A Greener Future through Sustainable Supply Chain Management

A Greener Future through Sustainable Supply Chain Management

Supply chain management plays a critical role in a business’ environmental footprint and social impact. Growing acknowledgement of the impacts along the supply chain has caused businesses to take a step back and examine their suppliers, and their sustainable practices. Not only does sustainable supply chain management contribute to the well-being of our planet, but it also unlocks new certifications that, in turn, can bring your business much more success.

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What is Sustainable Supply Chain Management?

Sustainable supply chain management integrates practices that prioritize environmental and social responsibility from beginning to end of the life cycle. From material sourcing, to delivery, to disposal, sustainable management mitigates environmental and social impacts of operations. This includes sourcing environmentally friendly and ethically produced materials, using manufacturing practices that reduce waste and consumption, decreasing Scope 1, 2, and 3 emissions to create a holistic company benefit, and using fair labor conditions from local communities. 

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Benefits of Sustainable Supply Chain Management

Sustainable supply chain management offers a multitude of advantages for companies that choose to adopt them. This proactive approach allows companies to improve their relationships with stakeholders, investors, and customers who prioritize environmental health and safety. Additionally, there are benefits that drive the further success of a business, involving costs and risk management. 

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• Cost Savings: Sustainable practices can significantly reduce costs by improving efficiency, reducing waste, and using less energy. Resource optimization and streamlining operations reduces costs across the supply chain, and largely benefits the impact of the corporation.
• Potential for Certifications: Supply screening is a part of the B Corp Impact Assessment, and is pivotal to achieving the certification and making a larger impact.  Improving social and environmental impact can drive potential for certifications such as B Corp. 
• Brand Reputation: Consumer demand is trending towards B Corps and other sustainable businesses now more than ever, creating a strong brand reputation and customer loyalty. When companies differentiate themselves by prioritizing environmental safety, they establish their reputation as corporate stewards, leading more consumers to invest in their product. 
• Risk Management: Sustainable supply chains prove to be more resilient to disruptions, such as shortages or geopolitics. By increasing operations efficiency, diversified suppliers, and regulatory compliance, companies are able to decrease the opportunity for these risk factors to impact their supply chain–ultimately saving costs and resources. 

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Examples of Successful Sustainable Supply Chains

Though a hefty task, implementing sustainable strategies into your supply chain operations has proven to be successful throughout many companies. Through tactical analysis and climate pledges, many companies have taken on the responsibility of reforming their strategies and supply chains to include resources that enact fair labor conditions and environmentalism. Companies that have adopted such strategies include:

1. Patagonia: A certified B Corp, Patagonia dedicates their production to using recycled materials, fair labor practices, and environmentalism as emphasized in their Climate Goals.
2. IKEA: Through their sustainability strategy, IKEA has made initiatives that focus on using recycled materials, efficient products, and promoting fair labor conditions. 

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Using B Corp to Create a More Sustainable Supply Chain

Integrating B Corp certified companies into your supply chain can significantly drive your company’s sustainability efforts. B Corps are companies that are rigorously examined and assessed to determine if they meet the standards necessary to receive the certification, including tenets of environmental performance and accountability. In addition, B Corps are assessed in order to retain their certification, meaning they are expected to consistently improve in accordance to the standards. 

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Furthermore, partnering with B Corps makes the sustainability reporting process considerably easier. B Corps are held to a standard of reporting that requires them to maintain detailed and verified data of their practices, therefore simplifying data collecting and metrics included in your report, thus increasing accuracy.  Sourcing from B Corps ensures that companies integrated into the supply chain are routinely vetted and expected to retain their responsible practices. This ensures that supply chains are using fair labor conditions and minimizing waste and carbon emissions. This effectively streamlines the sustainability efforts across the supply chain.

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How Ecolytics fits in

Ecolytics is the single management tool for tracking and improving your company’s carbon and social footprint. Our platform allows you to keep a record of your metrics and provides user-friendly surveys, allowing you to set goals and targets for reductions and improvements. Additionally, our platform remains updated with the standards and changes to the B Corp certification process, simplifying the data collection process and giving insights for action. Start assessing your supply chain today, and start moving towards a greener future tomorrow. 

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Request a demo from Ecolytics today!