Moving to sustainable business means reducing the environmental impact of the supply chain, which up until recently, has been ignored. But turning a blind eye to wasteful processes of suppliers is no longer an option as organisations, such as Unilever, are driving change. Donald Moore discusses sustainability across the supply chain and why transparency is key
Environmentally sustainable supply chain management and practices reduce carbon footprints, conserve resources, and demonstrate social responsibility. Greater cost savings and profitability are also achieved through optimising end-to-end operations, and so both business and sustainability benefits are delivered to the company, its stakeholders and society at large.
However, despite these compelling reasons to create a more sustainable supply chain, many organisations are still failing to address the environmental issues related to the manufacture, transportation, and distribution of their products, instead taking a very narrow view of sustainability, such as whether their packaging is recyclable. It’s been all too easy for companies to suggest that suppliers are outside of their control. But the tide is changing.
Organisations are being pressured to act, with more and more consumers, especially younger customers, looking to buy from truly ethical and sustainable brands. And so, companies that rely on green washing are being found out and are losing out, with customers simply walking away from brands that can’t prove their eco credentials.
Of course, success is only possible with transparency and traceability, requiring companies to be open with their supply chain goals, actions, measurements, and progress.
Framework for assessment and evaluation
So how can a company best assess how sustainable it is and go about making improvements? To start with, it needs to have a suitable framework in place that’s applicable across the whole supply chain, including overseas factories and workers. The United Nations’ Sustainable Development Goals (SDGs), also known as the Global Goals, are a robust framework for making improvements. Adopted by the United Nations (UN) in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity, they include 17 goals. Some of these are more suitable to use as guiding principles than others, with One+All focusing on the following because they represent areas the company feels it can make the biggest difference:
- SDG 1– No poverty
- SDG 4 – Quality education
- SDG 8 – Decent work & economic growth
- SDG12 – Responsible consumption and production
- SDG13 – Climate action
Supply chain mapping
To improve environmental performance throughout the supply chain, mapping the journeys of every product and its raw materials is vital for understanding exactly where and how each product and its components are made and their origins.
A good starting point is to become a member of the Ethical Trading Initiative (ETI). By following its base code, companies are required to map all four tiers of the supply chain, obtaining a full understanding of all suppliers.
However, it’s important to recognise the difference between those companies that map the supply chain from the comfort of their office and those that are ‘on the ground’, experiencing first-hand where their products are made and how. It’s the organisations that immerse themselves in their products’ journeys, by visiting the factories and perhaps even having staff based at the factories (which is the case with One+All), that fully understand their supply chain and how to make improvements. For instance, which manufacturers are 100 per cent sure that their products don’t include toxic chemicals that are both harmful to people and the planet? There’s a difference between being told by suppliers and knowing with certainty, with One+All visiting the dye house to ensure all chemicals are safe and are properly disposed of, to avoid illness and environmental damage.
Ultimately, suppliers may well boast of their sustainability credentials but until they are checked out first-hand, it’s impossible to be sure if the reality matches the claim.
Audits and independent verification
Carrying out SMETA audits is a robust way to ensure responsible business practice, encompassing labour, health, safety, the environment, and business ethics. SMETA (Sedex Members Ethical Trade Audit) is the most widely used social audit in the world and is a globally respected methodology. One+All conducts SMETA audits at all its tier one suppliers, ensuring compliance and gaining knowledge of areas for improvement, such as unsustainable business practices.
In addition, independent experts can provide another layer of assessment and verification. Experts like Planet Mark can provide sustainability certification for organisations of any size and sector anywhere in the world, and provide guidance on how to make sustainability improvements throughout the supply chain.
And of course, there is also B Corporation (B Corp) accreditation which comes with its own assessments to understand business impact. B Corp organisations are bound by the highest verified standards of social and environmental performance and demonstrating full supply chain transparency is an important part of this.
Nurturing supply chain relationships
If businesses truly want to ensure an ethical and sustainable supply chain, it can’t be about communicating their sustainability goals to suppliers and then leaving them to figure out how to best achieve them. They must work in close partnership with their suppliers, sharing the responsibility of ensuring processes are as sustainable as possible and that workers are healthy and treated fairly.
So, businesses need to collaborate with their suppliers to measure, track and reduce emissions and waste. In fact, One+All is the first UK-based textiles business to extend carbon reduction certification to its overseas supply chain. Its tier one supplier in Egypt, Totex, is the first of its suppliers to achieve Planet Mark certification and the company will continue to help its other tier one supply chain partners to adopt more sustainable practices.
Climate crisis education
Educating all colleagues to understand the science of the climate crisis is important as everyone needs to understand the why and how behind reducing the company’s carbon impact. After all, if colleagues only pay lip service to sustainability because they don’t understand the point behind it, initiatives may fail. Partnering with organisations such as the Carbon Literacy Trust can help in delivering this all-important social responsibility message. In fact, in partnership with the Carbon Literacy Trust, One+All provides each colleague with two hours of carbon literacy training per week for four weeks, covering topics from greenhouse gases and how they affect the environment through to the impacts of climate change on global and local communities.
Using tech to support transparency
Technology is vital for underpinning sustainability initiatives and increasing supply chain traceability.
One such tool being used by the garment industry for explaining the origin and journey of their products are QR codes. It’s now common to see QR codes for supply chain storytelling, with designers tapping into their power for demystifying the supply chain and providing detailed traceability. By including QR codes on each garment’s care label, it’s given a digital passport that allows consumers to find out where each garment was made and, in some cases, its full lifecycle from field to shop. The codes may even include information such as the item’s environmental impact, as well as tips on how to best wash and then dispose of the item at the end of its life.
Such easily accessible supply chain information not only builds trust between the supplier and customer, but demonstrates a company that cares for its workers, customers, and the planet.
A final thought
Organisations can no longer get away with vague claims about the origin, journeys and manufacturing processes of their products, as eco-conscious consumers are demanding more. And so business leaders must look to improve environmental performance throughout their supply chains. It’s not easy, of course, with buyers quick to force a cost war that is simply incompatible with sustainability. However as more organisations commit to an environmentally-conscious supply chain, a product’s origin and journey will become an increasingly important factor in the buyer’s decision making process.
Donald Moore is Chair of B Corp school wear supplier One+All (formerly Rowlinson Knitwear).
In a 22-year career at the company, he has led the business transformation from an underperforming family-owned business to a successful, wholly employee-owned business, certified as the North of England and Scotland’s highest scoring B Corporation.
