Manage supply chains responsibly

- Did you know more than half of consumers are willing to pay at least 5% more for products delivered sustainably, and 76% would wait at least one extra day for climate-friendly delivery of their purchase? Right now, and despite customer demand, many companies still don't incorporate sustainability into their supply chain operations. This means they're missing out on a major source of increased revenue. A study by the World Economic Forum identified revenue increases of up to 20%, cost reductions of up to 16%, and as much as a 30% boost in brand value among companies engaging in sustainable supply chain initiatives. What's interesting is that even for companies manufacturing non-energy-using products, close to 70% of their environmental footprint can be in the supply chain. This means that a high percentage of your company's sustainability issues and money-saving opportunities are found in your supply chain. So how can you more sustainably manage your supply chain? I'll give you a few good places to start. Ask or request your suppliers to perform basic water and energy audits. Improve and measure recycling and waste reclamation efforts. And transition to less toxic materials and inputs. Let's look a little closer at what each might look like. Start with your major suppliers. Build on the performance metrics and engagements you already have with these companies. Integrate sustainability metrics for water, energy, toxics reductions, et cetera. Set expectations and clearly communicate them, whether that's in the form of a code of conduct or a supplier questionnaire. Turn data into decision-making information. Capture sustainability-related data and act on it. Identify and eliminate the worst suppliers, preferably before they ever enter your supply chain. Retain the best suppliers by factoring in their sustainability practices into performance evaluations. Build sustainability improvement requirements and incentives into new and existing supplier contracts. Again, it's important here that you send a clear message that you're committed to reducing your environmental impact throughout your supply chain. Invite them to be a part of the solution. This can send an important signal that you're in this together and want their help in creating better practices all around. For a free roadmap on how to identify and apply other supply chain responsibility practices, see the guide to supply chain sustainability on the UN Global Compact site. You can also access sustainability information exchanges such as the Fair Factories Clearinghouse and Supplier Ethical Data Exchange. These are information sharing communities that focus on certain aspects of sustainability or on specific industries. At the end of the day, transparency is key. By increasing transparency and sharing environmental data throughout the supply chain, businesses can see beyond the tip of the iceberg to the true impact of the products and services that they produce. Only with this transparency can you make educated purchasing decisions, work with suppliers to minimize their impacts, and ultimately drive sustainability.