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Tag: Supply chain

Mars on a Procurement Pathway to Net-Zero

Posted on by dishanth
Mars on a Procurement Pathway to Net-Zero

Mars has published its open-source action plan to accelerate the drive towards achieving Net Zero emissions, including a new target to cut carbon in half by 2030 across its full value chain. The strategy also involves investing US$1bn over the next three years alone to drive climate action

The strategy incorporates an understanding of how supplier engagement, supply chain and procurement impacts their environmental footprint, as 80% of it comes from their inputs such as raw materials, packaging and logistics.

“The carbon footprint of our entire supply chain from farming through to the end of life of our packaging and everything in between is the same as that of a small country – Finland has almost exactly the same footprint,” explains Barry Parkin the Chief Procurement and Sustainability Officer at Mars Inc. “When we look at where our footprint was ten years ago, 70% or more of it is embedded in the goods or services we buy. So, procurement is therefore absolutely critical.”

This means the role of procurement, supply chain, and supplier engagement is integral to the company reaching their ambitious sustainability targets, and Parkin is acutely aware that means it is essential for them to do things differently. “Our job is to re-imagine and re-design supply chains so that they have a dramatically lower carbon footprint,” he says. “To put it another way, unless we change what we buy, or where we buy it or how we buy it we are not going to really change our carbon footprint. ”

Their roadmap involves removing approximately 15 million metric tons by 2030 and then another 15 million metric tons by 2050 when they reach net zero.  Since 2015 Mars have already reduced emissions by 8%, whilst growing the business by 60%, showing that it is possible to decouple emissions from growth and success of a business.

 

Supplier relationships 

As for any major organisation trying to address their sustainability strategy, it is impossible for Mars to make significant progress with their carbon footprint without the help and buy-in from their enormous supply networks.

“As a global company, we rely on suppliers across our value chain as essential partners in our journey to reach net zero,” says Parkin.  “Like most companies, addressing our Scope 3 emissions is challenging because of their indirect nature and our lack of direct control or visibility. Only by working with our Tier 1 suppliers can we make progress with them on their own emissions and on their upstream emissions with our Tier 2 suppliers and beyond.”

Mars was a founding member of the Supplier Leadership on Climate Transition coalition, that is a dedicated body for instigating climate action through industry-wide supply chains.  This allows companies like Mars to use their scale and influence to guide, mentor and train suppliers with emissions strategies and also celebrate their best practice.

This reflects the collaborative approach Mars is trying to adopt with all their stakeholders to reach their climate targets.  “Suppliers that demonstrate substantial progress in reducing their environmental footprint are recognised and rewarded with additional business,” explains Parkin. “This metrics-driven strategy ensures that our suppliers have a significant role in our journey towards sustainability, aligning their efforts with our commitment to addressing the climate crisis.”

To achieve this relationship, Mars sets clear expectations for suppliers regarding emissions reduction, renewable energy adoption, and sustainable sourcing. They then incorporate those climate performance metrics into some of their biggest supplier’s evaluation criteria.

 

Recipe optimisation 

For one of the global leaders in food products, pet supplies and confectionery, they are also able to leverage product design and ingredients into their net-zero strategy.  Mars describes that as ‘optimising recipes’ and procurement is again integral in making that aspect of the plan a success.

“Our procurement team actively collaborates with suppliers to identify and source new ingredients in a way which lowers emissions and advances our sustainability goals,” says Parkin. “This collaborative approach helps improve our supply chain sustainability performance, including the procurement of ingredients that have a reduced carbon footprint.”

This approach of working closely with the suppliers who provide the ingredients, allows Mars to enhance their product offerings while at the same time finding new ways to reduce the emissions associated with the recipes.

 

Buying-in to the road map 

Parkin is praising the positive reaction from their suppliers to the Net Zero Roadmap, but that is also because many of those partners have been on a sustainability journey with the company for a number of years, since setting out their first scope 3 targets for their full value chain back in 2017.

“Suppliers have expressed their appreciation for the transparency and specificity of our roadmap,” explains Parkin.  “It has enabled them to better understand our expectations and how their contributions fit into the broader picture of achieving net zero emissions. The roadmap’s emphasis on collaboration and collective responsibility has resonated with our suppliers, fostering a spirit of partnership in our shared journey towards sustainability.”

The partnership allows procurement partners to take proactive steps in their organisations and strategies to address their emissions, and be part of a collective responsibility to finding both a sustainable future and a productive business relationship.

Aside from the influence such an ambitious net-zero strategy has on the culture and direction of a company like Mars Inc, it also creates a larger impression on other companies in their business ecosystem as other brands and businesses look to follow their lead.

Barry Parkin is aware of the value of that influence, and how their procurement and supply chain can help lead others to greater sustainable achievements.

“Global companies like Mars play an important role in shaping sustainability standards and advancing climate action at scale,” he explains. “Our influence extends across the globe, allowing us to inspire change on a wider scale. When companies set high sustainability standards, it encourages others in their industries to follow suit.”

He adds: “Companies like Mars have the resources, expertise, and innovation capabilities needed to pioneer sustainable practices and technologies.

“We can invest significantly in research and development, pilot groundbreaking initiatives, and implement sustainable solutions beyond the reach of smaller organisations. This proactive approach not only benefits the environment but also builds a positive reputation with environmentally conscious consumers and attracts like-minded partners.”

If a globally recognised brand like Mars can leverage their sprawling supply and procurement network for better environmental outcomes, it can only help to bring others on the same journey. “This ripple effect fosters industry-wide transformation, promoting a more sustainable future,” finishes Parkin. “If a business such as Mars can halve it’s footprint by 2030, that matters.”

 

 

 

Source   Sustainability

Greenwashing is out: companies need to get serious about their sustainability journey

Posted on by dishanth
Greenwashing is out: companies need to get serious about their sustainability journey

Businesses are increasingly being held accountable for their environmental and social impact. And Siegwerk, a global provider of inks and coatings for packaging, has taken a leading role in driving sustainability within the sector. The company is committed to producing packaging solutions to drive a circular economy for the industry, and supporting sustainable transitions along its supply chain.

Like many companies, Siegwerk has taken an incremental approach to expanding its sustainability strategy. “We started our sustainability journey by looking at how our products could better enable a circular economy,” says Alina Marm, Global Head of Sustainability and Circular Economy at Siegwerk. “That laid the groundwork for us to launch an entire new strategy on sustainability with a broad scope, covering carbon neutrality targets and diversity as a quantifiable target, but also looking at the conditions in our supply chain and creating transparency around these conditions in order to continuously improve.”

For Marm, the three primary aspects that define sustainable packaging are true circularity, carbon neutrality and fairness in the supply chain: “Carbon neutrality meaning zero emissions, and fairness in the supply chain meaning that there’s nobody who suffers as a result of your business practices.”

There is an increased need for transparency around companies’ sustainability data. Consumers are more educated about greenwashing and will no longer just take companies at their word when it comes to sustainability claims. Special interest groups such as NGOs are also publicly highlighting discrepancies between company commitments and performance.

“There is a huge regulatory push to bring sustainability reporting on par with financial reporting. And this is a game-changer. It’s going to make it much easier for consumers to look up data and make decisions about which products to buy and which companies to support,” Marm says.

But this is one area that is severely lagging. A survey conducted by Deloitte in April 2022 revealed that only 3 per cent of consumer companies say they produce sustainability data that is as accurate and verifiable as their financial data. Siegwerk is one of the first companies in its sector to commit to reporting on the carbon footprint of its products. “There is no option but to embrace sustainability holistically,” says Marm. “It’s not just about doing the right thing, it’s also about remaining competitive and future-proofing your business.”

 

 

 

 

Source    Independent

Walmart and General Mills build a sustainable food supply

Posted on by dishanth
Walmart and General Mills build a sustainable food supply
Working as partners in regenerative agriculture projects, Walmart and General Mills are working with authorities to create a more sustainable food system

Disruption of the food supply chain is perhaps the single most impactful event that can have detrimental effects globally. Also, the emissions that are produced as a result of the global food supply are just as impactful to our future and the shortage of food itself.

According to 2018 data from the United States Department of Agriculture (USDA) meat, eggs and nuts are the primary sources of food across the states while vegetables are the third largest and fruit is at the bottom. However, from what we’ve seen over recent years, many would suggest the meat supply chain accounts for a large proportion of the industry’s emissions and is therefore unsustainable in its current mass-production form.

Now, this is not to blame the humble cow or any other animal for climate change, but more the processes in which meat is reared and distributed across the US. With certain regenerative principles in place—and the support from the public to reduce consumption—farms are known to provide higher quality goods that are nutritionally beneficial.

How does regenerative agriculture support a sustainable food system?

This is neither a slight of common habits, nor a simple task to conduct. In order to make the food system sustainable economically, consistent, and less impactful to the climate, examples of regenerative agriculture show the impacts of more mindful farming.

On the 17th October 2023, General Mills and Walmart announced a joint effort that will likely spark further consideration as the organisations advance regenerative agriculture across 600,000 acres of US soil by 2030. This project is about reducing the emissions and resource-drain from farming, improving soil health and, in turn, product quality.

The primary projects will be supported through grant funding from the National Fish and Wildlife Foundation (NFWF) and will reshape the process for growing crops like wheat across the Northern and Southern Great Plains.

Based on the research from the USDA, grains are the second most-consumed foods in the country after the meat, eggs, and nuts group.

These two corporations will also collaborate with Sam’s Club, a division of Walmart that offers superior quality and pricing for millions of items supplied to the US and Puerto Rico.

“Through this partnership, we will work hand-in-hand with Walmart and Sam’s Club to help regenerate the acres of land in the key regions where we source ingredients for our shared business,” says Jon Nudi, Group President, North America Retail at General Mills.

“We are excited by the opportunity to bring our products, including Pillsbury refrigerated dough and Blue Buffalo pet food and treats, to Walmart shelves more sustainably, with the help of our merchants and farmer partners.”

The three organisations believe that regenerative agriculture holds the key to emissions reduction in the supply chain and tackles many of the challenges within the modern food system. They also recognise their collective footprint and overall impact on the industry, and therefore will set the benchmark for regenerative agriculture implementation in the wider industry.

Walmart’s and General Mills’ sustainability alignment

Both organisations are impacted by the fate of the planet. As influential businesses in the food supply chain—Walmart operating across many facets of consumer goods—sustainability is now at the core of their future projects. Walmart’s net-zero emissions target is set for 2040 and will be driven by a number of investments into clean energy, providing 100% renewables to its facilities by 2035. The path to net-zero in Scope 3 requires further action to support its partners, suppliers, and customers to deliver on their own emissions targets.

When it comes to securing the food supply chain, Walmart dedicates much of its support to preserving land for regenerative projects and in investing deforestation-free product sourcing, which was recognised as one of the key downfalls of the meat supply chain—limited space resulting in deforestation.

“We’re committing to making the everyday choice the more sustainable choice for consumers,” says John Laney, Executive Vice President, Food at Walmart US.

“This collaboration is an example of how we are working across our value chain on intentional interventions to help advance regenerative agriculture and ensure surety of supply for these essential food products for the long term.”

As a key supplier of food globally, General Mills owns some of the much-loved brands and will continue to ensure that these products are delivered at lower impact to the planet. Also focusing on regenerative agriculture, energy sourcing and packaging innovation will also allow the company to drive healthier approaches in the food supply chain.

 

 

 

 

Source   Sustainability

Sandvik: Building sustainability into upstream supply chain

Posted on by dishanth
Sandvik: Building sustainability into upstream supply chain
Mats W Lundberg is the Head of Sustainability Strategy for Sandvik, which is delivering a strategy to decarbonise raw materials to cut supply emissions

According to figures from Sandvik’s 2022 Annual Report, the business of sustainable manufacturing and mining machinery is booming. The high-tech engineering group supplies new solutions to industries to support their actions in these areas, which will also help them reach their sustainability goals.

However, it’s about more than just machinery as the company is now delivering a new sustainability strategy that will allow further impact in the future while also ensuring commercial success for Sandvik and the users of its solutions.

In September 2023, the company made a significant update to its sustainability shift strategy, which was originally brought to public attention in 2019. This also aligns with how the structure of the organisation has evolved as Sandvik Materials Technology was separated from the Group and listed on Nasdaq Stockholm as a business called Alleima. Alongside this further businesses were acquired by the company, making sustainability a crucial strategy for its growing business.

“We are leaning on the good work that has already been done,” says Mats W Lundberg, Head of Sustainability, Sandvik.

“But the field of sustainability is evolving. It is becoming more mature with new legislation and increasing customer, shareholder and employee expectations. We need to evolve with it and meet the new demands.”

The Key focus areas of Sandvik Group’s sustainability strategy include:

  • Sustainable solutions – An emphasis on closely aligning with customers and their businesses, pioneering change through engineering
  • Ecosystem regeneration – Sandvik’s innovative approach to collaborating with partners throughout the value chain, focusing on revitalising diverse ecosystems, promoting responsible water management, and mitigating pollution
  • Circularity and resource optimisation – The objective encapsulates the aspiration to achieve greater output with fewer resources and to embrace resource efficiency as a fundamental mindset
  • Net Zero Commitment – Sandvik pledges to attain science-based net zero targets, which received approval from the Science Based Targets Initiative in September 2023
  • People and Communities Engagement – Sandvik’s approach to its interactions with the communities in which it operates and provides its products
  • Responsible Business Practices – commitment to conducting ethical and responsible operations across the entire value chain.

 

Sandvik solutions for the sustainable industry

As an organisation that covers a number of industry practices, and is heavily involved in early-stage supply chain activities, Sandvik is digging deeper to create more value for businesses through its mining and machinery solutions. Taking a leading role in decarbonising its supplies from the top, Lundberg explains how the business will generate value across multiple facets.

“We have focused much more on our contribution and how our businesses create value”, says Lundberg. “The new strategy is connected to the Sandvik purpose of advancing the world through engineering, it is forward leaning and shows that Sandvik wants to be a positive driving force.”

Lundbergy is also correct in saying that raw material is one of the primary components of all value chains, whether that involves the production of goods or machinery to ensure services are provided sustainably.

“For any product to be truly sustainable, the entire value chain needs to be sustainable, from raw material sourcing to the manufacturing and usage of the products,” says Lundberg. “And we operate in important and relevant areas here; the mining and processing of raw materials and the machining. If we can contribute with sustainable solutions in these areas we can have a massive impact on sustainability outside of our own operations.”

McKinsey & Company research states the mining industry generates between 1.9 and 5.1 gigatonnes of carbon dioxide equivalent (CO2) every year. These emissions originate from all of the major resources required to sustain consumer product industries, but also those that are critical for providing sustainable electricity and clean-energy-driven solutions to transport. An example of this being the use of cobalt, nickel, and lithium in the electric vehicle (EV) sector as major components in platform batteries.

As the global demand for raw materials grows, the pressure on mining, rock excavation, drilling, and cutting processes is forever impactful to the emissions embedded in their supply chain. Understanding how crucial this stage is to the reduction of overall emissions in the atmosphere, therefore the ability to reach net zero, will allow greater impact on the environment moving forward.

 

 

 

 

Source  Sustainability

Sustainable Supply: Transforming the Global Supply Chain with Green Practices

Posted on by dishanth
Sustainable Supply: Transforming the Global Supply Chain with Green Practices

Sustainable Supply: Transforming the Global Supply Chain with Green Practices

People can already feel the effect of global warming, making them ask what they can do to combat the crisis. Riding a bike to work and recycling are excellent starting points.

Still, the world needs more significant changes to ensure future generations have opportunities to succeed. How can humanity achieve a better planet? It starts with a sustainable supply chain.

Here’s a guide on why it’s the next step in solving the climate crisis.

 

How to Achieve a Sustainable Supply Chain

Actions speak louder than words, and they’re how the Earth will achieve long-lasting change. These six strategies demonstrate creating a sustainable supply chain this decade and beyond.

1. Switch to Renewable Energy Sources

Sustainability starts with switching to renewable energy sources. Solar, wind, nuclear and geothermal power are only some of the options available. Renewable energy sources are better for the environment because they don’t release greenhouse gases (GHGs), such as carbon dioxide (CO2). They’re also better for the supply chain because you can produce renewable energy locally instead of depending on a far-away supplier.

Renewable energy has increased in the past few decades, with experts seeing consumption triple since 2013. These sources have become more commonplace as governments and companies see the benefits of installing solar panels, wind turbines and other technologies.

2. Reduce Fossil Fuel Consumption

Increasing renewable energy consumption needs to happen simultaneously with reducing fossil fuel utilization. According to the United Nations, fossil fuels are the largest contributor to climate change. Coal, oil and gas constitute about 90% of CO2 and 75% of GHG emissions. Ocean temperatures are rising, glaciers are melting, and natural disasters are worsening daily. It’s hard not to look at fossil fuel as the primary suspect.

The supply chain would benefit from reducing its fossil fuel consumption because of how volatile prices can be. Gas prices fluctuate with supply and demand, so even minor disruptions in production can significantly increase costs. For example, severe weather increases natural gas demand and leads to suppliers raising rates. Relying on renewable resources removes the uncertainty for many companies.

3. Electrify the Fleets

Removing fossil fuels from the supply chain means scrutinizing which industries use them the most. A good place to start is the automotive industry, considering the millions of cars and trucks driving on the streets daily. Most automobiles you pass have tailpipes emitting GHGs. The European Union (EU) says road transportation contributed nearly 72% of total emissions from member nations.

Electrifying fleets is the fastest way to reduce emissions from the transportation industry. Electric vehicles (EVs), trains and other forms of transport are slowly electrifying as manufacturers see the benefits of using this technology. The global supply chain would become more sustainable and secure because you can produce electricity at home. In contrast, oil and gas often come from international suppliers. Plus, EV research, manufacturing and production create thousands of job opportunities worldwide.

Integrating EVs into the supply chain requires more widespread adoption. Unfortunately, EVs cost more than petrol cars due to higher production costs. Manufacturing should become less expensive in the next decade to make these vehicles more accessible and affordable.

4. Change the Packaging

E-commerce is another sector worth scrutinizing due to its environmental impact. The world has relied more on e-commerce since the pandemic, with online retailers making shopping more accessible for consumers. Experts foresee a 14.7% compound annual growth rate (CAGR) until 2027 in the e-commerce market, demonstrating how the world has shifted in its buying preferences.

Reducing the environmental impact of e-commerce entails switching to EVs and changing the packaging. Many sites use non-recyclable materials for their packages, and the environmental cost adds up quickly. The Environmental Protection Agency (EPA) says packaging and containers significantly contribute to municipal solid waste, adding to landfills worldwide.

The supply chain would become more sustainable if e-commerce companies switched to more sustainable packaging. Some businesses have changed to mushroom, seaweed, cornstarch and other more environmentally friendly materials for their packages. These options are more sustainable because they’re biodegradable and compostable. The end user can dispose of the container and feel better about their carbon footprint.

5. Emphasize ESG Scores

How will the planet get large companies on board with a sustainable supply chain? The leading motivator for multinational corporations is environmental, social and governance (ESG) scores. This metric tracks how a company promotes environmental policies, social justice and governing equity.

How many women and people of color are on the board? What were a corporation’s emissions last year? ESG scores determine these statistics on a 0 to 100 scale, with a score below 50 indicating poor performance.

Why do ESG scores matter? Investors are talking with their wallets. Shareholders are more likely to invest in companies demonstrating care for the environment and people within the organization. Businesses with minimal or no concern for the planet are more likely to fall behind because they’re less sustainable and profitable.

6. Push for Government Action

Ultimately, it’s up to governmental bodies worldwide to enforce environmental policies and hold companies accountable. Corporations can release statements supporting eco-friendly ideas, but some find themselves greenwashing and doing more harm than good. Environmental lobbyists and activist groups push the government to push businesses to do the right thing and enact favorable policies.

 

Why a Sustainable Supply Chain Is Necessary

Companies have touted making a sustainable supply chain this decade, so it’s worth asking why it’s necessary. Here are a few reasons why improving the supply chain is vital.

Stabilizing Economies

The supply chain disruptions from 2020 to 2022 demonstrate global economies’ vulnerability. A sustainable supply chain means increasing regional domestic solutions instead of relying on international suppliers. Ports can close due to infectious diseases and other issues, so making an efficient supply chain is essential moving forward.

Curbing Global Warming

The top reason for making a sustainable supply chain is to curb global warming. The National Aeronautics and Space Administration (NASA) says summer 2023 was the hottest on record, with information dating back to 1880. Scientists attribute the rise in global temperatures to human activity worldwide. Reducing this rise requires making the supply chain more sustainable. s

GHGs are a significant factor in climate change, with countries like the U.S., China and India contributing the most each year. Reducing emissions is essential to prevent climate change’s worst environmental and human health impacts. Research shows a positive correlation between CO2 emissions and disability-adjusted life years, meaning reducing emissions leads to longer and healthier lives.

Lowering Costs

A sustainable supply chain makes sense for the environment and a company’s bottom line. Sustainable supply chains lead to reduced costs associated with energy production and consumption. Relying on solar and wind power at home is less expensive and more reliable in the long run than depending on foreign oil.

 

Ensuring a Sustainable Supply Chain for the Future

Time is running out to stop the worst effects of climate change. Fortunately, the planet still has a few years left to control rising temperatures and set humanity on a better path. Creating a better Earth starts with building a more sustainable supply chain. These six ways demonstrate what needs to happen.

 

 

 

 

Source  –  Happy Eco News

The Power of Responsible Sourcing

Posted on by dishanth
The Power of Responsible Sourcing

Climate change, circular economies, ESG and sustainability have all become business priorities over the past few years, with global supply chains sitting right in the middle of these issues – both as a major contributor to the problem and as an area of focus for improvements. Businesses must, therefore, purchase materials and products from companies that can show that they have good sustainability practices, from both a labour and manufacturing point of view.

The benefits of responsible sourcing and sustainable packaging

Responsible sourcing has been shown to influence consumers buying decisions, with studies suggesting that up to 70% of consumers would pay more for sustainably-produced goods. Businesses must therefore meet the increasing demand from consumers for products that are both environmentally and socially responsible.

Yet businesses are still learning when it comes to improving their responsible sourcing process, with Richard Howells, Vice President of Solution Management for Digital Supply Chain at SAP, describing it as an “evolving landscape,” allowing businesses the opportunity to combine sustainability initiatives with efficiency efforts and customer demand.

“While the ‘Amazon Effect’ has led to heightened consumer expectations for quick delivery, there is a similar demand for eco-friendly products,” Howell says. “In fact, 90% of Gen X consumers say they’d be willing to pay more for sustainable items – compared to 34% just a couple of years ago.

“In today’s market, for businesses to prosper and expand they must discover novel approaches to meet rising demands for ESG standards, placing greater emphasis on responsible sourcing.”

Responsible sourcing within procurement

For businesses to build a responsible and resilient supply chain, leaders need to acknowledge that procurement is the first step. “The procurement team begins the sourcing process by evaluating potential goods and materials that would make up the products made and distributed in the supply chain,” says Etosha Thurman, Chief Marketing & Solutions Officer, of Intelligent Spend and Business Network at SAP.

“In their evaluation, they are considering the environmental, societal, and economic impact of sourcing the materials. For example, potential risks with energy efficiency, water and land usage, and hazardous materials.”

To ensure businesses adopt responsible sourcing, leadership needs to set out clear definitions which align with the ESG goals of the organisation. Procurement professionals must also be educated about the necessary steps to ensure the goods and services under consideration meet the criteria.

Technologies role in responsible sourcing

In today’s rapidly evolving business landscape, technology stands as a pivotal ally in driving sustainability across the source-to-pay (S2P) and procure-to-pay (P2P) processes. By seamlessly integrating innovative solutions, organisations can navigate strategic sourcing, procurement, and supplier relationships while adhering to responsible and ethical practices.

“Technology can help organisations follow sustainable practices at every stage of the S2P and P2P process,” Thurman says. “In strategic sourcing, the right solutions can help analyse current and future spending, find and source from suppliers, ensure compliance and reduce risk with sustainability in mind. SAP Ariba Sourcing is a good example of a solution that enables users to prioritise suppliers that align with ESG goals.”

During the P2P process, Thurman reminds organisations that it is important to use solutions that help guide business users to make risk-aware and sustainable purchases, ensuring contract compliance with sustainable procurement policies. “The guided buying capability in SAP Ariba Procurement solutions can help guide employees to purchase from sustainable suppliers,” she adds. “Technology can also be a valuable tool in nurturing relationships with sustainable suppliers. Taulia’s Sustainable Supplier Finance solution allows users to reward suppliers that share their ESG qualifications with early payment incentives.

What’s more, to build a sustainable and risk-resilient supply chain, businesses need to establish strong relationships with key suppliers, which must be diverse. The supply chain data then needs to be monitored and analysed in real time, and investment needs to be made in technologies that can enhance supply chain visibility and agility.

“Efficient, effective technology can help businesses acquire and manage the data and information they need to measure compliance, minimise risk and boost sustainability,” Howells says. “Businesses must examine their value chains comprehensively, from sourcing raw materials to understanding the end product’s lifecycle. By adopting technology-driven solutions like blockchain and IoT, companies can ensure that their sustainability efforts extend beyond the surface level to every aspect of their operations.”

What’s more, SAP works with its partners to provide efficient solutions to business operations, while recognising the importance of monitoring and measuring not only cost, speed, profitability and customer service, but increasingly, emissions, waste, inequality and other sustainability and risk KPIs across the supply chain. This can be accomplished by connecting every process, contextualising every decision and collaborating with partners without obstacles. However, there is no one-size-fits-all solution for supply chain complexities.

Howell explains: “Buyers on SAP Business Network can choose vendors based not only on price and availability but also on human rights records and third-party sustainability ratings. Suppliers share human rights questionnaires to their profiles on SAP Business Network, where buyers can access them. Buyers are automatically notified any time a supplier they are doing business with updates their questionnaire. This saves suppliers time and helps buyers easily prepare for due diligence processes.”

Final thoughts

Embracing responsible sourcing is paramount for businesses aiming to navigate the evolving landscape of sustainability, satisfy consumer demands and enhance their growth prospects. Through integrating technology, fostering diverse supplier relationships and monitoring supply chain data, organisations can achieve a holistic approach to ESG standards, ensuring lasting positive impacts on both their operations and the wider world.

In a rapidly changing business environment, responsible sourcing stands as a gateway to sustainable success. By aligning with ESG goals, leveraging technology-driven solutions, and nurturing supplier relationships, businesses can forge resilient supply chains that not only meet current demands but also pave the way for a more environmentally and socially conscious future.

 

 

 

 

Source  Sustainability

Nestlé & Cargill use cocoa shell in new lowcarbon fertiliser

Posted on by dishanth
Nestlé & Cargill use cocoa shell in new lowcarbon fertiliser

Approximately 5% of global greenhouse gas (GHG) emissions are currently produced from the production and use of conventional fertiliser, and more than half of the carbon footprint of wheat grown in the UK is related to fertiliser use.

Nestlé UK & Ireland and Cargill have partnered to develop innovative solutions in regenerative agriculture. The initiative — a UK supply chain trial — aims to assess whether cocoa shells from a confectionery site in York could be used to create a low carbon fertiliser.

The trial to evaluate the fertiliser’s performance on crop production, soil health and GHG emissions reduction will last two years, and, if successful, could produce and offer up to 7,000 tonnes of low carbon fertiliser to farmers in Nestlé’s UK wheat supply chain. This amount of fertiliser equates to around 25% of Nestlé UK’s total fertiliser use for wheat.

“Farmers often find themselves to be among the first groups to be exposed to global issues, and these risks are then borne by the food system we all depend upon,” shares Matt Ryan, Regeneration Lead at Nestlé UK & Ireland.

“We have to find ways to build more resilience into the system and optimising our use of natural resources is a critical part of this.

“This project is a small, but very meaningful step towards a net zero future, where farmers, local enterprises, and nature all stand to benefit”

 

Reducing emissions across the supply chain

Cargill supplies the cocoa shells from its York facility where the shells are processed to become key ingredients in iconic products like KitKat and Aero.

Recycling valuable nutrients from waste streams within the food system provides a promising opportunity to create a lower emissions supply chain. Scaling up low carbon fertiliser production in the UK can provide farmers with a more sustainable product at a reliable price.

The trials, which were designed and are being overseen by York-based Fera Science Ltd, are currently taking place on arable farms in Suffolk and Northamptonshire. They are designed to investigate the performance of the fertiliser in terms of wheat yield and quality, as well as assess the impacts on soil biodiversity and GHG emissions in comparison to conventional products applied on the same farms.

“We have now finished harvesting and we’ve successfully grown a Winter wheat crop using this new fertiliser. We’ve compared two parts of the field, one which used the cocoa shell fertiliser, and one which used with the conventional fertiliser, and there is no significant difference in the yield so we can see that it works,” says Richard Ling, farm manager at Rookery Farm, Wortham in Norfolk, who supplies wheat to Nestlé Purina.

“We are really reassured with the results and are looking at running further trials. It’s a step change to be able to use a fertiliser made from a waste stream and see the same results as using a conventional product. It’s an exciting and promising time and we are pleased to be taking part in these trials to help reduce the carbon emissions from our farming.”

For all companies involved, the trial embodies their commitment to innovation, collaboration and sustainability throughout the supply chain. Alongside its pledge to net zero emissions by 2050, Nestlé has committed to sourcing 50% of its key ingredients from regenerative agricultural methods by 2030 and this project is an example of the innovative solutions supporting the company on that journey.

“Cargill and Nestlé have been working together for more than 60 years building resilient supply chains across communities where we both operate. We are excited to continue to build on this strong partnership through our innovative cocoa shell fertiliser trial,” says Sam Thompson, Global Engineering Lead at Cargill Cocoa & Chocolate.

“Together, we hope to contribute to a more sustainable future for the British farming industry.”

 

 

 

 

Source  Sustainability 

 

 

The road to sustainable procurement

Posted on by dishanth
The road to sustainable procurement

For many, procurement – determining a supplier for goods or services – is an invisible process. Despite this, it’s a completely vital one that keeps the global economy humming along.

How do goods get from one place to another? How are they procured, from where are they supplied, and how do they move down the chain? These are all questions procurement teams have to consider daily. Managing procurement is synonymous with running a sound business: according to one statistic, 70% of what an organisation earns is spent on suppliers.

The experience of COVID-19 and the pandemic’s disruptions to supply chains have reminded all of us – through higher prices and the inability to acquire basic goods – of the significance of this silent mover of the economy. Being reminded of procurement’s vitality and omnipresence begs questions about the process’s sustainability.

For many, a sustainable procurement process comes down to smart economics. Proxima is a consultancy that helps companies – FTSE 100 ones among them – sustainably transition their procurement and logistics operations. The company’s Executive Vice President for Procurement, Simon Geale, views approaches to procurement as well as sustainability through the lens of spending wisely, and in this regard, the interests of both most certainly overlap.

He goes on: “In very simplistic terms, procurement needs to embed sustainability as a form of value, in the same way as it might think about speed, quality, cost, etc. when creating strategies, buying or measuring outcomes. At certain times, this will mean finding new solutions; at others, it can mean influencing and convincing stakeholders where change can be beneficial in business terms.”

But it’s not always easy accounting for sustainability in procurement, which is often an indirect emission, one which the primary company has to in some way outsource to a contractor. “For most sectors, scope three greenhouse gas emissions – the indirect impacts that occur in a company’s value chain – are the largest source of emissions, but getting a handle on them is notoriously difficult.” These are the words of Selina Donald, the Founder and Chief Sustainability Advisor of The Bulb, a sustainability consultancy that specialises in events. As the leader of the sustainability and social values strategy for the recent Birmingham Commonwealth Games’ Opening and Closing Ceremonies, Donald was tasked with overseeing over 100 suppliers.

Recognising that “no one can become net zero until we all become net zero”, Donald stresses the need within procurement to align with like-minded suppliers, as well as to rate the sustainability and social values of potential suppliers.

“In their contract, there’s a clause that requires them to provide sustainability data and ensure that their values align with expected on-site behaviours across power and waste management, transportation and design.” In the event she is not sure, she deploys tools like TRACE, a carbon calculator that tracks the environmental impact of suppliers. By implementing workshops and maintaining regular communication, sustainability was kept at the forefront of her company’s relationship with suppliers. By setting up a direct line via an email address, suppliers were engaged “to provide sustainability support as appropriate and for them to put forward more sustainable options when delivering the product or service”.

Donald neatly summarises the approach: “We recognised that a key driver to meeting our Sustainability and Social Values commitments was working with a like-minded supply chain that can not only meet requirements and provide value for money, but, at the same time, hold sustainability, diversity, and ethical sourcing practices at the core of their operations.”

Still, it doesn’t come down solely to checking your partners. A deep understanding of markets is also informative and essential. Only then will sustainable procurement become shockproof. Going back to Simon Gaele at Proxima, he says: “Understanding the supply market means you will get the best outcomes available to you. If you don’t understand the market, you will always buy what you know, or, at best, be constrained by your own ideas and open to supply market risk. That’s a dangerous place to be in.”

Gaele does concede that the market – the lifeblood of enterprise and capitalism – does have a seminal part in the quest for sustainable procurement: “As unfashionable as it is to say sometimes, markets inform what we should be paying for sustainable solutions; even in a deep collaboration where we are ‘designing to X’, market intelligence informs commercial value calculations, top and bottom line.”

 

 

 

 

Source – Sustainability

Apple puts pressure on supply chain to decarbonise by 2030

Posted on by dishanth
Apple puts pressure on supply chain to decarbonise by 2030

Apple has issued something of a wake-up call to manufacturing partners around the world as it aims to clean up its supply chain and tackle climate change.

Sustainability is clearly high on the agenda for CEO Tim Cook. Only yesterday (27 October) Apple announced record results for fiscal 2022 fourth quarter revenue of US$90.1bn – up 8% year on year. That put annual revenue at US$394.3bn, also up 8%.

“This quarter’s results reflect Apple’s commitment to our customers, to the pursuit of innovation, and to leaving the world better than we found it,” said Cook.

“As we head into the holiday season with our most powerful lineup ever, we are leading with our values in every action we take and every decision we make. We are deeply committed to protecting the environment, to securing user privacy, to strengthening accessibility, and to creating products and services that can unlock humanity’s full creative potential.”

Let’s hope Cook has taken into account the fact that global CO2 emissions have more than doubled since Apple was founded in 1976, so leaving the world better than when they found it could be quite the task.

 

 

Apple will track and audit key manufacturing partners on carbon

The message seems consistent from Apple, and now they are putting the onus on their key suppliers to decarbonise. Apple requires reporting on Scope 1 and Scope 2 emissions reductions related to Apple production.

Apple says it will track the progress of key partners as it aims to set the same standards in its supply chain – the company has been carbon neutral since 2020 and intends to meet the same standard across its entire supply chain.

“Fighting climate change remains one of Apple’s most urgent priorities, and moments like this put action to those words,” said Cook, Apple’s CEO. “We’re looking forward to continued partnership with our suppliers to make Apple’s supply chain carbon neutral by 2030. Climate action at Apple doesn’t stop at our doors, and in this work, we’re determined to be a ripple in the pond that creates a bigger change.”

That work Cook is referring to sees Apple investing in numerous projects around the world to create clean energy, and some smart updates to its products.

Apple has reduced its emissions by 40% since 2015, largely through adopting renewable energy. With more than 70% of direct manufacturing spend coming from more than 200 suppliers, it’s no surprise to hear they have also committed to clean energy solutions.

Major partners including Corning Incorporated, Nitto Denko Corporation, SK hynix, STMicroelectronics, TSMC, and Yuto have committed to 100% renewable energy for all production relating to Apple products.

Apple’s shift to clean energy means it now uses renewable energy for all corporate offices, Apple stores, and data centres in 44 countries.

Now the company is involved in constructing large-scale solar and wind projects in Europe to tackle the 22% of its carbon footprint that comes from customers charging their devices. Earlier this year, the company also announced new renewable projects in the US and Australia.

An update in iOS16 means iPhone users in the US can also use Clean Energy Charging – a feature that will charge your phone at the optimum time to take advantage of renewables.

 

Apple’s new climate solutions projects

Apple has announced three new projects through the Restore Fund – a carbon removal initiative that aims to generate revenue for those involved. Developed with Conservation International and Goldman Sachs, Apple is working with forestry managers in Brazil and Paraguay to restore 150,000 acres of forests and protect 100,000 acres of native forests, grasslands, and wetlands. These projects could remove 1 million metric tons of CO2 from the atmosphere in 2025.

 

New sustainability partnerships announced also include:

In Namibia and Zimbabwe, Apple is working with the World Wildlife Fund (WWF) to promote climate resilience and sustainable livelihoods through the Climate Crowd program.
In China, Apple has partnered with China Green Carbon Foundation to conduct research, demonstrate best practices, and build stakeholder networks to increasing the amount and quality of responsibly managed nature-based carbon sinks.
In Europe, the Middle East, and North Africa, Apple is launching a new partnership with ChangemakerXchange to strengthen climate action and leadership in the region. The initiative will launch in Egypt at COP27.

 

 

 

 

Source Sustainability

 

Recycled components and plastic-free packaging: Samsung powers up 2025 sustainability plan

Posted on by dishanth
Recycled components and plastic-free packaging: Samsung powers up 2025 sustainability plan

All Samsung phones are to feature recycled materials from 2025, the company has pledged as part of a new set of wide-ranging sustainability targets.

The mobile technology giant said that through the new strategy it is aiming to integrate sustainable practices across each stage of production to minimise it environmental impact and build “a better future for communities around the world and the next generation of innovators”.

The commitments from part of ‘Galaxy for the Planet’, a sustainability platform designed to deliver tangible climate actions across Samsung’s business. The initial set of targets have a deadline of 2025 and together aim to reduce the environmental footprint and lessen resource depletion that results from the production and disposal of Galaxy products.

The new goals include eliminating all plastic packaging, achieving zero waste to landfill across the company’s operations, and reducing standby power consumption of all smartphone chargers to below 0.005W by 2025.

“We believe that everyone has a role to play in providing innovative solutions that protect the planet for generations to come. Samsung understands our efforts need to match our scale, our influence and the magnitude of the entire Galaxy ecosystem around the world,” said TM Roh, president and head of mobile communications business at Samsung Electronics. “Galaxy for the Planet is an important step in our journey toward creating a more sustainable world, and we will do so with the openness, transparency and collaboration that drives everything we do.”

Samsung’s products are already “thoughtfully designed” to minimise the impact on the environment during their entire lifecycle, the company said, including through the use of power-efficient semiconductor chips, sustainable packaging, energy-saving technology, and the ability to upcycle old devices.

 

 

Source Business Green