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Understand how sustainability certification in the supply chain is essential for your enterprise to increase ESG rates.
In recent years, a growing number of enterprises have committed to working only with suppliers that meet social and environmental standards. Typically, these multinational companies expect their top-tier suppliers to meet those standards and ask those suppliers, in turn, to request compliance from their suppliers, and so it goes. The goal is to create a cascade of sustainable practices that flows seamlessly through the supply chain creating a network.
If you work on an enterprise with sustainability values, corporate social responsibility and governance you must know about the importance of operating with certified suppliers that are not only aligned to the company’s value, or signed an “no corruption”, “no waste” commitment, but mainly have all the principles of sustainability integrated throughout the entire operation.
It is an admirable idea, but it has been difficult to implement in practice. Much more than a conventional chain “eco” certificate, it is possible to offer suppliers a true guide on how to become a sustainable company, not only looking at the environmental pillar, but also implementing actions aligned to the Global Goals (Sustainable Development Goals) and corporate governance pillar. This Sustainability Certification for the entire chain ends up becoming a major competitive differential that directly impacts increasing ESG indices, attracting investors and enabling a real growth to the Enterprise.
To become a 100% responsible company and increase your ESG indexes – your responsibility is also to provide a trail of knowledge so that suppliers actually become a sustainable business. This article teaches you enterprise to certify their entire supply chain in a truly sustainable way bringing a real return to the company.
SUSTAINABLE SUPPLY CHAINS
With the increasing environmental deterioration, sustainability went from “issue of awareness ”for the sake of necessity, as it deals with the continuity of life on our planet. The realization of this reality generated great pressure for the corporations; passed on to be essential for a company, to accept sustainability as a strategic concept.
The combination of Logistics, sustainable supply chain and Sustainability concepts helped to create and develop the Sustainable Supply Chain (SSC). To be considered sustainable, a SC should not cause damage to natural or social systems and yet produce profits over a period of time; in addition, it must have customers willing to assume responsibilities with the company (PAGELL et al, 2009).
Competitive advantage does not occur individually between companies, but rather between the chains to which they are linked. Therefore, reaching a SSC has become a challenge. To become part of a SSC, companies must maintain their strategies incorporating sustainability into its activities. All links must work together, focusing on the same result.
To understand the concept of sustainable supply chain it is necessary to analyze all stages of the chain: pre-production of the product, during the production and post-production. Post-production is characterized as Circular Economy (a new way of thinking about our future and how we relate to the planet, decoupling economic growth and human well-being from the growing consumption of new resources).
Sustainability is not just about reducing impact, it is about organizing processes and quality management.
Creating and maintaining a sustainable company requires complex methods. In the scenario today, having sustainable characteristics implies long-term investments. Not enough to perform tasks in a traditional way, it is necessary to evaluate the functioning of the Sustainable Supply Chain to plan actions. For example, a company selects cheap suppliers; must achieve a balance between an ethical supplier and an affordable price. Therefore, for achieving sustainable goals, it is necessary to integrate sophisticated strategies and management efficient use of suppliers.
The growth of the chains has generated a demand for natural resources that exceeds, by far, the amount of resources available. For this reason, more visionary enterprises focused on improving their processes in order to optimize their natural resources, human and physical.
However, to be able to compete in the world market with resources these companies must, among other things:
SOLUTION
You may be wondering how an enterprise can actually certify its entire supply chain with the conviction that all processes and the entire pre-production, during and post-life cycle are SUSTAINABLE.
With the expertise in bringing sustainable solutions for large companies in the USA, Brazil and Germany, NTICS Projects understood the need and the benefit of offering and sharing this know-how launching a new business unit called Sustainable Business, with operations initially starting in the USA.
Sustainable Business is an innovative digital consulting, focused on certifying your enterprise supply chain as a sustainable business. The consulting lasts for 30 days, and is led by expert consultants as a full time support during the entire journey. At the end, your entire supply chain receives a strategic plan, prioritization of SDGs (Sustainable Development Goals) inside the company, a sustainability report, a sustainability dashboard, and the SB Seal, certifying that your supply chain are now “sustainable businesses” with quality and process management.
The certification of the entire supply chain as a sustainable business directly impacts the increase in ESG indices and the performance of your enterprise. Do you want to understand more about sustainable supply chains and how your company can increase performance through sustainability certification? Visit the SB website and talk to us!
