As we start the year, reacting to and recuperating from the pandemic is still the highest priority. However, Covid-19 and the resulting health, economic, and social crises have reinforced the need to build more resilient and sustainable supply chains. This situation emphasizes that sustainable sourcing is a long-term responsibility that requires consistent measures. For both customers and investors, sustainable and ethical supply chains have become non-debatable, and 2021 offers the potential for change-making.
To help you in achieving your goals, we propose four sourcing guidelines for 2021.
In reality, a more profound understanding of your suppliers and the climate emissions and climate-related risks in your supply chains permits you to accomplish more resilience in the supply chain accompanied by sustainable sourcing. You are promoting your pandemic reaction plan and your sustainability responsibilities by focusing efforts to improve supply chain visibility, identify hotspots, and collaborate with suppliers.
Guaranteeing social compliance and eliminating human rights issues from the supply chain has become a critical and multifaceted task for companies – especially looking at the currently discussed mandatory human rights due diligence (e.g. the “Lieferkettengesetz” in Germany).
The UN Guiding Principles on Business and Human Rights provide businesses with voluntary guidance on their human rights commitments. Further human rights references are the Sustainable Development Goals (SDGs), the OECD Guidelines for Multinational Enterprises, and the ILO MNE declaration. Voluntary standards, which have evolved rapidly in recent years, can be beneficial but are often not adhered to enough. Now the government also needs to recognize that new, legally enforceable laws are mandatory to make companies accountable for human rights. Governments are gradually evolving in several countries in this regard.
Making human rights a priority and setting targets before it becomes legally binding can give a head start in from the competition.
And in the end, customers want to see that you are making a constant, long-term effort to bring about lasting change.
While consumer demand for sustainable and responsible sourcing continues to grow, particularly in times of the pandemic, 2021 can be a year for your company that promises many opportunities for change and growth. Sustainabill helps you meet this demand by making it easy to enforce these guidelines in a sustainable business. With the sustainabill cloud platform, you engage with suppliers, map your supply chain down to the commodity or raw material level, where possible, monitor sustainability risks and track progress towards your sustainability targets.