Benefits of Sustainable Suppliers

Sustainability; No Longer Simply a Buzz Word

As sustainability becomes a more prominent topic in all spaces globally, the reality of required climate disclosures is setting in. Since the creation of the Task Force on Climate-Related Financial Disclosures (TCFD), many governing body's regulations have shifted to align closely with its framework. With this list including the Securities and Exchange Commission (SEC) in the United States, the Corporate Sustainability Reporting Directive (CSRD), and other initiatives, the priority of sustainability has shifted to the top of everyone's to-do lists.

Organizations are focused now more than ever on these practices to remain compliant with their applicable regulations. For example, the SEC has begun monitoring for possible discrepancies between companies' public sustainability disclosures and their SEC filings. As these requirements continue to evolve, there will be challenges in adjusting operations to remain compliant.

Many companies are setting carbon-neutral and carbon-negative goals in the next 5-10 years. Since supply chains contribute to a company's emissions, they are the easiest target to start with when planning to achieve sustainability goals. (McKinsey & Company,2023)

Net Zero Supply Chains and Circular Economies

In a 2023 PwC study, 24% of respondents said increasing sustainability and corporate social responsibility was among their top 3 priorities. This was a 19% increase from the previous year. This shift is most likely due to growing awareness as well as regulations we've already discussed and as a result, the idea of net-zero supply chains has emerged. As these priorities continue to become more prevalent, we can anticipate that the demand for sustainability-conscious suppliers will as well since the supply chain is the natural place to start.

Moving hand in hand with net zero supply chains is the concept of a circular economy, which is the concept of closing the loop in the product lifecycle. Implementing programs that extend product life and enable the return of obsolete products for repurposing are examples of this concept in action. According to Earnst and Young, the global economy is currently only 8.6% circular and has the potential to cut emissions by another 39% by pursuing a circular economy model. By utilizing suppliers that implement one or both types of these initiatives customers can quickly affect their emissions. (PwC,2024) (Eearnst & Young (EY),2021) (Deloitte,2023)

Spotting a Sustainability Minded Supplier

"Identifying a sustainable supplier and implementing a net-zero supply chain is no easy feat. It can be difficult to find the information necessary to make an informed decision and there is also the potential of finding a candidate who is not what they appear to be.

Here are a few tips for identifying sustainable suppliers:

Existing Net Zero, carbon neutral, etc. operations, not just promising for the future.
Regular corporate responsibility reporting; annual reports are a reliable source.
Educated workforce, who are aware of an organization's efforts and priorities when it comes to sustainability."

Industriella lösningar för hållbarhet

Upptäck METTLER TOLEDO:s industriella vägnings- och dimensioneringslösningar som hjälper dig att nå...

METTLER TOLEDO is a great example of what a sustainability-minded supplier can be. Read our corporate responsibility report to learn more.

Sökförslag

Sustainable Supply Chain Solutions

Sustainability has become essential for businesses recently, and manufacturers are no exception.

Sustainability; No Longer Simply a Buzz Word

Net Zero Supply Chains and Circular Economies

Spotting a Sustainability Minded Supplier

Industriella lösningar för hållbarhet

References

Sökförslag

Sustainable Supply Chain Solutions

Sustainability has become essential for businesses recently, and manufacturers are no exception.

Sustainability; No Longer Simply a Buzz Word

Net Zero Supply Chains and Circular Economies

Spotting a Sustainability Minded Supplier

Industriella lösningar för hållbarhet

References

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