Future of Sourcing - Climate Change https://futureofsourcing.com/tags/climate-change en Procurement’s Carbon Transparency Problem https://futureofsourcing.com/procurements-carbon-transparency-problem <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Procurement%E2%80%99s%20Carbon%20Transparency%20Problem.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/Procurement%E2%80%99s%20Carbon%20Transparency%20Problem.jpg" title="Sustainable procurement is no longer a corporate goal but a global one." class="colorbox" rel="gallery-node-2143-bx007Wr-nIk"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Procurement%E2%80%99s%20Carbon%20Transparency%20Problem.jpg?itok=aqAKxcW6" width="624" height="325" alt="Sustainable procurement is no longer a corporate goal but a global one." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <p><em>Sustainable procurement is no longer a corporate goal but a global one, says SIG CEO and President Dawn Tiura. She outlines the important role that procurement can play in the fight against climate change.</em></p> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/looking-for-a-career-in-sourcing-and-procurement-heres-how-to-get-started">Looking for a Career in Sourcing and Procurement? Here’s How to Get Started</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>The dramatic predictions within the United Nations&nbsp;<a href="https://www.ipcc.ch/sr15/" target="_blank">Intergovernmental Panel on Climate Change Special Climate Report</a>&nbsp;published earlier this year called attention to the consequences of continued carbon emissions, and corporations around the globe have taken notice.</p> <p>From CPG giant P&amp;G to tech powerhouse Hitachi, large enterprises are committing to net-zero emissions across their supply chains by 2050. From the pollution produced by shipping to the waste created by non-recyclable and bio-based packaging, supply chains represent a massive portion of a company&rsquo;s carbon inventory &mdash; and therefore, a huge opportunity to potentially mitigate climate change.</p> <p>Procurement has a decisive role to play in shaping a brand&rsquo;s environmental impact, largely due to the complexity of enterprise-scale supplier networks and historical lack of visibility into value chain emissions. However difficult, the move towards carbon neutrality is imperative.</p> <p>Decisive action on the environment from corporate leaders requires understanding how procurement accounts for their carbon footprints, the challenges of accurate sustainability tracking and why changing how we account for offsets will affect our future.</p> <h2>De-Coding Suppliers&rsquo; Footprint</h2> <p>A study published by the&nbsp;<a href="http://www3.weforum.org/docs/WEF_Net_Zero_Challenge_The_Supply_Chain_Opportunity_2021.pdf" target="_blank">World Economic Forum</a>&nbsp;found that the top eight global supply chains account for more than 50 percent of global greenhouse gas emissions. The carbon footprint of global commerce is so large that achieving net-zero carbon emissions would be a major win in the fight against climate change.</p> <p>Although a corporation&#39;s carbon footprint is often referred to in its entirety, tackling it can be broken down into three areas. Companies accounting for their carbon emissions generally categorize their offsets as either Scope 1 and Scope 2 emissions (those produced directly by companies or indirectly through the purchase of energy) or Scope 3 (emissions that occur outside of direct control).</p> <p>Addressing Scope 1 and 2 emissions is an economic challenge, albeit one that&rsquo;s easier to take on proactively. While Scope 1 and 2 emissions represent two-thirds of a company&rsquo;s emissions accounting, Scope 3 emissions account for nearly 80 percent of their overall climate impact.</p> <h2>The Challenge of Indirect Emissions</h2> <p>Scope 3 emissions are those that occur through a company&#39;s value chain, the downstream and upstream channels that direct the flow of supply. Due to the complexity of monitoring the raw material production, transportation and distribution for Tier N suppliers, Scope 3 emissions are inherently the least accounted for.</p> <p>In fact,&nbsp;<a href="https://resources.ecovadis.com/news-press/ecovadis-2021-sustainable-procurement-barometer" target="_blank">EcoVadis research</a>&nbsp;shows that while corporate sustainability commitments have increased globally, delivering on goals, especially in the supply chain, remains a work in progress. Specifically, EcoVadis found that only 48 percent of supplier respondents believe that buying organizations they work with are truly engaged in sustainability and actively partners with them to foster sustainability practices in their commercial relationships.</p> <p>Instilling accurate carbon accounting within all areas of the procurement and sourcing process can uncover significant opportunities to reduce environmental impact. Many organizations began their carbon neutral journeys by organizing direct initiatives to optimize resource consumption. In its pledge to eliminate carbon offsets,&nbsp;<a href="https://packagingeurope.com/p-and-g-announces-commitment-to-net-zero-emissions-by-2040/" target="_blank">P&amp;G</a>&nbsp;noted that it had developed a technology that would eliminate the need to produce products that use polyolefin plastic, a toxic &quot;forever chemical.&quot; When coupled with value chain carbon reduction strategies, such mass material or product innovations can have a major impact.</p> <p>Taking on value chain sustainability is a more complex task. But it can be achieved through effective optimization of value chain partners and suppliers, and investments in more efficient processes, sustainable systems and equipment. If investing in entirely new processes or systems isn&rsquo;t logistically feasible, a company can replace or change their practices when necessary to eliminate unsustainable materials or processes and bring in environmentally friendly alternatives.</p> <h2>A Clean Value Chain</h2> <div> <p>Given the historical lack of reporting around Scope 3 emissions, it may appear there is still a long way to go in the fight to make our supply chains more sustainable. Yet,&nbsp;<a href="https://www.mckinsey.com/business-functions/operations/our-insights/making-supply-chain-decarbonization-happen" target="_blank">a simple exercise in creating a decarbonization pathway done by McKinsey</a>&nbsp;suggests that 30 percent of total Scope 3 emissions could be decreased through relatively straightforward measures, including optimization and procurement of low-carbon suppliers.</p> <p>Sustainable procurement is no longer a corporate goal, but a global one; and while creating carbon transparency is a challenge, it&rsquo;s a crucial step towards saving the planet and people that business serves.</p> </div> <p><em>This article was republished with permission from <a href="https://www.greenbiz.com/article/procurements-carbon-transparency-problem" target="_blank">Greenbiz</a>.</em></p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/scope-3-emissions" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Scope 3 Emissions</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/climate-change" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Climate Change</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Procurement&amp;rsquo;s Carbon Transparency Problem - Future of Sourcing" addthis:url="https://futureofsourcing.com/procurements-carbon-transparency-problem"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 01 Mar 2022 17:00:00 +0000 Dawn Tiura 2143 at https://futureofsourcing.com https://futureofsourcing.com/procurements-carbon-transparency-problem#comments Procurement Is the Ultimate Guardian of Responsible Supply Chains https://futureofsourcing.com/procurement-is-the-ultimate-guardian-of-responsible-supply-chains <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Sustainable%20Procurement%20Pledge.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Sustainable%20Procurement%20Pledge.png" title="Procurement Is the Ultimate Guardian of Responsible Supply Chains" class="colorbox" rel="gallery-node-1680-bx007Wr-nIk"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Sustainable%20Procurement%20Pledge.png?itok=c5rdixPz" width="624" height="325" alt="Procurement Is the Ultimate Guardian of Responsible Supply Chains" title="" /></a></div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/can-b2b-transactions-help-tackle-todays-most-pressing-challenges">Can B2B Transactions Help Tackle Today’s Most Pressing Challenges?</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Imagine a world where all people thrive within the environmental boundaries of our planet. Picture a planet where the immediate threat of climate disaster has been avoided and where global businesses have evolved their business models to support a responsible and low-carbon economy.</p> <p>Whilst is seems a bit far-fetched looking at today&rsquo;s realities, we fundamentally believe this world vision is possible and millions of procurement professionals worldwide are mission-critical in making this come true.</p> <p>The Sustainable Procurement Pledge offers a community and a starting point for anybody in procurement to declare their personal commitment to making a difference and changing their sphere of influence right now.</p> <h1>Changing the World Bottom-up</h1> <p>The idea was ignited by the <a href="https://globalclimatestrike.net/" target="_blank">Global Climate Strike</a> on September 20, 2019. What a powerful message! Children and adults from all walks of life made a clear statement, and we were all reminded about our prime responsibility: Leave our home, our ONE planet, in the same condition as it had been entrusted to us. &nbsp;</p> <p>At the same time, the <a href="https://fridaysforfuture.org/" target="_blank">Fridays for Future</a> initiative also provided an obvious clue to the fundamental question on how we can accelerate change to have an immediate impact &mdash; start with ourselves!</p> <p>There are many very good and profound sustainability initiatives, commitments and legislations, all involving companies, governments and institutions. But rarely have we seen professional initiatives that are personally addressed to individuals. Yet, as procurement professionals, we are holding an incredible decision power that many of our colleagues may not yet realize. Using our discretionary decision power for good drives many small changes that ultimately lead to a big change.</p> <h1>The Sustainable Procurement Pledge</h1> <p>Recognizing the power of the crowd, the idea to create a <a href="https://www.linkedin.com/company/sustainable-procurement-pledge/" target="_blank">Sustainable Procurement Pledge</a> (#SPP) was born. We wanted it to be a very inclusive pledge in which anybody involved in procurement activities around the globe could find themselves and engage &mdash; from intern to CPO, from student to professor, from buyer to supplier.</p> <h1>Leapfrogging Current Efforts</h1> <p>We wanted the pledge to be complimentary to existing sustainability initiatives. Responsible supply chains are in a space where we all need to collaborate. Combining the top-down initiatives with our bottom-up approach provides us all with the best chance to have a real impact.</p> <p>The Purpose of #SPP is to support all procurement individuals across the world to use their decision power for good, ensuring that the UN Sustainable Development Goals of ending poverty, protecting the planet and ensuring that all people enjoy peace and prosperity will be met by 2030.</p> <p>If each of us takes responsibility for our own procurement conduct, we can tackle the small things as well as change our way of thinking, reflecting and acting. If we all incorporate sustainability aspects into our decision matrix, then the sum of these small changes will make a huge impact on our world. Every procurement decision is a ballot! So, let us make it visible to the world and become ambassadors for sustainable procurement.</p> <h1>Increasing Awareness for Sustainability and its Importance in Procurement</h1> <p>What we would like to achieve with the Sustainable Procurement Pledge is to increase the awareness for sustainability and its importance in procurement.</p> <p><a href="https://www.docdroid.net/xlEM0vw/sustainable-procurement-pledge.pdf" target="_blank">The pledge</a> contains five statements derived from the 10 principles of the UN Global Compact and the Sustainable Development Goals of the United Nations. Subscribing ambassadors commit themselves to stand up for people and the planet, to work together to change the world, to start with themselves, to share knowledge and listen to others. Collaborating together, we can leave the right legacy of protecting a sustainable planet for us and future generations.</p> <p>With the Sustainable Procurement Pledge, we wanted to lay the foundation and invite others to further develop, commit, act and share the pledge in their personal networks. Since its go-live on October 18, more than 700 ambassadors have joined the <a href="https://www.linkedin.com/groups/8845732/" target="_blank">Sustainable Procurement Ambassador LinkedIn group</a>, an open space to collect and share ideas of good practices and life hacks for more responsible procurement aspects. Here, we initiate and foster a dialogue about responsible procurement and want to involve as many people in the procurement sector as possible to join forces and make a real impact on the ground.</p> <h1>Concrete Actions We Can All Take</h1> <p>We trust that everyone knows best which small and big things he or she can change to make an impact on responsible procurement.</p> <p>Obviously, there is no one-size-fits-all solution to solve the world&rsquo;s most pressing topic. However, we strongly believe in our #SPP ambassadors and the power and creativity of the crowd to develop and share ideas and good practices. These will ensure everybody can find inspiration for his or her individual next step.</p> <p>In every decision process, let&rsquo;s ask ourselves which sustainability aspects we can include, what kind of sustainability impact our decision will have, and how our choices can bring the optimum for a more sustainable procurement activity.</p> <p>We believe there are always options! Let&rsquo;s challenge ourselves and others to adopt more sustainable alternatives that will pay off in the long term.</p> <h1>Please Join the Sustainable Procurement Pledge</h1> <p>We warmly invite you <a href="https://www.linkedin.com/groups/8845732/" target="_blank">to join the Sustainable Procurement Pledge (#SPP)</a> and make your commitment visible to the world. Join us and become an active ambassador who encourages his or her respective network to also embark on this mission.</p> <p>None of us knows what the future will bring. We are, however, committed to doing our personal best to ensure that a positive legacy of procurement is preserved. There is not a lot of time left and we do not have a second planet!</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/sustainable-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainable Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/strategic-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Strategic Sourcing</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/climate-change" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Climate Change</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/impact-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Impact Sourcing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Procurement Is the Ultimate Guardian of Responsible Supply Chains - Future of Sourcing" addthis:url="https://futureofsourcing.com/procurement-is-the-ultimate-guardian-of-responsible-supply-chains"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Sun, 26 Jan 2020 17:00:00 +0000 Thomas Udesen 1680 at https://futureofsourcing.com https://futureofsourcing.com/procurement-is-the-ultimate-guardian-of-responsible-supply-chains#comments The Rise of the Ethical Consumer and Why Businesses Need to Follow https://futureofsourcing.com/the-rise-of-the-ethical-consumer-and-why-businesses-need-to-follow <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Rise_Ethical_Consumer.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/Rise_Ethical_Consumer.jpg" title="The Rise of the Ethical Consumer and Why Businesses Need to Follow" class="colorbox" rel="gallery-node-1544-bx007Wr-nIk"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Rise_Ethical_Consumer.jpg?itok=NU9eBWHn" width="624" height="325" alt="" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <div>The human population is rapidly increasing. According to the UN, it may reach 9.7 billion by 2050, which is expected to increase food demand between 59 to 98%. As a result, agricultural markets will be impacted in ways we haven&rsquo;t seen before. Farmers will have to increase agricultural land or enhance productivity, which still may not be quick enough to meet the forecasted demand for food. Climate change-driven water shortages, increasing global temperatures and extreme weather changes will also have a major effect on food production. To address this, an increasingly circular approach to food production is required &ndash; from sourcing the right ingredients to packaging and waste management.</div> <div>&nbsp;</div> <div>At the same time, conscious, <a href="https://futureofsourcing.com/make-business-better-with-ethical-sourcing" target="_blank">ethical consumers</a> are shifting from their established approach to shopping and want to know more about how and where their food is being produced. Ethical sensitivity is being incorporated in the way food is produced and consumed and is becoming a major factor in determining where consumers spend their money. As consumers are demanding to know more about their food, food <a href="https://futureofsourcing.com/stop-drop-and-get-sustainable-four-ways-to-get-sustainable-procurement-started-now" target="_blank">supply chains need to become fully transparent</a> about their processes and suppliers and businesses need to provide accurate product information to build long-term customer relationships.</div> <div>&nbsp;</div> <div> <h2><em>A Shift Towards Plant-Based Living</em></h2> </div> <div>&nbsp;</div> <div>Recent research by <a href="https://yougov.co.uk/topics/resources/articles-reports/2019/03/18/future-food-flexitarian" target="_blank">YouGov</a> suggests that consumers are reducing their meat and dairy consumption, with plant-based diets becoming more mainstream. Animal welfare is the biggest concern for ethically conscious consumers, followed by health and environmental awareness -- consumers increasingly want to buy products from brands that are socially responsible, sustainable and ethical and they are likely to stop buying products from brands whose practices and views conflict with their own.&nbsp;</div> <div>&nbsp;</div> <div>According to <a href="https://www.mintel.com/press-centre/food-and-drink/just-37-of-brits-agree-its-easy-to-identify-which-allergens-a-product-is-free-from-by-its-label-2" target="_blank">Mintel</a>, nearly 50% of consumers state an avoidance of certain foods in their households and 56% are proactively reducing meat, seafood, eggs and diary, with key motivators being improved health, cost savings and the environment. While consumers are not sticking to a strictly vegan or vegetarian diet, their buying behaviours are changing due to the new levels of awareness and emerging new food options. Flexitarians are consciously reducing meat consumption and increasing their plant-based food intake to help the environment and maintain a healthier lifestyle. The flexitarians are here to stay, and food producers and retailers need to adapt to the new attitudes of the ethically conscious consumers.&nbsp;</div> <div>&nbsp;</div> <div> <h2><em>Beyond a Millennial Trend</em></h2> </div> <div>&nbsp;</div> <div>The 2019 <a href="https://www2.deloitte.com/global/en/pages/about-deloitte/articles/millennialsurvey.html" target="_blank">Delloite Global Millennial Survey</a> has found that among 20 challenges facing society that most concern respondents on a personal level, climate change and protecting the environment topped the list. Millennials also gravitate towards environmentally conscious businesses who are not only doing what&rsquo;s profitable for business but focus on the right thing to do. For businesses this means that being environmentally and socially conscious will not only increase their popularity, but more importantly sustain the future for people and the planet. Just look around you and see what successful businesses are championing &ndash; Tesco is on a mission to reduce food waste, Coop is fighting water poverty, Amazon wants to be 50% carbon neutral in the coming years &ndash; just to name a few.</div> <div>&nbsp;</div> <div>The shift towards flexitarian and plant-based diets is mostly driven by younger generations but is quickly gaining traction across all age groups. In contrast to the cattle industry, which is responsible for 51% of the total greenhouse gas emissions, 91% of the Amazon deforestation and water pollution, a plant-based diet requires 16 times less land usage, 13 times less water and produces 50% less CO2 emissions. <a href="https://www.forbes.com/sites/michaelpellmanrowland/2018/06/12/save-the-planet/#69fe9bae3c81" target="_blank">Research suggests</a> that avoiding or at least reducing meat and dairy products is the most effective way to improve our environmental impact on the planet and care for our own health.&nbsp;</div> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/ethical-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Ethical Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/sustainability" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainability</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/climate-change" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Climate Change</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/manufacturing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Manufacturing</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Rise of the Ethical Consumer and Why Businesses Need to Follow - Future of Sourcing" addthis:url="https://futureofsourcing.com/the-rise-of-the-ethical-consumer-and-why-businesses-need-to-follow"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 12 Aug 2019 16:44:01 +0000 Franco Vessio 1544 at https://futureofsourcing.com https://futureofsourcing.com/the-rise-of-the-ethical-consumer-and-why-businesses-need-to-follow#comments Supply Chain Sustainability: What We Know and Don’t Know https://futureofsourcing.com/supply-chain-sustainability-what-we-know-and-dont-know <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Sustainble%20Sourcing%20knowledge%20.jpg"><a href="https://futureofsourcing.com/sites/default/files/articles/Sustainble%20Sourcing%20knowledge%20.jpg" title="Supply Chain Sustainability" class="colorbox" rel="gallery-node-1084-bx007Wr-nIk"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Sustainble%20Sourcing%20knowledge%20.jpg?itok=DCTV2_vr" width="624" height="325" alt="Supply Chain Sustainability" title="" /></a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Supply chain sustainability is a nice idea, but there are a lot of unanswered questions when it comes to the finer details. So, while genuine progress has been made, there are also a lot of businesses whose commitment to a sustainable supply chain is questionable.&nbsp;</p> <p>When McDonald&rsquo;s says it wants to <a href="http://fortune.com/2017/02/27/mcdonalds-sustainable-beef/" target="_blank">start serving &ldquo;sustainable beef,&rdquo;</a> this sounds great. The supply chain for meat is <a href="https://www.theguardian.com/environment/2017/dec/11/meat-tax-inevitable-to-beat-climate-and-health-crises-says-report" target="_blank">one of the biggest causes of climate change</a>, so anything that one of the world&rsquo;s biggest purchasers of beef can do to make their supply chain more sustainable should be welcomed and applauded.&nbsp;</p> <p>The issue comes with the self-regulation of McDonald&rsquo;s &ldquo;sustainable beef,&rdquo; as well as the fact that &ldquo;sustainable beef&rdquo; is a term that the company has come up with itself. While it is encouraging to see McDonald&rsquo;s <a href="https://www.theguardian.com/sustainable-business/2017/sep/29/companies-zero-deforestation-pledges-agriculture-palm-oil-environment" target="_blank">promise to eliminate deforestation</a> from its supply chain, exactly how else McDonald&rsquo;s beef will be sustainable remains to be seen.&nbsp;</p> <p>McDonald&rsquo;s sets benchmarks for many industries, so there is a lot that can be learned from the company&rsquo;s successes &mdash; as well as its failures &mdash; with regards to sustainability. In lieu of tough regulation from governments, we need companies to set targets for themselves by which the public and the media can measure them. Striving for &quot;no deforestation in the McDonald&rsquo;s supply chain by 2020&quot; is a measurable target, but aiming to have &quot;more sustainable beef&quot; is neither specific enough nor truly measurable.&nbsp;</p> <p><strong>Waste, Wastewater and Pollution&nbsp;</strong></p> <p>The economics of scale is the principle behind almost every business on the planet, yet its major flaw is waste. When buying in such quantities, the risk of leftover waste increases exponentially. Recycling is an absolute must because the aim shouldn&rsquo;t be waste reduction; the aim should be zero waste.&nbsp;</p> <p>Wastewater can be recycled, waste can be recycled and emissions can be reduced to zero...all it takes is imagination and the will to do so. Elon Musk has proven that this is the case. The adventurous entrepreneur has built <a href="https://news.sky.com/story/elon-musk-wins-50m-bet-with-giant-battery-for-south-australia-11141165" target="_blank">a solar-powered battery able to give electricity to an entire town in Australia</a> and is also developing <a href="http://www.bbc.com/news/business-41263152" target="_blank">electric-powered delivery vehicles</a>. These two inventions could help supply chains the world over to develop zero-emission factories with zero-emission transport. Those two inventions alone could completely cut emissions from a huge chunk of the global supply chain. What&rsquo;s lacking is the investment and the belief in Musk&rsquo;s ideas.&nbsp;</p> <p>This is hardly surprising. Eco-friendly entrepreneurs like Musk have <a href="https://www.youtube.com/watch?v=h97fXhDN5qE" target="_blank">their own version of economics</a>, where the aim isn&rsquo;t to make as much money as possible but to use his company&rsquo;s profits to make as much positive impact on the world as possible. It might sound hokey, yet it makes sense that the kind of people ambitious enough to make billions of dollars would also be ambitious enough to commit to such lofty aims.&nbsp;</p> <p>It&rsquo;s not just Musk. Entrepreneurs like <a href="https://www.gatesfoundation.org" target="_blank">Bill Gates</a> and <a href="http://theconversation.com/forget-mark-zuckerbergs-charity-we-need-corporate-tax-reform-88804" target="_blank">Mark Zuckerberg</a> have amassed fortunes while simultaneously attempting to change the world. Of course, this change is not always welcome. As <a href="https://www.theguardian.com/technology/2016/may/12/facebook-free-basics-india-zuckerberg" target="_blank">Zuckerberg learned in India</a>, there is a fine line between philanthropy and neo-imperialism.&nbsp;</p> <p><strong>Things Smaller Businesses Can Do&nbsp;</strong></p> <p>Away from the machinations of billionaires, what can small to medium businesses do to create more sustainable supply chains? To begin with, it depends on your industry. Reducing carbon emissions might be the aim and there are many ways in which the <a href="https://seerackinginspections.co.uk/the-future-of-pallet-racking-and-warehouses/?utm_source=outsourcemag.com&amp;utm_medium=article&amp;utm_campaign=enoutreach" target="_blank">future of warehousing</a> or the future of shipping could be more sustainable.&nbsp;</p> <p>However, to run a small business with zero emissions, you need to build the business from scratch, with the idea of zero emissions at the center of what you do. Of course, at some point, you&rsquo;re going to run into the issue of transport. Without a zero-emission transport system such as the one Musk is developing, you&rsquo;ll have to resort to whatever you can find.&nbsp;</p> <p>There are a lot of things that all businesses can do to make supply chains more sustainable...there are a lot of things that governments can do to make supply chains more sustainable...and there are a lot of things that customers can do to influence both groups. What&rsquo;s more, in some ways, decision-makers at small businesses are also waiting on big businesspeople like Musk to make a sustainable supply chain possible for everyone. In short, the job of supply chain sustainability is everyone&rsquo;s, meaning everyone has a role to play.&nbsp;</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/sustainable-sourcing" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainable Sourcing</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/sustainability" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Sustainability</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/technology" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Technology</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/climate-change" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Climate Change</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supply-chain-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supply Chain Management</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/global-warming" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global Warming</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/emissions" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Emissions</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/elon-musk" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Elon Musk</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Supply Chain Sustainability: What We Know and Don&amp;rsquo;t Know - Future of Sourcing" addthis:url="https://futureofsourcing.com/supply-chain-sustainability-what-we-know-and-dont-know"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Fri, 16 Feb 2018 17:36:49 +0000 Justin O’Sullivan 1084 at https://futureofsourcing.com