Sustainable supply chain management may seem like a tough goal if you don’t have direct control over your suppliers’ suppliers, but it isn’t.
Whether your business is large or small, environmental, social and governance (ESG) factors are crucial, and more than just a framework for financial institutions and investors to report on. Paying attention to ESG means companies can use their resources to build a more sustainable, resilient future.
But what about your supply chain? Perhaps you source components from countries that don’t have a great environmental or human rights record, or you don’t have sight of your suppliers’ suppliers and therefore don’t have the full picture. In a situation like this, how do you ensure your supply chain is 100% sustainable from end to end?
Balancing business and sustainability
‘It is difficult to generalise across sectors,’ says Andrew van Zyl, director and principal consultant of SRK Consulting, a leading mining consultancy. ‘In the mining sector, for instance, a central concern among responsible mining companies is the prioritisation of procurement from local sources.
‘On one level, “local” refers to the South African manufacturing sector, which produces much of the world-class equipment and technology that mines consume. On another level, this refers to extending a mine’s procurement of goods and services from its local community or local economy.
‘The latter is often associated with providing support to small, black-owned or women-owned businesses to promote job creation in communities related to the mining operation. Balancing this with emission-reduction targets may require assisting suppliers to improve their ESG performance, and measure and reduce their carbon footprints.’
Read the full article in Old Mutual Mindspace Magazine
