Why should you prioritize sustainability in your supply chain?

In my knowledge, sustainable supply chain is like a system that does good for everyone & the planet. 1. Big Picture Thinking:It works to reduce the not-so-great effects on the environment, society, and the economy. At the same time, it aims to create maximum value for everyone involved. 2.From Start to Finish:It doesn't just care about making a product. It thinks about everything – where the materials come from, making the product, how it gets to you. 3. Looking Out for Tomorrow: supply chain isn't just about now; it's about making sure we have what we need today without messing up things for the people who come after us. It's like a system that wants everyone to win & make the world a better place – today and for the future.

A sustainable supply chain integrates environmentally and socially responsible practices throughout its lifecycle. It emphasizes eco-friendly sourcing, ethical labor practices, energy efficiency, and waste reduction. This approach minimizes environmental impact, ensures fair treatment of workers, and supports local communities. Sustainable supply chains prioritize transparency, traceability, and innovation, promoting long-term resilience and meeting the needs of the present without compromising the ability of future generations to meet their own needs. A sustainable supply chain addresses its environmental / social regulatory compliance while factoring environmental, ethical and social considerations in its business continuity.

Cuando hablamos de una cadena de suministros es importante que pienses en todo lo que requieres para que tus productos puedan llegar a manos de esa persona que lo consumirá. Ahora bien quiero que pienses en este momento en ¿Qué pasa después que esto ocurre? Porque todas las huellas que se han dejado, son las que hacen que tu empresa pueda contribuir con su entorno directo e indirectamente con el mundo o no. A mí me gusta más enfocarlo como cadena de VALOR, porque de esta forma es que se le da una mayor relevancia a la cadena de suministro

A sustainable supply chain should guarantee the best possible protection of people and the environment. It means that international humanitarian human rights are respected from the sourcing process to transportation to the end customer. In addition, environmental standards must be maintained, so it must be guaranteed that the environment is not polluted by any business processes.

A sustainable supply chain integrates ethical and environmentally responsible practices into a competitive and successful model. It involves considering the environmental and human impact of products' journey through the supply chain, from raw materials sourcing to production, storage, and delivery. Sustainable supply chain management adds the goals of upholding environmental and societal values to the traditional focus on operations' speed, cost, and reliability. It requires end-to-end supply chain transparency and digital supply chain technologies to achieve unprecedented visibility and accountability in modern supply chains.

Sustainability in supply chains is the most important thing for any organization, as the supply chain occupies a major percentage of organization's carbon footprint and it's sustainable journey. Without achieving sustainability in value chains, we can't claim sustainability status or a product is sustainable!

Sustainability and ESG considerations are rewiring the business world. Developed countries have put in place - Corporate reporting standards (EU CSRD) - Supply chain due diligence standards (EU CSDD) On their largest companies. To remain part of these global supply chains, all businesses will need to ensure that their supply chains are Sustainable and ESG compliant. An example would be Deutsche Bank that requires their vendors to have minimum ESG scores by Ecovadis

For Supply chain to be truly sustainable, your suppliers need to be on board too. It's not just about what your company does directly; it's about making sure the folks you get your stuff from are also working to be eco-friendly. When big companies set goals to reduce their C footprint, the emissions from what they directly control usually make up only a small part, around one fifth only . The majority comes from their suppliers, and even further down the line, those suppliers' suppliers. Also sustainability is about the environment, about treating people right & having good rules in place. So, if you want a sustainable supply chain , engage your suppliers. It's not just about what you do – it's about enjoying the journey together!

Since a product or service LCA depends on the entire value chain and not only the producing/performing company, having a sustainable value chain defines the final impact of a product/service. By cooperating with suppliers and clients all sustainability targets are easier to achieve, whether they relate to waste, water usage, GHG emissions, or transportation. By adopting standards and following the disclosures of the value chain in their annual reporting, a company can make the right choices regarding its partners as well as improve the sustainability performance of its products or services

Supply chain sustainability is the backbone to decarbonisation, hitting corporate or national Net Zero targets, therefore it should be regarded as one of the most important (and difficult) but efficient way to address your product's or service carbon emissions.

If you want a sustainable supply chain, follow these steps: 1. Check Where You Stand:Figure out what you're doing now. Look at your supply chain and see what's good, what's risky, and where you can make a difference. 2. Measure Your Impact:Use tools like life cycle assessment or C footprint and do benchmarking. 3. Set Goals:Think about where you want to go. Goals should match business plan, what people expect, & what others doing. 4. Make a Plan:Take action based on your goals. Choose suppliers carefully, go for eco-friendly options. 5.Keep Tabs on Progress:Use tools like dashboards to monitor and track progress. Remember, it's not just about what you do; it's about telling others about your journey toward a sustainable supply chain.

In some sectors, supply chain assessments already become a requirement to meet the needs of the end customer. Supply Chain Platforms serve as central data source, to track and monitor suppliers backwards and furthermore report on the own sustainability efforts and certificates. In my opinion, these portals should be implemented as legal requirement.

Ein Tracking und eine Priorisierung der Nachhaltigkeitsmaßnahmen ist unerlässlich. Eine Umsetzung der Maßnahmen ohne klare Trennung der Funktionalitäten sowie einer dahinterstehenden Strategie kann perspektivisch langfristig nicht funktionieren.

No creo que priorizar sea el término. O se es sostenible o no se es. Aplicar criterios ESG no puede ser una opción dentro de muchas. No es prioritario sobre Marketing. El área de ventas no es prioritario sobre ESG. O se es o no se es. El inicio del camino será complejo. Los criterios ESG son transversales a todo el negocio. El proceso debe iniciarse mediante fuertes inversiones de tiempo (introspección) de quienes dirigen la compañía, a partir de ahí, la medición de la huella (para conocer la parte alícuota de responsabilidad en las emisiones) debe ser el segundo paso.

Transparency !!! Bring Transparency, educate consumers. How else can we assume to incorporate sustainability in supply chain ? In my opinion, only developed countries can do so, because developing countries will just follow them.

Sustainable supply chains start with knowledge, transparency and traceability. Companies should demonstrate a good grasp of the companies and materials that are in their supply chain, beyond first tier suppliers, and to source for any critical raw materials. For a company to claim that its supply chain is sustainable, it has to show an understanding of the risks and impacts of the companies and materials in their supply chains, and be taking vigilant bold actions to optimise success and mitigate negative impacts. The definition of sustainable supply chains is not fixed, and there are trade-offs. New business models and company reporting against burgeoning regulations will create more evidence of what it means and how it can be achieved.

No one, really no one. Each and every individual have somehow Carbon footprint that also translates to companies. Companies cannot work in silos, they are the organizations of people, process, products. How can a company implement a 100% sustainable supply chain if it is not a company from stone age? You should all think of it!

An exemplary case of sustainable supply chains is Patagonia, the outdoor clothing brand. They've set a high bar in the fashion industry by integrating sustainable materials like recycled polyester and organic cotton into their products. Beyond their product choices, Patagonia is also known for implementing fair labor practices within their supply chain. Demonstrating their commitment to transparency, they regularly make public disclosures about their supply chain operations.

Sustainable supply chains can leverage concepts like industrial symbiosis, where different industries collaborate to share resources, waste, and by-products, fostering a circular economy. For instance, a waste product from one company becomes a valuable input for another, creating a mutually beneficial relationship, saving resources, improving logistics and avoiding emissions, like in BASF's Verbund sites or in the city of Kalundborg in Denmark.

Diese Umsetzungsfortschritte und -erfolge sind auch für finanzierende Banken relevant, da die Daten der Kunden/ Unternehmen, welche von den Banken finanziert werden, später von den Banken genutzt werden können, um ihren ESG Datenhaushalt auf- und auszubauen.

With the digital era, there are countless opportunities to learn more about sustainability in supply chains. One can go through the 'traditional' way by enrolling in courses, for example. Creating a good professional network, joining discussions, forums and events related to your industry is also essential to expand your knowledge. Subscribing to newsletters is important to stay up to date to the new advancements in the field.

If you truely want to learn about stakeholders involved in supply chains, I would recommend to read sustainability reports from companies of your sector. It is obligatory to report on supply chains and the sourcing and purchasement of materials. Therefore, you will discover the most important levers of your branche.

Auch hier ist Kommunikation essentiell, um die relevanten Nachhaltigkeitsinformationen zu erhalten und in Erfahrung zu bringen. Ein gemeinsamer Dialog kann hierbei zusätzlich helfen, um die ESG Daten zu verbessern und richtig steuern zu können.

Indeed, exploring sustainability ratings of industry leaders through platforms like MSCI or Sustainalytics can provide valuable insights. Analyzing their strengths and weaknesses in supply chain sustainability, and searching for details in their ESG report, as assessed by these experts, can inform your strategy Additionally, investigating industry-specific certifications such as LEED for construction or guidelines from organizations like OECD and EMAS by the EC can offer detailed information and best practices. Initiating certification processes like ISO 14001, 25001, 50001, or others is a valuable step. Remember, embracing sustainability should be a systematic, long-term commitment, not just a trend. It's about transforming your company.

To learn more about sustainability in your supply chain, focus on critical areas like sourcing, energy use, and waste management. Conduct audits to evaluate current practices and identify areas for improvement. Engage with suppliers to understand their sustainability policies and practices. Implement tracking systems for materials and energy consumption to monitor and reduce environmental impact. Stay informed about industry standards and best practices in sustainable supply chain management. This approach helps make informed decisions to enhance sustainability in your supply chain.

The GHG of the supply chain has to be carefully monitored and evaluated. To calculate the emissions of supply chain, it is not easy yet possible. There are software solutions that can help companies to map all the processes and identify materials needed to be changed to reduce emissions.

Sustainable Supply Chain is a sweet yet a philosophical concept. No wonder that it is somehow in practice but it cannot be fruitful until it is implemented over the whole world. Else, what will happen? Non sustainable supply chain will outperform the sustainable supply chain, because the former focus on quick profits. So, it should be implemented via United Nations.

Bei dem Blick in die Lieferketten ist es wichtig, dass Nachhaltigkeit im Gesamten beleuchtet wird und nicht nur Teilaspekte der ökologischen, ökonomischen oder sozialen Nachhaltigkeit. Zu Beginn kann sich auf einzelne der drei Teilaspekte fokussiert werden, perspektivisch müssen stets alle Teilgebiete der Nachhaltigkeit berücksichtigt werden.

Analyze your current SC: Understand the current environmental and social aspects affecting your supply chain to identify weaknesses and improvement areas. Define clear sustainability goals and key performance indicators (KPIs) that can be measured and tracked to be realistic. Try to collaborate with suppliers - actively engage with suppliers, educate them on sustainable practices, and explore opportunities for joint supply chain enhancements. Train your workforce in sustainable practices and involve them in the supply chain improvement process. In the beginning stages (and all next stages) measure economic impact: assess any economic benefits derived from sustainable practices and reinvest them for long-term sustainability efforts.

Sustainability in supply chain is essential because as a responsible company, you want to ensure that there are no issues of Human Rights violations in your supply chain along with proper framework in place to ensure safety of people involved and a focus on resources preservation and pollution reduction actions from suppliers. As a company, we want to influence their behavior towards betterment.