure 15-2. Motorola Solutions Sustainable Supply Chain Key Initiatives Benchmark
Figure 16-1. ZTE Corporation Sustainable Supply Chain Code of Conduct & Targets
Figure 16-2. ZTE Corporation Sustainable Supply Chain Key Initiatives Benchmark

 

ORGANISATIONS MENTIONED

Apple, Alcatel-Lucent, AT&T, BSR, BT, CDP, Celestica, Cisco, Deutsche Telekom, Electronics Industry Citizenship Coalition, EMC Corporation, Ericsson, European Union (EU), Flextronics, Global e-Sustainability Initiative (GeSI), Greenpeace, HP, Huawei, IBM, International Labour Organization, Joint Audit Cooperation, Juniper Networks, Microsoft, Motorola Solutions, Nike, PTC, QQ International, United Nations, US Securities and Exchange Commission (SEC), Walmart, Yue Yuen Industrial Holdings, ZTE Corporation