Supply Chain Resilience and the Environment

Thank you for this opportunity to speak. I should say that I sit on two of the Mineral Products Association committees and therefore try to speak for a wider constituency than just the aggregates industry. The minerals I refer to are the solid, non energy, industrial minerals.

Perhaps I may make a couple of general points and then address some of the questions that were posed to the speakers:

1. I find it interesting to consider the minerals industry and our place in the supply chain, and the interaction with our own company supply chain. Of course there is no single supply chain, rather a complex web - my industry provides materials that go into steel, electronics, and tyres, all of which are used to build heavy machinery that we use to mine the materials. Any producer of anything is both part of a supply chain and the end user of it's own chain. We in minerals have to focus on the items that are critical to us and/or thatwe can influence, and the issues that threaten our own ability to contribute to the Society supply chain.

From the company point of view I suppose we try and minimise the risk to us by careful procurement - using suppliers that are financially sound, adopt sustainability principles of their own and are therefore alive to the issues, and we'll use or at least identify several sources of supply such that we try and avoid putting all the eggs in one basket.

2. Minerals is a bit of a Cinderella industry in many ways because we are right at the beginning of the supply of materials to Society at large - my oft stated Food, Water, Shelter, and Warmth point about the four basic human needs.

The members of the Mineral Products Association support (in 2011) an annual £400 billion turnover of industries using mineral products, and over 2.5 million people employed by those industries. We put a million Tonnes of mineral or finished products into the national supply chain each working day. So supply chain risk to us is a risk to many other business sectors.

What actions are businesses taking to manage supply chain risk or scarcity? How great is the level of awareness?
Procurement processes I have already touched upon.

For climate change and water our main actions divide into changing working processes on the ground - trying to minimise our own environmental impact at each step of our processes - and engaging in the debate or research elsewhere. We are heavily involved in emerging legislation on Carbon, Biodiversity, and Water Resources. Part of our licence to operate risk would be poor legislation driven by physical climate change issues and the way to minimise that is to engage.

Awareness certainly in natural resources industries (food, minerals, engineering) is much higher than it was 3 or 4 years ago, and more widely spread within organisations but I cannot speak for industries that have a less direct connection with the environment - busnesses perhaps in the middle of a supply chain or smaller sectors that do not have the time or staff to really concentrate on the wider picture.

What is driving awareness? Have there been specific events that have opened business eyes?
The weather, all the media stories, internal company ambassadors, the news, all contribute to making awareness widespread nowadays - what probably has further to go is acceptance of the issues. We are all aware of people who say "if the world is warming up why do we have such a cold spring?" But there are gaps. For instance the recent gas shortage alleviated by a single LNG tanker arriving in the UK hit the headlines, but the minerals crisis in Europe of a few years ago - that gave rise to the Raw Materials Initiative - went largely unoticed by the public.

Specific events in my sector include disruption due to flooding, temporary shutdown of sites due to lack of process water, and indeed prosecutions for technical breaches of licences. Then there are geopolitical issues such as when the second Gulf war was at its height and Afghanistan was warming up, there was a worldwide shortage of large earthmover tyres - some of the main manufacturers being American and their requirement (Patriotism Act?) to first supply the military.

What support is needed from Government to encourage the integration of supply chain sustainability?

  • Certainly advice and communication through a range of media.
  • The creation or retention of forward looking support such as the Climate Change Adaptation Committee and working groups on future responsive legislation. The Water Bill 2012 promises to introduce such responsive legislation in water resources and much of the debate thus far with Government departments has been very fruitful. There may be other sectors that need the same treatment.
  • Encourage a diversity of supply chain manufacturers - the Rare Earths from China and eggs in baskets point - including supporting home grown suppliers to minimise both environmental and geopolitical risks. Fiscal and legislative measures have a role to play.
  • Ensure that UK supply chain operators enjoy a level playing field in the global context.

Is a platform needed to share information across the supply chain?
I think the CBI, the British Chambers of Commerce along with professional bodies and Trade Associations probably offer adequate platforms for communications - the challenge is perhaps resourcing the data handling and boiling down the vast amount of information to the key issues and the issues that can be influenced.

That's where events such as this and organisations such as WSBF perform a valuable role in hosting and guiding the debate, signposting valuable documents to busy people, and I thank you.


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Responding to DEFRA at the MIRO Review of Aggregates Levy Sustainability Fund Research Projects, Wellington Arch, London - 12th March 2008

Minister, Ladies and Gentlemen:

It is a privilege to be able to respond on behalf of the Mineral Industry Research Organisation to DEFRA's Review of the Sustainability Fund Research Projects. MIRO and English Heritage have selected a most interesting venue for this launch and The Wellington Arch is perhaps slightly more relevant than many people might at first think.

Read more about - Responding to DEFRA at the MIRO Review of Aggregates Levy Sustainability Fund Research Projects, Wellington Arch, London - 12th March 2008...

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