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Supply Chain Sustainability (II) – Improve Your Supply Chain Sustainability

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UN’s Intergovernmental Panel on Climate Change IPCC’s latest report, indicates that RSLR (Relative sea-level rise) and the increased frequency and severity of storms are already affecting port activity, infrastructure, and supply chains, sometimes disrupting trade and transport, but these hazards are not systematically incorporated into adaptation planning. Both physical and transition risks are increasingly challenging for the stability of supply chains, place extra pressure on fuel stability and essential goods worldwide.

Supply Chains activities could suffer from constant disruption if without proper adaptation improvements. Concerns for sustainable supply chain growth relies on strategic upgrades instead of mere decrease of reliance on complex supply chain structures.

When facing stricter sustainable due diligence mandates, such as the EU corporate sustainable due diligence directive, suppliers from upstream are tasked to prove their sustainable conduct instead of mere alignment on code of conduct policies. Key indicators and assessments can be set to ensure companies are fitting for more transparency requirements from clients and help easier transition to sustainable procurement compliance demands. Identify ESG materiality within the supply chains and integrate ESG risk management process into supply chain management requires long term efforts that could be assisted with technological advancement and lessons from existing case studies.

Technological advancement is racing to be the key among supply chain sustainability solutions. For example, The Science Based Target Initiative, SBTi suggests “Fourth Wave” technologies such as data analytics, smart sensors, and blockchain will help companies manage their scope 3 impacts by offering powerful insight into complex, global value chains and will help reduce emissions in new ways. Software as a service (SaaS) platform for monitoring and quantifying GHG emissions with collaboration capacities to involve and engage supply chains’ activities is emerging among climate techs as national ambitious and carbon reduction initiatives develops, such as China’s “30·60” goals*.

*China is committed to hit peak emissions by 2030 and carbon neutrality by 2060.

GC Insights’s Top Ten Recommendations

Build collaborative relationships with suppliers to work across the full supply chain and consider linkages and possible ripple effects incentivise improvements among supply chain sustainability. In part II of this series, we explore the available options for supply chain sustainability improvement.

Top Ten Recommendations from GC Insights on How you can improve Supply Chain Sustainability?

  • Improve Supply Chain Data Transparency with ESG considerations

  • Engage in Deeper, Long-Term Collaboration with Suppliers

  • Deploy ESG Due Diligence

  • Steer ESG Risk & Opportunity Management

  • Integrate Sustainable Sourcing and Planning into Procurement Strategy

  • Establish Sustainability Expectations for the Supply Chain

  • Deep Dive into Scope 3 Exposures

  • Align Science-Based Targets

  • Employ lower-carbon logistics solutions

  • Decarbonise Packaging Solutions

By real world case studies explained along with these recommendations, we are able to see the practical applications and feasible solutions from different industries to tackle the same sustainable pursuit. As improvement on supply chain sustainability relies on cross-sectoral innovations and at GC Insights, we keen on exploring the decarbonisation potential within and beyond the supply chains, we help businesses to fulfil their sustainable commitments and engage with their suppliers to manage scope 3 and product lifecycle greenhouse gas emissions and ESG exposures. Through time-tested case studies, we help businesses source green and manage their supply chain exposures for the long games.

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