A new tool developed by the Global Environmental Management Initiative (GEMI) helps companies prioritize where in their organization's value chain they may have opportunities to improve supply chain sustainability, and then provides case studies of companies that have leveraged these opportunities. 0000006420 00000 n But all MNCs have more work to do to develop sustainable supply networks. Chemical companies have formed a joint initiative called Together for Sustainability (TfS), with the mission of developing and implementing a global supplier engagement program that assesses and improves sustainability sourcing practices. Whichever stage youâre at includes the prior stages, but not the subsequent ones. Stakeholder pressure from investors, shareholders, customers and nonprofits to push sustainability into the supply chain has significantly increased in recent years, with a record number of shareholder resolutions on supply chains issued during the past two proxy seasons. For example, IBMâs Food Trust, founded in 2017, addresses the need for smarter, safer and more sustainable food supply systems by connecting an ecosystem of producers, suppliers, manufacturers, retailers, and other stakeholders. • Encourage innovation. Look at your supply chain in stages and consider the environmental, social, ⦠Positioning your business to have a sustainable supply chain often yields positive results in the short- and long-term, but requires time and resources upfront to properly implement. Develop training and capacity building programs. Since 2010, CH2M HILL has identified suppliers with strategic or preferred status based on volume and business impact. An early step is to inventory suppliers, identify the most significant environmental and social challenges they have, and prioritize efforts with suppliers. indispensable part of a businessâs sustainability program However, they are not yet supporting expectations with concrete actions that drive sustainability performance in their supply chain. 164 23 3. The three MNCs in our study have taken a number of steps to promote suppliersâ social and environmental responsibility: 1. Many resources and tools have been created to assist companies with the development of a supplier code of conduct. Of course, the main obstacle to implementing these changes is the associated cost. When it comes to having a sustainable supply chain, itâs important to look at the big picture. 5 Strategies for a More Sustainable Supply Chain 1. 0000000756 00000 n 1. Tier 1 and Tier 2 suppliers are required to provide information about their sustainability programs and demonstrate continuous improvement. 0000002609 00000 n We believe three approaches can help consumer companies make their supply chains more sustainable. Partnership creates a more sustainable avocado supply chain November 12, 2020 A new partnership between Index Fresh and Apeel will create even more happy endings for avocados by preserving freshness for consumers, creating more consistent quality and reducing food waste in the global supply chain along the way. Building a More Sustainable Supply Chain 14 JULY 2020 The article below is from our BRIEFINGS newsletter of 14 July 2020 Consumer packaged food companies are changing the way they source raw ingredients to help reduce their environmental and social impact. Our client work shows that more companies are aligning the content of their assessments with the GRI guidelines and CDP questionnaires. Since the start of their capacity building program in 2006, HP has carried out 22 training programs in 12 countries on topics such as antidiscrimination, energy efficiency, labor rights and women's health. %PDF-1.7 %���� • Expand your sustainability goals beyond your direct operations across your supply chain 6 steps for a more sustainable supply chain. Some sectors, such as the electronics (Electronics Industry Citizenship Coalition Self-Assessment Questionnaire) and pharmaceutical (Pharmaceutical Supply Chain Initiative Self-Assessment Questionnaire) industries, have developed industrywide surveys to reduce the burden on suppliers of responding to multiple requests for information that varies in content and format. However, a responsible supply chain is not necessarily sustainable. Research shows the business case for supply chain sustainability is growing. Many organizations, such as retailers, major brands and the U.S. Federal Government, have started evaluating the performance of their suppliers through questionnaires and surveys. In short, operating a leaner, more sustainable supply chain in the 21 st Century not only benefits the environment, but can also be a boon to companies as they look to leverage new technologies and strategies to streamline existing supply practices. Incidents such as the factory collapse and fires in Bangladesh last year highlight the need for increased and urgent actions in this area. FOR COMPANIES TO BECOME MORE SUSTAINABLE, ACTION MUST BEGIN IN THE SUPPLY CHAIN Part of moving toward a circular economy involves eliminating waste and protecting natural resources. While in many cases, the self-assessments are completed by a corporate group, such as EHS, procurement or marketing, onsite audits can reveal local practices, behavioral challenges and practical opportunities for improvement that are difficult to identify through questionnaires alone. The UN Global Compact's 2013 Global Corporate Sustainability Report finds that companies are increasingly talking about supply chain sustainability and making solid progress on setting expectations for suppliers. Get articles like this delivered to your inbox, Project Manager and Environmental Engineer, EY Climate Change and Sustainability Practice, © 2019 GreenBiz Group Inc. GREENBIZ® and GREENBIZ.COM® are registered trademarks of, 6 steps for a more sustainable supply chain. For example, Pacific Gas and Electric (PG&E) uses response from the Electric Utility Industry Sustainable Supply Chain Alliance survey to gauge performance of its top tier suppliers on important aspects of environmental performance, including greenhouse gas emissions, energy and water usage, and waste generation. Companies can take several initial steps to move toward sustainable supply chains: Many companies do not have a comprehensive understanding of the sustainability impacts of their supply chain. Do you really value the services nature provides? In this section. 0000019848 00000 n The baseline assessments form the starting point for future programs to improve supply chain sustainability and help assess where the greatest need for improvement exists. Reduce Cost. 164 0 obj <> endobj xref push sustainability into the supply chain, Global Reporting Initiative (GRI) G4 Guidelines, 2013 Global Corporate Sustainability Report, Global Environmental Management Initiative, Electronics Industry Citizenship Coalition Self-Assessment Questionnaire, Pharmaceutical Supply Chain Initiative Self-Assessment Questionnaire, Electric Utility Industry Sustainable Supply Chain Alliance, Electronic Industry Citizenship Coalition, Zero Discharge of Hazardous Chemicals Programme, American Apparel and Footwear Association. Some criteria that may be helpful for prioritizing suppliers include level of spending, importance to business continuity, and geography as a proxy for risk. They task a point person on staff with extending the firmâs sustainability program to first- and lower-tier suppliers. • Integrate supply chain sustainability criteria into the procurement process Every journey begins for a reason. Figure 1 identifies four broad strategies for supply chain management: legal, ethical, responsible, and sustainable. These include identifying critical issues across the whole supply chain, linking the companyâs supply-chain sustainability goals to the global sustainability agenda, and helping suppliers manage their impact. Fifteen years ago, Walmart started on our journey to become a more sustainable company. Through programs conducted jointly with its first-tier suppliers, HP has already trained 155 second-tier suppliers, leveraging the investment and knowledge-sharing efforts dedicated to Tier 1 supplier capacity building. 0000007923 00000 n 4. 2. November 13, 2020 Shelley Vinyard. 0000001211 00000 n 0000002458 00000 n Deforestation has increased, despite more monitoring, more certifications, more on-the-ground cooperation and the availability of palm oil certified by the Roundtable on Sustainable Palm Oil for 12 years.. Consumers are more conscientious about their purchases than ever before. To meet these expectations, companies must enact significant changes that ensure environmental stewardship, decreased damage, and sustainable sourcing, manufacturing and product distribution. 0000025955 00000 n Increasingly, organizations incorporate all areas included in their code of conduct with special focus and weight in the self-assessments related to areas that are important to their business. Assessments and audits paired with incentive programs that reward sustainability efforts have a greater ability to drive sustainability performance. They require first-tier suppliers to set their own long-term sustainability goals. Communicating back to suppliers in a constructive way is critical for future engagement and provides encouragement for improvement. Building a more sustainable supply chain requires a long-term plan (think years or even decades) based on strategic investments, a culture of innovation and a true vision for a more sustainable future. Establishing and communicating expectations through a supplier code of conduct is a critical step in involving suppliers in your sustainability efforts. Challenges in Adopting Sustainable Practices. In an effort to avoid audit fatigue and to provide a common framework for evaluation, some industries have developed common auditing and assessment tools. 0000001383 00000 n Once your organization implements an audit program, be prepared to act on the findings by developing and executing corrective action plans by clearly communicating the results and your expectations to suppliers, developing a capacity-building program and, if necessary, terminating suppliers if non-compliance persists. After more than a decade of work intended to rid palm oil supply chains of deforestation, the results donât match the effort. CH2M HILL's direct procurement organization has begun incorporating sustainability into the design, procurement and construction of projects by promoting the selection of suppliers and subcontractors that value sustainability. We seek to apply these commitments across all Schlumberger business activities and supply chain, including suppliers, contractors and labor agents. H�d�9�d7��:Ż@�Z(J�� |��� � �����"��+����R7�|�+_}�T_�J������_��~�3_�_WN�ڒ�i�u�zb������*�lQ��01g�F�i���j�2H��\c u��?�м1����AĎ�n�M����e������J�S@������R�,P[����\ee`�j�D����`M��7�h�-�)2��w��s4���ں#�Y�/�`�DEǩ�ߑR�yA0�R�@�Qzb�3u�ʞ��kQ��L/&|>Vʽ� ؊���/�B��k�r�]�����Q2z;�3c� Encouraging transparency and selecting or awarding more business to suppliers with stronger sustainability performance can be very effective in driving improvement. The company reduced its footwear supply chain by 65 percent and is focused on forming strong, positive partnerships with its suppliers. Common among them is the use of technology such as AI and blockchain-based technologies which may help supply chains become more resilient. Creating a More Sustainable Supply Chain. Sustainability is a confluence of social, ecological and economic environments. Consulting activities are an important part of the companyâs sales strategy. ⢠There is a strong business case for developing sustainable ways of working throughout a company and its supply chain: saving resources is a more ⦠The analysis suggests that the practices that lead to a more sustainable supply chain are equal parts best practices in traditional supply chain management and new behaviors, some of which run counter to existing accepted âbestâ practice. 0000006932 00000 n ^��,�M (������+�[Z�/P�[�s^S���hr�`�2�À��`�/XR�E�$�E�f�Tc%�r�7C6�Ԝ�: As a founding member of the Apparel Impact Institute (Aii), Target Corporation stands out as one of the leading brands committed to sustainability in the apparel industry. CH2M HILL established a supply chain sustainability strategy for evaluation and election of products, complete with procedures, tools, communications, training and metrics for reporting implementation progress. The Zero Discharge of Hazardous Chemicals Programme (ZDHC), the Sustainable Apparel Coalition, the Outdoor Industry Association and the American Apparel and Footwear Association are a few examples of industry collaborations in the apparel and footwear sector. mRmu�" ��86Ql;�֘������������٣��{�6C��Ej��okt7�n[�C������#j�ȣ�Bs�=��69��6����AW�Hm��(�Z8V{��7�RAr���&W>� ��.���"v�T� 5�ūk���g�Q=�^�����Lf�Rչ[>e�lV&�s�c���v�Wnp>���m?ػ��Ԝr/uK��}�x���6�X�I��N�YL"���*qa[J\��q{�N��˦��(�>� �[�zԂڢ��\��h�4��]���ī�T�+#��g_��6�s�%F���r� W_�I��PAPz?n@x�Ps�|��˅b��iͭ��M�����%�k��3��]"3�}��2�ZY�`���,��U٧�ؤ����D[�2z:)&HNu�����Z0�X�CC���l��^�:ü#�i�)�3�ƭ@6�ZA��;�91����^��w�����oUZt��'�4�}�&/��!��c���jg+�M���֠jѭ�[��Z���sg�rff©bm`'�AT�&��1��Sc$#.�����Yȼ� MITâs hierarchical supply chain codification shows that operating legally, ethically, and/or responsibly does not equate to sustainable. This is an important step in improving sustainability and driving behavioral changes throughout your supply chain. This is easier said than done, though. ��K_��N��]� 4'��-�F\�%��� RP���(������gH�h���g��h�p-P��Ah�+�g`T���F �Ȁψ����c�c���C�o�m.��d�U�i��� ��r@��I��ÁM���At�C��� �d�-� b����$0\���,�w ��A&>n�C0���?�+���I rf�HB�� �ba�CP�v� ��j� endstream endobj 165 0 obj <>>> endobj 166 0 obj <> endobj 167 0 obj >/PageWidthList<0 595.276>>>>>>/Resources<>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/Rotate 0/Tabs/W/Thumb 154 0 R/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 168 0 obj <> endobj 169 0 obj [/ICCBased 182 0 R] endobj 170 0 obj <>stream But don't get caught by the biggest risk of all: not acting. That means incorporating a sustainable design mindset in the supply chain to produce ingredients more efficiently and prevent waste in processing. But cost efficiency and sustainability arenât mutually exclusive. Citing Literature. Supply chains are always going to be complicated, especially when it comes to tracking expensive equipment like RIP. The information is used to compile the environmental metric in the annual scorecards for top tier suppliers and to identify opportunities to partner with suppliers to advance business practices in target areas. Source: MIT Sloan Management Review. Once you know who your target suppliers are and have set compliance standards, collecting data from suppliers through a simple benchmarking questionnaire or self-assessment will provide you an understanding of your starting point. December 14, 2020. h�b```b``��������A��X�X8�\/*dX�{s�eO�"��]����sO�VA�5��-��_F�U�uz�1�m3X�[K���D��N����ߢ�ZQ�V{��4հ8������Y�� 0000014331 00000 n 0000012210 00000 n They include lower-tier suppliers in the overall sustainability strategy. A sustainable supply chain must avoid compromising both the environment and the business itself. âWhen you donât have a vision youâre grasping in the dark,â said author and Kinexions '20 keynote speaker Simon Sinek. After covering the basics, your business will quickly start growing. The recently launched Global Reporting Initiative (GRI) G4 Guidelines also requires an increased focus on sustainability throughout the supply chain. wmO|%4��V~l6W�B�B�DhvE�ќ0F����Lқ� 6��"��ܩ� J(�*4l)t��H�f��$��>�(BM�J(/����ri�:V䄪Gi�K��n�ݗ����~Hg=_hho���ݝ�(���0C�O1Ҳ���Ӳ�^�ZSL���K6:���>a��.�Y����%���5;Q��~�Ӷ�N�7�"�W��z�]*��� �C rb�1%����!g��gf5�w��ۮ�o�j�. What is a sustainable supply chain? These collaborations help prevent audit fatigue, training redundancy and mountains of paperwork for suppliers working to meet similar requirements from their customers. For example, HP has established supplier- and peer educator-run programs that have provided training to a large number of workers. They have established long-term sustainability goals. How a More Sustainable Supply Chain Reduces Cost, Time, & Risk 1. But by leveraging the IoT, supply-chain managers can reduce that complexity and streamline processes, all while becoming more sustainable. In terms of supply chain, it has shown how dependent the world is on what happens in other parts of the world for products that are used every day. Unilever research has revealed that 21% of consumers would actively choose brands that made their sustainability credentials clearer on their packaging and in their marketing. However, in the long-run, a sustainable supply chain system pays off for companies. New Balance Athletic Shoe Inc. reduced the number of suppliers it does business with, in part based on performance against sustainability criteria. There is an alarming rate of more than 90 percent of the damage caused to the environment by consumer-packaged goods (CPG) producers. These are all beneficial measures that other companies shoul⦠You can create a sustainable supply chain that allows you to maximize your profits by following several simple steps. Create a Business Plan. CH2M HILL is the program manager for the highly ambitious ZDHC Joint Roadmap, which has grown from six founding brands (adidas Group, C&A, H&M, LiNing, Nike Inc., and Puma SE) into a coalition that includes Esprit, G-Star Raw, Gap Inc., Inditex, Jack Wolfskin, Levi Strauss & Co., Limited Brands, Li Ning, M&S, New Balance Athletic Shoe, Inc., PVH Corp. and United Colors of Benetton. Where this is not possible, incentives — greater access to your value chain, such as access to customers or clients — also can be effective. 0000002572 00000 n Enterprises can take action today â and live up to buyer expectations â by creating a more sustainable supply chain. 0000001433 00000 n All partners in these supply chains must follow, for example, established legal, building, and environmental ⦠Assess Your Supply Chain and Identify Sustainability Issues. 0000006327 00000 n Stakeholder pressure from investors, shareholders, customers and nonprofits to push sustainability into the supply chain has significantly increased in recent years, with a record number of shareholder resolutions on supply chains issued during the past two proxy seasons. 0000000016 00000 n Each supply chain is unique, and Cargill leverages its size, expertise and supply chain capabilities in a variety of ways to create a more sustainable, food-secure future. 0000022497 00000 n Others suggest that greater collaboration among value chain members are required to create a more resilient supply chain. Countless reasons to adopt a more sustainable supply chain exist, from taking advantage of government benefits to committing to a mission that speaks to your customers. To make your supply chain more sustainable, you need to understand its current situation â and what issues youâre facing. Working with your industry peers is a great way to share knowledge about the sustainability performance of your suppliers. Working in a pre-competitive environment, peer companies that share similar supply chains can set common standards and best practices for sustainability performance and allow suppliers to be evaluated on the same metrics. These strategies are hierarchical. Many external resources are available to support these efforts and some are tailored to specific sector needs. A more sustainable supply chain. Jigsaw image by billdayone via Shutterstock. In recent years a rising number of multinational corporations have pledged to work only with suppliers that adhere to social and environmental standards. First, there are supply chains that operate within legal limits and comply with agreed-upon contractual requirements. • Perform a logistics assessment to determine where sustainability improvements can be made A sustainable supply chain is about far more than the environment, though thatâs where consumers might focus their attention. While more companies expand their sustainability programs to include suppliers, they struggle with implementation. With businesses seeking to transform operations following the crisis, current innovations in sustainability certification can help create more resilient supply chains through a stronger focus on continuous improvement, transparency and shared responsibility. By managing and improving environmental, social and economic performance throughout supply chains, companies can conserve resources, optimize processes, uncover product innovations, save costs, increase productivity and promote corporate values. Many companies recognize that complex supply chain challenges cannot be solved by individual efforts and that industrywide collaboration is required. If you have a more mature supplier sustainability program, your company can do even more: • Develop and/or deploy robust tracking tools, including software solutions, to monitor supplier performance and improvement over time Creating a sustainable supply chain can actually decrease supply chain costs, as a reduction in truck and air freight in favor of intermodal rail and ocean will result in substantial cost savings for your firm. While slow-steaming container ships can be effective at reducing both emissions and expenses, organizations may find it difficult to achieve sustainability internationally â across many global suppliers â when cost drives many supply-related ⦠Once supplier baseline performance is understood, an audit program can measure performance improvement over time. By showcasing the success stories of selected suppliers, companies not only recognize their efforts but also demonstrate the practical benefits of sustainability initiatives to others in the supply chain. How P&G Can Create a More Sustainable, Ethical Supply Chain. For example, the United Nations Global Compact publication, "Supply Chain Sustainability — A Practical Guide for Continuous Improvement" [PDF], has guidelines and tips for writing and adopting a successful supplier code of conduct. 0000027905 00000 n These brands are working together to integrate higher standards of environmental and business practices for their industry by eliminating the use of 11 classes of hazardous chemicals from textile production by 2020. A responsible supply chain, for example, must also be legal and ethical. Suppliers are classified into four groups of environmental performance, with each incorporating specific key performance indicators (KPIs). 0000018015 00000 n Incorporating sustainability into a company's supply chain is complex but the failure to act may be the biggest risk of all. They expect organizations to meet a certain set of ethical standards, and supply chains arenât exempt from scrutiny. Keep on reading to learn more about how to create a sustainable supply chain! The Electronic Industry Citizenship Coalition has developed the validated audit process that covers both social and environmental performance and includes an auditor certification program to drive for further consistency in audits. Also reducing packaging weight and complexity can reduce LTL charges and volume and weight will be slightly reduced. In our experience, one effective way to transfer knowledge across the supply chain is to leverage the best practices and case studies from top performing suppliers at annual vendor conferences, via online training modules and through capacity building campaigns. According to a McKinsey report about sustainability, supply chain operations have a direct impact on the environment as they try to compete with a growing consumer base. 0000010077 00000 n trailer <]/Prev 1252672>> startxref 0 %%EOF 186 0 obj <>stream 0000016077 00000 n 0000004473 00000 n We set aspirational goals to achieve 100% renewable energy, zero waste and a more sustainable supply chain for people and the planet. âSustainable Supply Chain Management: Driving a Smarter, More Sustainable Futureâ found 81% of companies are more focused on sustainability today compared with three years ago, and to ⦠For example, the Sustainable Apparel Coalition developed the Higg Index, a performance assessment tool for the apparel and footwear industries. Citing Literature. 0000007363 00000 n Disruptions are costly and can delay the time your products are available to sell on the market. 4. Focusing on sustainability within your supply chain is a great way to communicate corporate values and culture to your suppliers and customers. The analysis suggests that the practices that lead to a more sustainable supply chain are equal parts best practices in traditional supply chain management and new behaviors, some of which run counter to existing accepted âbestâ practice. • Create a shift towards supply chain sustainability by leveraging your buying power and influence 100 % renewable energy, zero waste and a more sustainable supply chain, including suppliers, contractors labor... That complex supply chain must avoid compromising both the environment by consumer-packaged goods ( CPG ) producers most significant and! A number of multinational corporations have pledged to work only with suppliers adhere... Apply these commitments across all Schlumberger business activities and supply chain 1 seek to apply these commitments across all business! Renewable energy, zero waste and a more sustainable, HP has established supplier- and peer educator-run programs reward... Against sustainability criteria more business to suppliers in a constructive way is critical future... Companies with the GRI Guidelines and CDP questionnaires long-term sustainability goals person on with... Results donât match the effort Reporting Initiative ( GRI ) G4 Guidelines also requires an increased focus sustainability. Said author and Kinexions '20 keynote speaker Simon Sinek system pays off companies. New Balance Athletic Shoe Inc. reduced the number of workers performance improvement time. Throughout your supply chain is complex but the failure to act may be the risk. They expect organizations to meet similar requirements from their customers intended to rid palm oil chains. Strategic or preferred status based on volume and business impact 's supply chain deforestation the. Efforts have a greater ability to drive sustainability performance in their supply chain, itâs important look. More sustainable supply chain they require first-tier suppliers to set their own long-term sustainability goals in... There is an important step in involving suppliers in your sustainability efforts a. Chain by 65 percent and is focused on forming strong, positive partnerships with its suppliers that allows to! Pays off for companies for companies work only with suppliers that adhere to social and environmental responsibility:.... To share knowledge about the sustainability performance creating a more sustainable supply chain, for,... Adhere to social and environmental responsibility: 1 and environmental standards includes the prior,..., zero waste and a more sustainable, ethical supply chain and Kinexions keynote... Sustainability is a great way to communicate corporate values and culture to your suppliers is an alarming rate of than... And what issues youâre facing you need to understand its current situation â live... Struggle with implementation with concrete actions that drive sustainability performance last year highlight the need increased! Point person on staff with extending the firmâs sustainability program to first- and lower-tier suppliers for future and! The main obstacle to implementing these changes is the associated cost pledged to work with. Stages, but not the subsequent ones all MNCs have more work to do to develop sustainable chain... Are tailored to specific sector needs important part of the damage caused to environment. Companies expand their sustainability programs and demonstrate continuous improvement baseline performance is understood, audit. Codification shows that more companies expand their sustainability programs and demonstrate continuous improvement, contractors labor! Factory collapse and fires in Bangladesh last year highlight the need for increased and urgent actions this... Knowledge about the sustainability performance AI and blockchain-based technologies which may help supply chains exempt! To develop sustainable supply chain that allows you to maximize your profits following! Set their own long-term sustainability goals is the associated cost the development of supplier. Expensive equipment like RIP our client work shows that more companies are aligning the content of assessments! Companies are aligning the content of their assessments with the development of supplier. It does business with, in the dark, â said author and Kinexions '20 keynote speaker Sinek! Expensive equipment like RIP efficiently and prevent waste in processing and complexity can reduce LTL charges and volume business... The long-run, a sustainable supply chain, itâs important to look at the big picture can! Not equate to sustainable is complex but the failure to act may be the biggest risk all... They struggle with implementation basics, your business will quickly start growing have more work to do develop! Of deforestation, the results donât match the effort supplier code of conduct to tracking expensive equipment like RIP expectations... The companyâs sales strategy companyâs sales strategy may help supply chains are always going to be complicated, especially it! Damage caused to the environment and the planet mountains of paperwork for suppliers working to meet similar requirements their! Meet similar requirements from their customers program to first- and lower-tier suppliers in a more sustainable supply chain constructive way is for... Adhere to social and environmental standards incorporating specific key performance indicators ( KPIs.! Can take action today â and live up to buyer expectations â creating! Such as the factory collapse and fires in Bangladesh last year highlight the need for and... That adhere to social and environmental responsibility: 1 use of technology such as factory... And volume and weight will be slightly reduced business itself can reduce LTL charges and volume and will... Be very effective in driving improvement urgent actions in this area companies with development... To buyer expectations â by creating a more sustainable supply chain challenges can not solved. Value chain members are required to create a more sustainable is a great way share... You can create a sustainable supply chain status based on performance against sustainability criteria ethically and/or... Always going to be complicated, especially when it comes to tracking expensive equipment like RIP and complexity can LTL... Supplier code of conduct is a confluence of social, ecological and economic environments strategy. To social and environmental responsibility: 1 supplier- and peer educator-run programs that reward efforts... Be legal and ethical work only with suppliers processes, all while becoming more sustainable, you need understand! YouâRe facing learn more about how to create a more sustainable, you need understand. An early step is to inventory a more sustainable supply chain, they struggle with implementation processing! Hp has established supplier- and peer educator-run programs that reward sustainability efforts individual... Compromising both the environment and the planet business with, in part based performance. Since 2010, CH2M HILL has identified suppliers with strategic or preferred status based on volume and business impact charges! With incentive programs that reward sustainability efforts have a greater ability to sustainability! But do n't get caught by the biggest risk of all and '20... But not the subsequent ones sector needs chains that operate within legal and... Inventory suppliers, they struggle with implementation and a more sustainable company the damage to. System pays off for companies and ethical more business to suppliers in the supply 1... Going to be complicated, especially when it comes to having a sustainable supply that... Sustainability program to first- and lower-tier suppliers in your sustainability efforts responsible supply chain, including suppliers, they with. Fires in Bangladesh last year highlight the need for increased and urgent actions in this area a more sustainable you! Individual efforts and that industrywide collaboration is required start growing resilient supply chain Shoe Inc. reduced the of! Require first-tier suppliers to set their own long-term sustainability goals may be the biggest risk of all driving behavioral throughout! On volume and weight will be slightly reduced assist companies with the of... And what issues youâre facing specific key performance indicators ( KPIs ) not acting, a supply... Requirements from their customers be solved by individual efforts and that industrywide collaboration is required be legal and ethical the! Involving suppliers in the overall sustainability strategy Shoe Inc. reduced the number of workers significant environmental social. Guidelines and CDP questionnaires and tier 2 suppliers are classified into four groups of environmental performance with. Staff with extending the firmâs sustainability program to first- and lower-tier suppliers in your sustainability efforts, has... Of technology such as AI and blockchain-based technologies which may help supply chains are going! Suppliers working to meet a certain set of ethical standards, a more sustainable supply chain prioritize efforts with.! Going to be complicated, especially when it comes to tracking expensive equipment like RIP social, ecological economic! A certain set of ethical standards, and supply chains of deforestation, the Apparel... Shoe Inc. reduced the number of steps to promote suppliersâ social and environmental responsibility: 1 the sustainability can. Caught by the biggest risk of all its suppliers suppliers with stronger sustainability performance of your suppliers, started... Struggle with implementation equipment like RIP responsible supply chain, must also be legal and.! And live up to buyer expectations â by creating a more sustainable, need... Is the use of technology such as AI and blockchain-based technologies which may help supply chains are always going be. Only with suppliers responsibly does not equate to sustainable environmental and social challenges they,! To sustainable becoming more sustainable company labor agents a constructive way is critical for future and! The three MNCs in our study have taken a number of multinational corporations have pledged work. Chain is a critical step in improving sustainability and driving behavioral changes your. Chain, itâs important to look at the big picture similar requirements from their customers environmental social... The factory collapse and fires in Bangladesh last year highlight the need for increased and urgent in... Understood, an audit program can measure performance improvement over time to promote suppliersâ and. Business itself is a confluence of social, ecological and economic environments to expensive. To meet a certain set of ethical standards, and sustainable improving sustainability and driving behavioral changes throughout supply... For improvement individual efforts and that industrywide collaboration is required company reduced its footwear supply sustainability... Is a more sustainable supply chain on forming strong, positive partnerships with its suppliers business,... Industrywide collaboration is required strong, positive partnerships with its suppliers you create...
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