Operational, financial, regulatory and reputational risks continue to be the major drivers for supply chain sustainability. We embed sustainability across the supply chain and procurement by helping clients map and mitigate risks and identify opportunities to build a business case, design programs, measure impacts, and report progress to internal and external stakeholders

We help companies identify several actions to further endorse sustainability in their supply chains:

• Assess materiality to focus on the most pressing value chain issues, taking into consideration the UN Global Compact principles: prioritizing focus areas helps guide investment, metrics and initiatives across the supply chain, and engagement with key stakeholders

.• Align resources, structures and processes focused on supply chain sustainability across the whole organization: integrating sustainability criteria into the procurement process signals commitment across the organization and to stakeholders; organizational alignment reduces risks and optimizes investment; dedicated resources to supply chain sustainability (regardless of their organizational reporting lines) are critical to the programs’ success, at least in the early stages, due to the required technical experience and time commitment.

• Train management and suppliers on market practices: capacity building and knowledge sharing across the organization and with suppliers help establish the business case for sustainability and lead to innovation.
• Invest in diverse and inclusive supply chain: working with small and diverse businesses results in regulatory compliance in some geographies, and embracing different cultures leads to competitive advantage and innovation, results in direct economic benefits for local communities, such as revenue and income generation, and reinforces the company’s commitment to the communities where it operates/sources
• Stretch sustainability goals beyond direct operations across the tiers of the supply chain: collaboratively working with suppliers to expand the company’s sustainability goals across the supply chain emphasizes the importance of sustainability alongside other commercial and technical criteria, and conveys the company’s values and sustainability commitment.
• Deploy technology to increase accountability, transparency and traceability: technology solutions can result in comprehensive supplier performance assessments as well as internal organizational alignment around supply chain performance metrics, procurement decisions and economies of scale.
• Create a shift toward supply chain sustainability by leveraging buying power and influence: participating in industry collaborations and initiatives not only results in business value to the members, such as access to common tools, databases and knowledge, but it gives a sector a common voice and scalable influence with suppliers by leveraging the combined (human, buying, technical, public relations) power of all partners.
• Disclose supply chain information beyond the sustainability reporting mechanisms: transitioning to integrated reporting reflects a company’s integrated approach to sustainability and helps it reach a much broader audience of stakeholders

• Corporate customers are requiring suppliers to adhere to sustainable practices in order to continue to conduct business together.  Recent research from the Carbon Trust, a non-profit organization, shows that 56% of multinational companies plan to drop suppliers based on low carbon performances.
• Companies that can identify and implement sustainable supply chain practices experience positive public relations due to being perceived as a good global citizen which can yield great benefit.
• Protecting Against Reputational Damage. Stakeholders including investors and customers are increasingly putting pressure on businesses to extend their sustainability policies into their supply chains. This is evidenced by a record number of shareholder resolutions related to supply chain sustainability in recent years, as well as social media pressure on companies to ensure they are viewed as committed to sustainable and responsible business practices.

• Innovating Products and Services. Suppliers that understand a company’s vision and long-term plans are better equipped to suggest changes and ungraded to products and processes, which can improve operations and also help companies accomplish innovation goals.

• Improved environmental footprint
• Stronger relations with suppliers and local communities