What is it?
Managing the supply chain in a way that accounts for environmental and social impacts.
How does it work?
A Sustainable Supply Chain is the management and execution of various supply chain processes in a way that minimizes negative environmental impacts, promotes positive social contributions, and generates economic value. It takes into account all aspects of a business operation from sourcing materials, manufacturing products, transportation, to disposal or recycling, while ensuring that it supports long-term ecological balance and social equity.
When is it useful?
In a business context, a sustainable supply chain is not just about being environmentally responsible but also about ensuring long-term economic viability. Companies adopt sustainable supply chain practices to reduce waste, optimize resources, comply with regulations, meet customer expectations for responsible practices, and ultimately improve their bottom line.
For instance, businesses can adopt strategies like sourcing from suppliers who follow sustainable practices, using energy-efficient transportation modes, reducing packaging, and implementing recycling or take-back programs for their products.
Real-World Impact
A good example of a company implementing a sustainable supply chain is the multinational corporation, Unilever. The company has committed to sourcing 100% of its raw materials from sustainable sources by 2030. To achieve this, Unilever works closely with its suppliers to ensure they adhere to sustainable farming practices, and it also invests in renewable energy for its manufacturing processes. These efforts not only help Unilever reduce its environmental footprint but also ensure the long-term availability of its raw materials.
How to Get Started
Understanding the concept of a sustainable supply chain is crucial in today’s business environment, where there is increasing pressure from consumers, regulators, and investors for businesses to operate responsibly. Empress’s suite of tools and services supports businesses in their journey towards a sustainable supply chain by providing insights into supplier practices, facilitating traceability of materials, and helping monitor and reduce emissions and waste.
Get the Empress Edge
Adopting a sustainable supply chain is not just good for the environment and society, but it also brings significant business benefits. It can enhance a company’s brand image, help attract and retain customers, reduce costs through efficiency improvements, and mitigate risks associated with resource scarcity, price volatility, and regulatory compliance. It’s a strategic approach that aligns profitability with sustainability and social responsibility.