Sustainability is increasingly critical for businesses worldwide. Supply chains, encompassing raw material sourcing, transportation, and manufacturing, significantly impact a company’s environmental footprint. Addressing these areas allows businesses to reduce their carbon footprint and build resilient operations while meeting rising regulatory and consumer demands for sustainability (Silva & Ruel, 2022).
Ethical Sourcing of Raw Materials
Ethical sourcing is foundational to a sustainable supply chain. It ensures that raw materials are procured in ways that minimize environmental degradation and promote social welfare. One example would be Timberland, who in 2019 ensured nearly all products were made with an element of recycled, organic, or renewable (ROR) materials (Timberland U.K., 2023). Ethical sourcing practices enhance supply chain resilience and help businesses maintain continuity even during global disruptions like the COVID-19 pandemic (Silva & Ruel, 2022). For example, Nestlé’s cocoa sourcing program addresses sustainability issues such as deforestation and child labor while promoting ethical farming practices(Cocoa et al.).
Utilizing Renewable and Recycled Materials
Switching to renewable and recycled materials significantly reduces environmental harm. Incorporating renewable materials and fostering collaboration with suppliers to develop circular economies can reduce resource depletion and promote long-term sustainability (Silva & Ruel, 2022). Businesses like Adidas, which uses ocean-recovered plastic to create products, exemplify how innovation can help minimize environmental impact while maintaining profitability (Adidas Canada, 2023).
Reducing Transportation Emissions
Walmart’s innovative efforts to reduce transportation emissions are exemplary. They have committed to achieving zero emissions by 2040, integrating solutions like electric delivery vans, hydrogen-powered trucks, and renewable natural gas (RNG). Their recent pilot with electric refrigerated trailers, which ran on battery power 83% of the time, demonstrates how such technologies can significantly reduce emissions while maintaining operational efficiency (Walmart, 2022).
Fostering Supplier Transparency and Collaboration
Transparency and collaboration with suppliers are critical elements of sustainable supply chains. Research emphasizes the importance of social sustainability in boosting supply chain resilience during disruptions (Silva & Ruel, 2022). For example, inclusive purchasing programs have been found to amplify capabilities such as adaptability and transparency, allowing companies to maintain operations during crises while ensuring that sustainability goals are met.
Hence, to build a more sustainable supply chain, businesses must focus on ethical sourcing, using renewable and recycled materials, reducing transportation emissions, and fostering transparent relationships with suppliers. These practices minimize environmental impact and enhance supply chain resilience, helping businesses thrive in an increasingly sustainability-conscious world.
References
1. Silva, M. E., & Ruel, S. (2022). Inclusive purchasing and supply chain resilience capabilities: Lessons for social sustainability. Journal of Purchasing and Supply Management, 28(5), 100767. https://doi.org/10.1016/j.pursup.2022.100767
2. Timberland U.K. (2023, September). 8 crucial ways Timberland clothing is sustainable. https://www.timberland.co.uk/en-gb/blog/inspiration/eight-crucial-ways-timberland-clothing-is-sustainable
3. Cocoa sourcing. (n.d.). Nestlé Global. https://www.nestle.com/sustainability/sustainable-sourcing/cocoa
4. Adidas Canada. (2023). The three loop strategy: adidas’ plan to help end plastic waste.https://www.adidas.ca/en/blog/643269-the-three-loop-strategy-adidas-plan-to-help-end-plastic-waste
5. Walmart. (2022, June 8). Zero sum: How Walmart transportation is working to reduce emissions now and in the future https://corporate.walmart.com/news/2022/06/08/zero-sum-how-walmart-transportation-is-working-to-reduce-emissions-now-and-in-the-future
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