DOING BUSINESS BETTER. TOGETHER

A good rub of the green

11 May 2009 12:00 AM | Anonymous

Companies are now well aware that they must account for the environmental impact of their business decisions. Existing European legislation, impending national programmes such as the UK Carbon Reduction Commitment and educated, vocal end-users all add to this pressure.

Consequently, many companies have begun to ensure the green promises they make are upheld throughout their supply chain. This is not just to maintain brand integrity. Pushing suppliers to uphold green standards mitigates the costs and risk involved when making changes to meet environmental commitments.

Whilst in-house technology departments have often led the way with green initiatives, outsourcing partners – especially those offshore – have escaped serious scrutiny. This is, however, beginning to change. Offshore partners now realise that they must measure up to the green mission statements being made by their customers.

So how do you go about ensuring your service provider, based thousands of miles away, is adhering to policies created locally?

Firstly, it is crucial that considerations such as environmental “track record” are included as part of the selection criteria for an outsourcing partner. Does the history of the supplier match the programmes and aspirations in place for your organisation?

The actual tactics in place for a better offshore green profile may include the physical facilities and offices used by your provider (locally as well as offshore). Practices such as recycling of IT equipment, energy conservation programmes and green procurement are good indicators. The critical point is do they fit with the culture already in place within your organisation?

Once this fit has been established the next element is to ensure a consistent method of green reporting runs throughout the SLA. Account meetings should take account of environmental metrics as well as operational delivery and financial savings.

Integrating this information to see where green practices are delivering savings or efficiencies is the ideal here. However, such a level of sophistication is still quite rare.

As the recession bites and cost savings once again take centre stage for outsourcing, it is important not to neglect issues such as green. They are the source of future stability and the commitments made now in the name of the environment will continue to reap financial benefits throughout the supply chain and across geographical boundaries.

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