Environmental regulations are becoming more consistent globally, as those passed in one region have knock-on effects on supply chains in other regions. Companies across many sectors, especially those in fast moving consumer goods and food & beverage, are under pressure to publish sustainability reports and enforce environmental standards. This GIA whitepaper outlines sustainable practices in the manufacturing and logistics industries, and the role of sustainability in the Asia-Pacific. This presentation shows selected slides from a GIA white paper. To download the entire white paper that you are interested in, please visit http://bit.ly/GIAinsightWP

1. Green Supply Chain
Management in Asia-Pacific
GIA Industry White Paper
August 2009
Global Intelligence Alliance ©2009. All rights reserved.
Contact: Kelvin Inn kelvin.inn@globalintelligence.com Kim Khoo kim.khoo@globalintelligence.com
Web: www.globalintelligence.com
Tel: Singapore (65) 6423 1681 Hong Kong (852) 2107 4299
All Rights Reserved ©2009 www.globalintelligence.com

2. Contents
This contains excerpts from GIA’s “Green Supply Chain Management
in Asia-Pacific” White Paper. For the free white paper, please visit
www.globalintelligence.com or email info@globalintelligence.com.
Executive Summary
To green or not to green?
Asia-Pacific’s stance on green practices Not included here
Green supply chain management tools Not included here
Asia-Pacific green SCM case studies Not included here
This GIA Industry White Paper provides an overview of green supply chain management practices in the Asia-Pacific region. The report is provided as
is, free of charge and without any warranty or guarantee. Global Intelligence Alliance rejects responsibility for errors or omissions, or for any loss or
consequential loss arising as a result of decisions taken based on its contents.
©2009 Global Intelligence Alliance. All rights reserved. This report is copyright, however individual pages or portions thereof may be copied
referencing “Global Intelligence Alliance” as the source.
Global Intelligence Alliance (GIA) is a strategic market intelligence and advisory group. GIA was formed in 1995 when a team of market intelligence
specialists, management consultants, industry analysts and technology experts came together to build a powerful suite of customized solutions
ranging from outsourced market monitoring services and software, to strategic analysis and advisory.
Today, we are the preferred partner for organizations seeking to understand, compete and grow in international markets. Our industry expertise and
coverage of over 100 countries enables our customers to make better informed decisions worldwide. For further information please see the About
Global Intelligence Alliance section at the end of this report, contact the author or visit www.globalintelligence.com
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

3. Abbreviations and acronyms
3Rs Reduce, Reuse and Recycle – waste MOE Ministry of the Environment, Japan
management strategies, in order of MNC Multi-National Corporation
importance
CDM Clean Development Mechanism NDRC National Development and Reform
Commission , China
CPG Consumer Packaged Goods NEA National Environment Agency, Singapore
CSR Corporate Social Responsibility
PRI Principles for Responsible Investing
EPA Environmental Protection Administration, REACH Registration, Evaluation, Authorisation and
Executive Yuan, Taiwan Restriction of Chemical substances (European
ESG Environmental, Social & corporate Community directive 2002/95/EC)
Governance – issues in responsible
investing RoHS Restriction on Hazardous Substances
(European Community directive 2002/95/EC)
EU European Union
SCM Supply Chain Management
GG Guitang Group (China) SPB Seshasayee Paper & Board (India)
GSC Green Supply Chain
VC Venture Capital
GSCM Green Supply Chain Management WEEE Waste Electrical and Electronic Equipment
ICT Information and Communications (European Community directive 2002/96/EC)
Technology
ISO14000 Standards for an Environmental
Management System (EMS) set by the
“International Organization for
Standardization” (ISO)
LCC Low Cost Country
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

4. Executive summary
www.globalintelligence.com

5. Executive summary
Green SCM adoption set to rise, affecting most
industries in the Asia-Pacific region
Asia’s Rationale For Going Green
MULTIPLE
STAKEHOLDERS STRICTER EUROPEAN ENVIRONMENTAL
MARKET FORCES (scarce Firms in Asia, as the major
(retailers, REGULATIONS (RoHS, WEEE, REACH) have
resources, bottom line sources of raw materials,
customers, influenced Asian governments to pass
improvement need) are components and finished
consumers, similar laws that focus on process &
government) are driving firms’ new focus products worldwide, are
pollution prevention and product
driving new focus on “green-ing” their being pressured by regulation; these force change within
supply chains - MAJOR DOWNSTREAM
on sustainability companies competing in the global supply
manufacturing, sourcing CUSTOMERS (e.g.
and corporate chain, and also affect their relationships
& logistics. Walmart) to go “green”.
governance in the with other organizations.
market place.
IMPACT on consumer IMPACT on UPSTREAM suppliers:
durable & nondurable • Chemicals, Paints, Additives, Oils
• IMPACT on all industries goods such as:
• Materials - Cement, Concrete,
• “Green” supply chain management offers an 1. Food & Beverages Ceramics, Glass, Iron & Steel, Paper,
expanded way to think about cost reduction Minerals & non-ferrous Metals, Textiles
2. Consumer
and profit improvement.
electronics
3. Apparel
IMPACT on DOWNSTREAM users:
• Cosmetics
• Electronics
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

6. Executive summary
Case studies yield some green supply chain best
practices to reduce costs and increase revenues
Asian examples of “green” best practices
• The Chinese sugar refinery and Indian paper firm case studies brilliantly apply the green “3Rs” principle of “Reduce, Reuse
and Recycle”; with both firms diversified into related industries - sugar, paper, alcohol and cement – and utilising waste
products of the other industries as raw materials or for power generation.
• Case studies also highlight the importance of building effective incentives with external parties (suppliers, competitors,
customers and government) to improve the robustness of the supply chain system on all levels: local, national and
international.
• The Japanese IT multinational case study illustrates the benefits of centralization, sharing infrastructure and route
optimization in a local context, that can result in relatively large efficiency improvements and cost reductions.
Reduce, Reuse & Recycle Establish supporting network of external 1. Logistical centralization for economies of
waste products parties motivated to ensure sustainability scale.
of green supply chain
2. Share logistical overhead with partners for
cost reduction.
3. Optimize transportation routes to further
reduce costs.
Raw Suppliers Customers
Energy
materials
generation
for another
for plant
product Government Competitors
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

7. To green or not to green?
www.globalintelligence.com

8. To green or not to green
Green supply chain adoption driven by management,
organizational learning, market pressures and
government regulations
Source: Global Intelligence Alliance research & analysis
Company/management
Market Government
Consumers are
environmentally-
Scarce conscious and apply Government
Drivers
resources & International institutional pressure, introduction of stricter Future
unstable customer pressure e.g. Principles of domestic and
prices mean and competitive Responsible Investment international
competitive advantage for (RPI) framework & regulations, e.g. RoHS,
advantages suppliers, e.g. 2nd- Environmental, Social & WEEE and environmental Now
from better tier local supplier corporate Governance guidelines such as
resource use could be chosen over (ESG) criteria ISO14001
& efficiency MNC’s home supplier
Insufficient Insufficient Fears of high Inconsistent government
management green SCM upfront costs regulations across Asian
Now
commitment knowledge by and long countries increases
Inhibitors
and supply many SC payback compliance complexity,
chain partner professionals period except where strictest
support standards adopted Future
Company/management Government
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

9. To green or not to green
Green supply chain has tangible cost & efficiency
advantages as well as intangible & emotional benefits
Green Supply Chain
Management (GSCM)
Benefits
Tangible Intangible
Suppliers and Manufacturers Suppliers and Manufacturers
• Reduced input costs (raw materials, • Greater ease of manufacturing (e.g.
utilities, logistics) and overall less waste) and improved quality
production costs (more consistent)
• Reduced waste disposal costs.
• Better operational efficiency and Customer
resource usage leading to possible • Higher levels of convenience and
competitive advantages. Emotional satisfaction (e.g. detergent that
• New revenue opportunities cleans in cold water)
All Supply Chain Players
Customers • Improved motivation, pride
and moral about “doing good” Environment
• Lower lifecycle cost of ownership for • Overcome cynicism over
customers for society among stakeholders
environmental concerns
throughout supply chain (e.g..
Environment employees, shareholders,
management, partners) Society
• Lower environmental load for local • Greater care and attention to
environment and ecosystem • Improved corporate image and
environmental issues in non-work
branding for suppliers and
context
Society manufacturers
• Less consumption of finite global • Improved customer “feel-
resources good” factor and quality of life
Source: Global Intelligence Alliance research & analysis
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

10. To green or not to green
More companies in every economic sector are taking the
first step towards managing carbon emissions
90 Carbon Disclosure Project (CDP4) - 2006
Carbon Disclosure Project (CDP5) - 2007
Carbon Disclosure Project response rate
Carbon Disclosure Project (CDP6) - 2008
80
70
Percent Responding (%)
60
50
40
30
20
10
0
Source: Carbon Disclosure Project
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

11. To green or not to green
Greener supply chains being enabled by current VC
investment in green technologies for future use
Venture capital investment in green energy • According to Greentech Media, VC
technologies by industry, Q3 2008 investment in green energy
technologies in US, EU, Israel and
Australia exceeded US$2.8 billion in
Q3 2008, continuing the growth
momentum from previous quarters
(1Q 2008=US$998 million, 2Q 2008=US
$1.3 billion).
• VC investment and interest in green
energy technologies is expected to
continue.
• Every niche in green technology is
being explored, especially solar
energy.
• Strong investment is expected to
lead to commercialization and wider
adoption of technology within a short
time period.
Source: Greentech Media, 2008
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

12. To green or not to green
Downstream product “specifiers” have major roles to
play in driving greener supply chains
Product ‘Specifiers’
logistics services
Transportation &
CPG Automotive & Transportation ICT
Pharmaceuticals Industrial Other
Components Raw materials Industrial equipment
manufacturer provider manufacturer
‘Other Asia’ (49%):
Thailand, Taiwan, Korea, Singapore,
76 % of procurement 50 % of procurement Malaysia, Vietnam, Burma and the
survey source from China survey source from Philippines
India
Major influencer for greener supply chains Source: Global Intelligence Alliance analyses with survey data from eyeforprocurement, 2008.
• Eyeforprocurement conducted a ‘Sourcing in Low Cost Countries Survey’ in March and April 2008.
• Sourcing practices of 200 procurement professionals, senior executives from manufacturers, retailers and 3PLs operating in various verticals in
North America, Europe, Asia and Africa were surveyed.
• 59% of respondents were based in North America, 23% in Europe and 13% were from Asia and Africa.
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

13. To green or not to green
As a key source for components, equipment & raw
materials, Asia’s role in green supply chains is crucial
Low-cost source country (% respondents) • Asia, especially China and India,
continues to be the top region for
low cost sourcing.
• Components and raw materials
sourcing from Asia shows strong
growth, becoming prime targets for
green SCM efforts.
• Green SCM requires high levels of
cooperation with suppliers,
implying better management of
supply chains at supplier companies.
• Walmart started greening its
! ‘Other Asia’ includes Thailand, Taiwan, Korea, Singapore, Malaysia, Vietnam, Burma and the Philippines supply chain in 2005
• First, it reorganised its internal
Products / services sourced in low cost countries (% respondents) supply chain.
• Second, it put pressure on
1000s of its Chinese suppliers in
2008 to “green” their supply
chains also, e.g. reducing
packaging used and improving
product energy efficiency.
• Regulations such as RoHS/WEEE and
REACH are especially relevant for
pollution control of all components
and raw materials.
Sources: (1) eyeforprocurement survey, 2008;
(2) news articles
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

14. To green or not to green
Survey of APAC countries indicates consumers are
prepared to pay a higher price for going green
• According to a TNS survey of 17 countries and
13,000+ respondents, consumers are willing to pay How much more would consumers be willing to
the higher price required to go green. pay for green products?
• In Japan, consumers were the most enthusiastic Willingness to pay more for eco-friendly products
with 70% accepting a 5% price premium. Thailand 94%
• In Singapore 38% would pay 10% more, in Australia Malaysia 82%
this was 33%, followed by 26% in Japan. Korea 81%
• Consumers most likely to think green for food, Singapore 70%
with the majority believing it is 'right' or 'fair' for % consumers accepting a 5% price premium
retailers to adopt choice editing, or the practice Japan 70%
by which they remove unsustainable products from
Australia 57%
the shelves, leaving only environmentally-friendly
options. Singapore 55%
Thailand 49%
Consumers willing to shoulder part of the cost for going
green South Korea 41%
Hong Kong 55% Malaysia 40%
Australia 54% Hong Kong 35%
Japan 50%
Source: TNS Source: TNS
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

15. Thank You for Your Attention
These slides are excerpts from Contact Us
the GIA White Paper: “Green
Supply Chain Management in For additional information about the
Asia-Pacific”. Global Intelligence Alliance and our
services, please send email to
info@globalintelligence.com or log on
Download the entire White Paper to the GIA website for the contact
information of the GIA company
for Free nearest to you.
The report has been published under the
GIA White Paper series at
www.globalintelligence.com.
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

16. About GIA
Outlook for green supply chain in Asia Pacific | Aug 2009 www.globalintelligence.com

17. GIA is a strategic market Intelligence
and advisory group
Global Intelligence Alliance (GIA) was formed in 1995
when a team of market intelligence specialists,
management consultants, industry analysts and
technology experts came together to build a powerful
suite of customized solutions ranging from outsourced
market monitoring services and software, to strategic
analysis and advisory.
Today, we are the preferred partner for organizations
seeking to understand, compete and grow in
international markets. Our industry expertise and
coverage of over 100 countries enables our customers
to make better informed decisions worldwide.
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

18. Access local knowledge in over
100 countries
GIA Group has 12 offices on 4 continents.
Together with affiliated GIA Member
companies, certified GIA Research Partners
and consultants, GIA provides access to
local knowledge in over 100 countries.
All GIA Network companies adhere to GIA’s
Research and Analysis Quality System as
well as the SCIP Code of Ethics.
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com - page 18

19. We understand your business
With a track record of supporting thousands of clients Industry Practices
Automotive
around the world, we bring you practical expertise in your Chemicals
markets, as well as knowledge from our practices covering Construction & Property Development
11 industries and all the key business functions. Consumer & Retail
Energy, Resources & Environment
Financial Services
Private Equity
Logistics & Transportation
Manufacturing & Industrial
Pharmaceuticals & Healthcare
Telecommunication, Technology & Media
Functional Practices
World Class Market Intelligence
MI for Strategic Planning
MI for Marketing & Sales
MI for Product & Innovation Management
MI for Supply Chain Management
M&A and Partnering
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com

20. International Global Intelligence Alliance Group info@globalintelligence.com
Baltic Region Gateway Baltic baltics@globalintelligence.com
Belgium Global Intelligence Alliance Belgium belgium@globalintelligence.com
Brazil Global Intelligence Alliance Latin America brazil@globalintelligence.com
Canada Global Intelligence Alliance Canada canada@globalintelligence.com
Central & Eastern Europe EasyLink Business Services cee@globalintelligence.com
China Global Intelligence Alliance China china@globalintelligence.com
Finland Global Intelligence Alliance Finland finland@globalintelligence.com
France RV Conseil france@globalintelligence.com
Germany Global Intelligence Alliance Germany germany@globalintelligence.com
Hong Kong Global Intelligence Alliance Hong Kong hongkong@globalintelligence.com
India Global Intelligence Alliance India india@globalintelligence.com
Japan McRBC japan@globalintelligence.com
Netherlands Global Intelligence Alliance Netherlands netherlands@globalintelligence.com
Russia ALT R&C. russia@globalintelligence.com
Singapore Global Intelligence Alliance Singapore singapore@globalintelligence.com
South Africa Butterfly Effect Intelligence southafrica@globalintelligence.com
Tunisia Tunisie RV Conseil tunisia@globalintelligence.com
UK Global Intelligence Alliance UK uk@globalintelligence.com
United Arab Emirates GCC Consulting uae@globalintelligence.com
USA East Coast Global Intelligence Alliance USA East Coast usaeast@globalintelligence.com
USA West Coast I.S.I.S. – Integrated Strategic Information Services, Inc. usawest@globalintelligence.com
Green Supply Chain Management in Asia-Pacific | Aug 2009 www.globalintelligence.com