Episode 11: Global Electronics Council CEO Bob Mitchell on understanding supply chain leverage and market-credible ecolabels

Five Lifes to Fifty

In episode 11, we welcome Bob Mitchell, CEO of the Global Electronics Council (GEC), to Five Lifes to Fifty. Before beginning his tenure at the GEC in 2023, Bob worked at the Responsible Business Alliance (RBA) where he served as Vice President, Human Rights and Environment from 2016. He also has previous experience with Hewlett-Packard (HP) and Hewlett Packard Enterprises (HPE).

The GEC is is a mission-driven nonprofit that leverages the power of purchasers to create a world where only sustainable technology is bought and sold. GEC manages the EPEAT ecolabel, a free resource for procurement professionals to identify and select more sustainable products. In addition, the EPEAT ecolabel is a resource for manufacturers to demonstrate that their products conform to the highest sustainability standards. Since its launch in 2006, procurement professionals have reported purchases of over 2.7 billion EPEAT products, generating cost savings exceeding $30 billion USD and a reduction of over 30 million metric tonnes of greenhouse gas emissions.

In this episode 

Shelley - With your deep experience with supply chain, I thought we could start with how product sustainability changes in a company that has a fully outsourced supply chain compared to one that might have a more vertically integrated supply chain. 

  • Bob - That's a great question. The supply chains of multinational companies has evolved quite dramatically over the last few decades. Ones that were more vertically integrated and the manufacturing owned by, especially in the electronics field, by companies and brands that we know quite well in the late nineties into the early aughts [2000-2010], was outsourced both from an efficiency perspective, cost perspective, and that really led to a complete shift in terms of the leverage that companies have. [00:54]  
  • That's been, I think, further changed by the supplier community beginning to evolve their capabilities as well, going from pure contract manufacturers where they were provided designs by the brands, into moving up that ladder from contract manufacturers into original design manufacturers. So, they actually own the designs in many cases and engage with the brands after the fact. And so that began to change both that leverage within the supply chain, but also very key components of business relationships, like who owns the intellectual property. It's completely changed how companies engage when it comes to specific standards, but in this case, social environmental responsibility standards specifically. [01:29]  
  • And that really begins to affect this space in a couple of ways. One is when it comes to integrating social and environmental standards into product design and manufacturing, as well as the complete value chain. So, these specific standards are very complex and, in some cases, not only begin to affect the price of materials and logistics and shipping, things like that, but also the behavior and policies that a company might have in the supply chain. So that's one. And I think we'll talk a bit more about that as we get into the impact of regulations and voluntary standards as well. But the second area is really around when something runs afoul of social environmental responsibility standards, whether it be environmental specifically, or we get into, for instance, human rights within international supply chains. [02:18]  
  • And how do you remediate those adverse impacts? The UN Guiding Principles on Business and Human Rights actually has a ladder in terms of how you begin to address that, which now with some of the corporate due diligence requirements that are coming out of the EU, is really beginning to move its way over to the environmental space as well. Where you take a look at, ‘Did you cause that adverse impact? Did you contribut

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