IFC Consulting Ltd.

Global warming and Environmental issues

In a United Nations survey, the world's population is expected to be 8.5 billion people in 2030 from the current about 8.0 billion people in 2022 and 9.7 billion people in 2050, in 2100 and to 10.9 billion people more in the center of Africa, also in the developed countries, aging is accelerated.  The world's population, 169 people in 1 minute, 240 thousand people in a single day, 89 million people in one year, has increased, all over the world, died 60 million people and born 140 million people a year. The global issues related to increasing population have been piling up, such as expansion of rich and poor, depletion problem of petroleum resources and global warming problem.
Particularly for environmental issues, in 1992, to stabilize the concentration of greenhouse gases in the atmosphere is the ultimate goal, "United Nations Framework Convention on Climate Change" was adopted, the world is working throughout the world to combat global warming to go in is agreed upon, the United Nations Framework Convention on climate change conference of the Parties (COP) have been held annually since 1995. The UN Summit, which was held in September 2015, the per capita of the entire world in the consumption stage in 2030 (retail and consumption level) of the food waste by half, of the food in the production and supply chain, such as post-harvest loss
and new global warming countermeasures “ Paris Agreement “ have been adopted by 196 countries and areas at United Nations Climate Change conference (COP21) held in Paris in December 2015.


Conventionally, the environmental issues had been setting goals mainly in developed countries, to come here to finally human beings share a problem, developed countries and emerging countries, developing countries while complement each other, activities we come to the stage to proceed with.
With regard to global warming, is not limited to the food, it is also true for every product, surplus production, over supply, there at the very urgent issue is to be suppressed as much as possible the slow moving inventory.

 

Raising the following purposes, goals and strategy and focusing on the organic effective use of the earth limited resources, in cooperation with whom it may concern, utilizing IT technology, we will contribute to the global environment improvement.                                                               

Purpose:   The sustainable prosperity of all mankind and societies, Realization of a

                     decarbonized society

Targets:     The effective use of resources on the earth and countermeasures against

                     global warming 

Strategies: Improvement of CCC (Cash Conversion Cycle) by the suppression of excess

                      production and over supply

 

3 strategic focal points

(1) Inventory Freshness Control 

First of all, while inventory is the fountainhead of profits for business, it also brings about a loss and is only a result of operation.
The word "freshness management" is often used in the food industry and the drink industry, but it can be replaced by time- axis management?
It especially became a buyer's market after the collapse of the 'bubble' economy and from a sellers' market in the FMCG(Fast Moving Consumer Goods) market, and 20 years or more have already passed. General consumer goods,apparel, automotive, electronics and so on, companies have been able thorough timeaxis management, there is no doubt it is a change-enabled companies. I hope many Japanese companies will strengthen further the operation through Japan born freshness management under strong leadership of the management.

 

(2) Cash Conversion Cycle
Regardless of a business scale, the importance of management of a working capital and cash management is mentioned as a management subject.
  In the process of the corporate activity of purchasing products, selling and collecting payment, when paying the purchase price of goods before receipt of money on products sold, in order to compensate for the time lag, fixed cash is needed.
This is called working capital. The working capital is calculated as current assets(Accounts Receivable plus Inventory) minus current liabilities (Accounts Payable) and usually, is positive; you will need that amount of money.
The cash cycle refers to a period after paying a purchase price until it receives proceeds.
As a financial indicator of the efficiency and speed at which the company is to recover the funds, there is a CCC(Cash Conversion Cycle).
In reference to the Western companies, please consider the introduction.

 

(3) Food Loss, Food Waste
Although an advanced nation and about 80 percent of the remainder serve as about twenty percent developing countries now in distribution of world population, consumption of food is respectively called half.
In order to produce the food demand needed for the increase of a population of about 2.5 billion by 2050, about the same farmland as Brazil is newly needed.
A food loss and food disposal occurring is wasting the resources containing water, land, energy, and labor and capital, it has led to greenhouse-gas-emission generating superfluously, and they are global warming and an important environmental issue which participates in a climate change.
I am of the opinion that the root causes are over production and over supply and this is not limited to food, but also all kinds of products.
To suppress the excess inventory is an urgent matter today in the light of environmental issues as well food issues.