Page 44 - The European Business Review

Supply Chain

Is your supply chain sustainable?

PROBABLY NOT

BY CORY SEARCY

A growing number of companies are PRVW VLJQLÀFDQW LPSDFWV ,Q 380$ IRXQG
working to develop sustainable supply that 94% of its total environmental impact was
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chains. A key challenge is to align their generated within its supply chain. This past
supply chain performance with the year alone, Walmart, Mars, and Hewlett Packard
economic, environmental, and social thresh- Enterprise (HPE) were just a few of the compa-
olds that dictate whether it is sustainable nies to announce dramatic expansions of their
or not. This article discusses what supply sustainable supply chain initiatives.
chain sustainability really means, why it is The growing investments in sustainable
GLIÀFXOW WR DFKLHYH DQG ZKDW FRPSDQLHV supply chains are encouraging. However,
can do to advance their progress. extending sustainability into supply chains
comes with many challenges. Companies must
early every day, more companies publicly set priorities, accommodate differing local
share their sustainability commitments conditions, and align the efforts of a multi-
Nand progress. As just one example, WXGH RI SDUWQHUV %XW ÀUVW WKH\ PXVW ÀJXUH RXW
Companies must nearly 10,000 companies around the world are what sustainability means for their supply chain.
figure out what now signatories to the United Nations Global Only then can they determine if they are doing
sustainability means Compact. These companies have explicitly enough of what truly matters.
recognised their responsibilities in the areas
for their supply chain.
of human rights, labour, environment, and What is a sustainable supply chain?
Only then can they
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anti-corruption. 7KHUH DUH PDQ\ GHÀQLWLRQV RI VXSSO\ FKDLQV
determine if they are
Many companies now acknowledge that their but they typically emphasise the need to coordi-
doing enough of what responsibilities extend into their supply chains. QDWH ÁRZV RI PDWHULDO VHUYLFHV DQG LQIRUPDWLRQ
truly matters. In fact, supply chains often contain a company’s between organisations in order to deliver value

44 The European Business Review January - February 2018