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2017 Green Supply Chain CITI Index released

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  The CITI Index is the world"s first quantitative evaluation system based on the environmental management performance of brand supply chain in China. It is jointly developed by the Public Environmental Research Center (IPE) and the Natural Resources Conservation Association (NRDC), using government supervision, online monitoring, corporate disclosure, etc. The data was evaluated dynamically.
  This issue of the CITI Index is released through the 2017 Green Supply Chain Forum. The forum was jointly sponsored by the China-ASEAN Environmental Protection Cooperation Center, the Public Environmental Research Center, the Alashan SEE Foundation, and the American Environmental Protection Association. The representatives of the government, enterprises and environmental organizations attended the green supply chain related policies and practices.
  During the evaluation period, 59 brands promoted 1004 suppliers to disclose their violations or emission data through green procurement. Since the launch of the green selection supply chain project in March 2007, the brand has accumulated a number of suppliers. 4270.
  The top ten brands in this review are: Apple, Dell, Levi’s, Esquel, Adidas, M&S, Foxconn, GAP, Samsung and Puma. The top ten are from the IT and textile industries, indicating that the two major industries in China"s supply chain environmental management is at a leading level.
  Apple topped the list with 82.5 points, followed by Dell, becoming the second brand with a total score of more than 80 points per year. The third-ranked Levi’s score also reached 76.5.
  Huawei continues to lead the Chinese mainland brand, and its performance can be compared with international leading brands. In the real estate industry that was first included in the evaluation, Landsea Green Real Estate entered the TOP30 brand by extending the supply chain environmental management to the upstream steel, cement and glass.
  This evaluation coincides with the implementation of the central environmental protection inspectors throughout the country. Environmental protection inspectors have made local officials feel the pressure, and may also lead to a significant increase in corporate illegal costs. However, this evaluation shows that many evaluation industries such as automobile, paper, pharmaceutical, chemical, food, and shared bicycles are not prepared for this. The “Schaeffler Discontinuation” incident in September 2017 highlighted the supply chain risks brought about by the automotive industry’s long-term disregard for supply chain pollution.
  Ma Jun, director of the Public Environmental Research Center, said: "The cost of polluting people has been low for a long time, leading to bad money in the market to drive out good money, and also to make green procurement economically stressed. China strengthens environmental supervision, in the long run there are Conducive to the internalization of pollution control costs in the entire industry chain, ultimately will make green supply chain construction an inevitable choice for successful enterprises."
  In this evaluation, a number of leading brands have begun to extend supply chain management upstream to industrial park sewage plants and hazardous waste treatment units to control the possible operational risks. Seven brands, including Apple, Dell, Esquel, Marks & Spencer, and Wal-Mart, have integrated their suppliers" centralized wastewater treatment facilities into their environmental compliance search. Levi’s and Ericsson first promoted an independent third-party audit of the super-standard wastewater treatment plant.
  Apple, Dell, Samsung, Panasonic, Huawei and other IT industry brands have pushed suppliers to control hazardous waste disposal. Apple, ranked No. 1 in this issue, took the lead in incorporating metal raw material manufacturers into the environmental management of brand suppliers, and promoted an aluminum supplier to explain violations and corrective measures.
  Textile brands began to pay attention to the environmental load of chemical dye additives in the production process. Esquel Group successfully promoted the illegal dye suppliers to publicly explain their regulatory records and independent third party audits.
  This evaluation found that in the face of greatly strengthened government supervision and social supervision, the construction of green supply chain in the automotive, paper, pharmaceutical, chemical, chemical, food, leather, shared bicycle and other industries, still seriously lag behind.
  In addition to lack of awareness, lack of ability also seriously restricts the green transformation of brands and suppliers. With a large number of suppliers, high-risk links in the upstream, complex regional and industry standards, and a large number of decentralized regulatory data, large multinational companies are also facing challenges. For inexperienced mainland Chinese brands and suppliers, the capacity bottleneck is even more prominent from the management system to the resource manpower input.
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