What is Supply Chain Sustainability?
Supply chain sustainability refers to an organisation’s effort to reduce the environmental, social and governance (ESG) impact of not just their internal activities but also those of their entire supply chain.
In terms of environmental impact, often businesses believe that acting on only their Internal (Scope 1 and 2 of the greenhouse gas protocol) emissions will cover the majority of their emissions output, however this is not the case, with up to 90% of an organisations environmental impact being created by their supply chain, Scope 3 is more important to address than ever.
But what are the Greenhouse Gas Protocol ‘scopes’ and how do they link to supply chain sustainability?
Scope 1: direct emissions from owned or controlled sources. For example, company vehicles,
Scope 2: indirect emissions from company facilities such as purchased electricity, heating or cooling
Scope 3: all indirect emissions (excluding those of Scope 2) that occur throughout the end-to-end supply chain, incorporating upstream and downstream emissions.
Supply chain sustainability focuses on exploring the environmental (GHG scope 3), social and governance of an organisation’s suppliers, from sourcing raw materials to production, delivery, afterlife and everything in between.
By understanding the end-to-end process flow of a business’ products, and collaborating with suppliers throughout the product lifecycle, an organisation is able to act on environmental, social and regulatory challenges and opportunities to achieve ESG objectives whilst driving positive change in communities and suppliers alike.
Why is having a sustainable supply chain important?
The importance of supply chain sustainability should not be overlooked; for organisations to achieve their sustainability objectives and ensure that their sustainability policies are being adhered to, they must work in partnership with their suppliers.
Calathea provides businesses with visibility and actionable insights as to the sustainability of their supply chain, providing the knowhow and tools to act and make a real difference on the journey towards a truly sustainable supply chain.
Find out more:
People and Communities in the Supply Chain
Anti-Slavery in the Supply Chain
Anti-Bribery in the Supply Chain
Financial Security in the Supply Chain
