We set aspirational goals to achieve 100% renewable energy, zero waste and a more sustainable supply chain for people and the planet. This is an important step in improving sustainability and driving behavioral changes throughout your supply chain. According to a McKinsey report about sustainability, supply chain operations have a direct impact on the environment as they try to compete with a growing consumer base. Working with your industry peers is a great way to share knowledge about the sustainability performance of your suppliers. Tier 1 and Tier 2 suppliers are required to provide information about their sustainability programs and demonstrate continuous improvement. 5 Strategies for a More Sustainable Supply Chain 1. As a founding member of the Apparel Impact Institute (Aii), Target Corporation stands out as one of the leading brands committed to sustainability in the apparel industry. But all MNCs have more work to do to develop sustainable supply networks. 0000025955 00000 n The Electronic Industry Citizenship Coalition has developed the validated audit process that covers both social and environmental performance and includes an auditor certification program to drive for further consistency in audits. The baseline assessments form the starting point for future programs to improve supply chain sustainability and help assess where the greatest need for improvement exists. 0000010077 00000 n Common among them is the use of technology such as AI and blockchain-based technologies which may help supply chains become more resilient. 0000007363 00000 n Increasingly, organizations incorporate all areas included in their code of conduct with special focus and weight in the self-assessments related to areas that are important to their business. •    Encourage innovation. Creating a sustainable supply chain can actually decrease supply chain costs, as a reduction in truck and air freight in favor of intermodal rail and ocean will result in substantial cost savings for your firm. Building a More Sustainable Supply Chain 14 JULY 2020 The article below is from our BRIEFINGS newsletter of 14 July 2020 Consumer packaged food companies are changing the way they source raw ingredients to help reduce their environmental and social impact. Reduce Cost. 0000006420 00000 n For example, the Sustainable Apparel Coalition developed the Higg Index, a performance assessment tool for the apparel and footwear industries. Focusing on sustainability within your supply chain is a great way to communicate corporate values and culture to your suppliers and customers. Communicating back to suppliers in a constructive way is critical for future engagement and provides encouragement for improvement. The three MNCs in our study have taken a number of steps to promote suppliers’ social and environmental responsibility: 1. push sustainability into the supply chain, Global Reporting Initiative (GRI) G4 Guidelines, 2013 Global Corporate Sustainability Report, Global Environmental Management Initiative, Electronics Industry Citizenship Coalition Self-Assessment Questionnaire, Pharmaceutical Supply Chain Initiative Self-Assessment Questionnaire, Electric Utility Industry Sustainable Supply Chain Alliance, Electronic Industry Citizenship Coalition, Zero Discharge of Hazardous Chemicals Programme, American Apparel and Footwear Association. The information is used to compile the environmental metric in the annual scorecards for top tier suppliers and to identify opportunities to partner with suppliers to advance business practices in target areas. For example, Pacific Gas and Electric (PG&E) uses response from the Electric Utility Industry Sustainable Supply Chain Alliance survey to gauge performance of its top tier suppliers on important aspects of environmental performance, including greenhouse gas emissions, energy and water usage, and waste generation. Others suggest that greater collaboration among value chain members are required to create a more resilient supply chain. %PDF-1.7 %���� Working in a pre-competitive environment, peer companies that share similar supply chains can set common standards and best practices for sustainability performance and allow suppliers to be evaluated on the same metrics. 0000002572 00000 n Challenges in Adopting Sustainable Practices. For example, HP has established supplier- and peer educator-run programs that have provided training to a large number of workers. 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