A recent study conducted by sustainability consultant Supply Pilot has uncovered alarming findings regarding brands’ sustainability strategies. Surprisingly, over three quarters of these strategies were developed without any engagement with suppliers. What’s even more concerning is that among the brands that did engage with suppliers, almost 90% of them only did so with a select few, making it impossible to gain a comprehensive understanding of the overall picture.
Supply Pilot’s CEO, James Butcher, emphasizes the significant impact changes within the supply chain can have on sustainability across sectors such as manufacturing, consumer packaged goods, and retail. He highlights that the majority of carbon emissions and natural resource consumption are tied to the supply chain. Therefore, it seems only logical for brands to start engaging with suppliers to shape their sustainability strategies, identify risks, and maximize their potential impact.
However, the research indicates a different trend—a lack of inclusivity in supplier engagement. Brands need to put more effort into involving as many suppliers as possible to achieve true sustainable change. Butcher stresses that a well-informed sustainability strategy must consider both risks and opportunities. This requires establishing good supplier engagement that encompasses all suppliers, not just a chosen few.
In order to develop a comprehensive strategy, brands must consider their suppliers’ current position in their sustainability journey, including their level of carbon literacy, maturity, and readiness. Unfortunately, many brands tend to rely solely on consultants to create a strategy without proper supplier engagement, a mistake that should be avoided.
Butcher emphasizes the need for a solution that encourages maximum supplier engagement and participation, requiring it to be freely accessible. The key is to simply get started without striving for perfection, as it should not hinder progress towards sustainability goals.
Overall, it is evident that brands must prioritize inclusive and comprehensive supplier engagement to drive true sustainable change and capitalize on the potential benefits. This will enable them to develop well-informed sustainability strategies that consider risks and opportunities throughout the supply chain.
