Supplier Sustainability
Supply base sustainability benefits business, customers, suppliers and the environment
Sustainability is part of our mission at Johnson Controls and a core value. But it’s not confined to what the company does at its own facilities. We expect suppliers to share our values and act responsibly toward their employees and the environment.
“Our supply chain includes 16,000 direct materials suppliers whose carbon footprint is many times larger than our own factory footprint,” said Carolyn Woznicki, vice president of global purchasing for Johnson Controls Building Efficiency and chairman of the Global Purchasing Council. “If we can improve our supply chain in terms of carbon emissions, we can have a huge impact.”
The Global Purchasing Council has specified expectations for supplier performance and made sustainability part of its assessment of suppliers.
Raising awareness and action among suppliers
In 2008, Johnson Controls joined the Carbon Disclosure Project – an independent not-for-profit organization which maintains a database of member companies’ reported carbon emissions. The CDP encourages investor members to get their suppliers to participate by responding to the CDP Supply Chain questionnaire on emissions and sustainability. In 2010, the company invited 144 suppliers to participate in the questionnaire. That’s up from 78 in 2009 and 39 in 2008.
The positive impact of improving supplier sustainability
Having a more sustainable supplier base yields multiple benefits:
- Reducing energy usage reduces costs for suppliers, Johnson Controls and our customers.
- Sustainability practices reduce business risk.
- The environment benefits from reductions in carbon emissions.
Promoting supplier sustainability also enhances our brand image among customers, socially conscious investors and employees. “Our suppliers have a great impact on their communities and fostering awareness and action in sustainability yields long term benefits,” Woznicki said. “What we’re doing with suppliers shows that we don’t just talk about sustainability, we do something about it.”