Sustainability in Supply Chain

In recent years business organizations have started to place more emphasis in becoming sustainable in the supply chains. Change in climate and global environments have caused a push for rethinking business practices with the aim to reducing carbon footprint, perusing better standards of living, and ethically transacting for sustainable growth. The United Nations has put forth 17 SDGs (Sustainable Development Goals) as a benchmark for companies to uphold in tandem with their corporate vision.

Broadly the concept of sustainability encompasses three focuses – people, plant, profit. Also known as the triple bottom line (3BL) framework of sustainability is used to assess a company`s social, environmental, and economic impact. Here `People` refer to the positive or negative impact the organization has on its stakeholders – employees, suppliers, clients, and communities. `Plant` is the positive and negative impact an organization has on its natural environment which can include reducing carbon footprint, reducing waste and toxicity, use of natural resources. `Profit` is the positive or negative impact an organization has on the local, national, or international economy and can include creating employment, tax compliances, avoidance of fraud and bribery.

Right from procurement and sourcing to storage and distribution, optimization practices can be adopted that can contribute to an organization`s sustainability objectives. Engaging private firms that happen through sustainability auditing agencies that guide organization in the right directions. Shareholders and public are becoming increasingly aware in their association with companies based on the latter’s approach in sustainable policies.

However, it is to be examined whether supply chains are truly green or does it become tactic of greenwashing.

For example, a common narrative is that the switch to electric vehicles is a more sustainable alternative to fuel based engines. However, if one traces further up the supply chain for the materials sourced for making EV batteries, they will stumble all some unpleasant truths. Common materials used such as nickel and is mined in the Congo where slavery takes place on a wide and massive scale. Children and women forced to work under a $1 a day in abysmal conditions of suffocation and death.

The growing trend of consumption towards EV vehicle bring a deficit of already scare minerals. Most of the minerals are found in Australia, China, and Congo. In June 2023 Finland attempting to pass a bill that would allow for deep sea mining for materials required for EV production. This would cause immense damage to the marine eco-systems.

At The Warehouse Company, we have taken several initiatives such

Ø Installation of 160 KW of solar power systems

Ø Implementation of biodigesters at all site

Ø Use of environmentally safe cleaning products

Ø Leveraging technology to reduce carbon footprint

Ø Being certified Sedex members for safe and sustainable practices

Going forward companies need to take initiative in evaluating their supply chain. They can do this through working with organization such as, following the leads of other companies (beware of green washing) and working with their suppliers who promote green technologies and solutions.