How to Build and Manage a Green Supply Chain
Climate change is rapidly impacting the environmental landscape and damaging communities globally. Businesses need to prepare for vulnerabilities along their supply chain to avoid major losses and disruption. Sustainability Risk Management (SRM) has grown as more companies take action against climate concerns and resource scarcity and we now know that green supply chain management is crucial for the environment and the longevity of businesses.
Corporate Social Responsibility (CSR) is the idea that businesses are accountable for their impact on the environment, their stakeholders, and the public. Corporations have raised their expectations for suppliers to include sustainability standards under their CSR. Supply chain emissions have become a pressing concern for businesses, on average they are 11.4x higher than operational emissions. Businesses have begun to recognize how vital it is for suppliers in their value chain to adhere to environmental standards and implement green supply chain practices.
What is a Green Supply Chain?
A green supply chain is created when a company uses environmentally friendly practices throughout the life cycle of a product to reduce the environmental impact. It requires that a business prioritizes sustainability in designing processes and operations throughout the supply chain.
Implementing environmental standards and code of conduct: Suppliers should have access to a set of standardized requirements and expectations that align with the business's mission and long-term sustainability objectives. These rules must clearly define the rules for suppliers to engage in internal discussions to make changes. Leaders within a green supply chain can use the established guidelines to set sustainability targets for themselves.
Focusing on emission hotspots: A product life cycle assessment (LCA) requires gathering data from suppliers to determine the environmental impact. The LCA can provide information on where emission hotspots are located along the value chain. After identifying suppliers with high environmental concerns it is crucial to develop a sustainability plan. The initiatives can vary depending on the supplier. Active communication with suppliers and sharing relevant and accurate data is important to determine if suppliers are making the necessary changes needed for a green supply chain.
Educating and training suppliers: Many suppliers, especially Small to Medium-sized Businesses (SMBs), lack the resources and knowledge to implement sustainability initiatives. A green supply chain values training suppliers to ensure the company’s goals are met and understood. Suppliers should have resources and assistance available to them if they need help complying with environmental standards. Help can be offered through virtual webinars, workshops, and programs on sustainability initiative implementation.
Benefits of Green Supply Chain Management
Green Supply Chain Management is essential for business growth. Through sustainable practices, risks that are detrimental to company performance can be reduced or avoided. Programs for waste minimization, renewable energy, and reducing air and water pollution implemented in green supply chains ensure stability. Your business can be steps ahead of other competitors by engaging in environmentally friendly practices while cutting costs. Environmental regulations can hinder businesses without a green supply chain if they cannot comply with the latest legislation in various markets. Increased consumer loyalty and improved brand reputation can be another result of disclosing your internal sustainability changes and successes.
Our sustainability specialists at RyeStrategy help SMBs reduce their carbon footprint through decarbonization strategies. We assist businesses that want to stay up-to-date with environmental standards and procedures at every step of their journey. Our affordable carbon accounting software has helped suppliers build a competitive advantage that sets them apart during the supplier selection process. We offer services to assist your business at any stage in the climate journey, aligning to help you achieve your goals and fulfill climate data disclosure requirements. Schedule a meeting to learn more at https://www.ryestrategy.com/go-carbon-neutral.
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About RyeStrategy
Based in Seattle, RyeStrategy is a CDP-accredited, mission-oriented company specialized in carbon accounting, mitigation coaching, and climate disclosure solutions for organizations at any point in their sustainability journey. Learn how RyeStrategy helped Salesforce, Ideascale, and Wazoku achieve their sustainability goals.
From exhaustive carbon footprinting and mitigation coaching, to setting science-based targets and reporting climate data to CDP, SBTi or custom reporting platforms, RyeStrategy acts as a hands-on extension of the team, custom-tailoring services to fulfill climate disclosure requirements easily and accurately.
Meet with a sustainability specialist to learn more about RyeStrategy solutions.
