There is Room to Grow for Suppliers Tackling Sustainability
Let’s start with the positive news. When it comes to implementing more sustainable sourcing practices, a recently published Stanford University study, which focused on large global suppliers, found that more than 50% of the companies reviewed have been implementing these practices. Not surprisingly companies with valuable brands (and therefore a more vocal customer base) were the most likely to be utilizing sustainable practices.
But Cassandra Sweet notes in There’s Room for Progress on Tackling Sustainability Through the Supply Chain, that while this is great news, the study also found that companies lower down the supply chain — where changes to their social and environmental practices would be more beneficial — have been less likely to implement sustainable practices.
To complete their research, 449 publicly traded companies from a variety of sectors were examined in order to evaluate the extent to which their efforts were going to impact the United Nations Sustainable Development Goals. And from this evaluation, it was clear that progress is being made. This portion of the study was focused on industry giants like L’Oreal and Coca-Cola Co. who, among others, have been making big adjustments. These include training their suppliers to help reduce or reuse plastic packaging, address climate change and promote sustainable production among other areas. Coca-Cola Co. has also been providing training to the farmers who supply them in order to help promote sustainable agriculture, gender equity, and fair working conditions.
With this good news, we now need to focus our attention on non-consumer-facing companies who haven’ t been as committed to implementing sustainable practices yet. Unfortunately supply-chain sustainable implementations aren’t as likely to drive change at a global scale unless a lot more companies start to utilize sustainable sourcing practices. Sweet raises the important issue that these practices need to be strong, verifiable, address a broad set of sustainability issues and reach all tiers of global supply chains.
Here’s the thing, so many companies are going half in when it comes to making sustainable changes. An example that Sweet highlights is when a company focuses on ensuring that one product ingredient is sustainably sourced, without paying any attention to other ingredients. Or by making sure that the packaging of a product is made from recycled materials, but at the same time the product contained within that packaging is not sustainably sourced.
Do you feel like your company is falling into this gray zone and could do better? If so, you will benefit from connecting with a sustainability consultant. You might be struggling to understand the complex world of corporate social responsibility, wondering how you can translate your values into actions, and unsure how to prioritize your social and environmental initiatives, but we can help! At Strategic Sustainability Consulting we can work with you to kick off your sustainability journey and help you understand the strengths, challenges, and best-fit sustainability strategy for your company, in your industry, to meet your stakeholder needs, right now.