Consumers around the world are voting with their wallets against unsustainable brands. So it’s not surprising that businesses are racing to add value to their offering through sustainability claims. But these claims work only if they’re fully substantiated. Studies show that customers want brands to tell credible stories based on scientific facts and data.
Businesses with robust sustainable procurement programs in place find that traditional procurement metrics improve when they include suppliers’ sustainability performance into the equation. Sustainability performance also bears a considerable impact on related costs, such as those around setting up and managing suppliers.
The coronavirus pandemic has tested business sustainability management systems to their limits. And it has also shown how businesses with robust supplier-monitoring systems -- which are typically part of larger sustainability initiatives or sustainable procurement programs -- are better able to manage these risks.
Seven Key Levers of Measurable Value Creation when Companies Commit to Sustainable Supply Chain
In the growing movement toward stakeholder capitalism, investors, customers, employees and the public are demanding that businesses -- including their value chains -- serve a social purpose. Businesses have been committing to reduce greenhouse gas emissions, eliminate slave labor, provide decent work conditions, conserve resources, while delivering financial results.
Visionary CEOs and executives recognize that sustainability isn’t an either-or scenario. Consumers, legislators and investors increasingly look to corporate businesses to serve a social purpose.
Committing to purpose and aligning with the SDGs is good for business and society. Improving sustainability performance in the supply chain is key in driving results. Find out how leaders are turning to procurement to take action on the SDGs and improve sustainability performance among their suppliers.
What motivates procurement and sustainability managers to drive ambitious programs to instill sustainable practices among thousands of supply chain partners worldwide?
How is sustainable procurement impacting the way business partners collaborate at all levels of the value chain - from large and medium-sized enterprises to small, family-run businesses around the world?
For years, the financial landscape for sustainability has been plagued by bottlenecks, constraining much-needed action. Sustainability projects were frequently held up, for example, because Chief Financial Officers (CFOs) were wary of “too long a time-to-ROI”.
Procter & Gamble’s Vice President Purchasing Strategy, Jan Geisler, believes the markets will remain volatile for some time to come and intends to invest into transparency and partnerships within the supply chain to build resilience.
The pandemic has exacerbated deep-rooted social and racial inequities, opening the door for new conversations on how we can build a more equitable future. The events of 2020 have elevated the importance of ESG’s “social” pillar for companies and their stakeholders. As factories scrambled to ramp up production despite staff shortages and government lockdown measures, supply chains were exposed to even greater risks associated with working conditions, health and safety, workers’ rights, child labor and modern slavery.