RESPONSIBLE
SOURCING
IS A
DELICATE BALANCING ACT
A means of meeting sustainability goals , supplier sourcing requires both vendors and existing suppliers to be part of the solution
WRITTEN BY : SEAN ASHCROFT
The global move to net zero has to be a team effort , with governments , businesses and individuals all working together for the same goal . In the same vein , then , it ’ s vital for organisations and their suppliers to collaborate to the same end – especially with Scope 3 supply chain emissions making up an estimated 80 % of the carbon footprint of any business .
Responsible sourcing , also known as ‘ supply chain responsibility ’, is a voluntary commitment by companies to take into account social and environmental factors when managing their relationships with suppliers .
There are numerous independent bodies that help companies develop their approach to responsible sourcing . One such guide is from the International Chamber of Commerce ( ICC ), which is a series of steps based on real-life experiences collected from ICC member companies worldwide . Guides are helpful , but the reality is that businesses have to exercise their own judgement on responsible sourcing , and it ’ s a complex area to dig through .
How , for example , can an organisation identify a supplier who is likely to be a strong collaborator on sustainability ?
“ Procurement needs to have insight into the maturity of the supplier ’ s management system across key sustainability topics ,” says David McClintock , Marketing Director at EcoVadis , one of the world ’ s leading providers of sustainability ratings .
Identifying supplier performance on ESG issues McClintock says this should include areas such as environment , labour and human rights , ethics and also , crucially , how the supplier itself is performing in assessing its own tier 2 and 3 suppliers . “ This insight will involve not only data collection and validation ,” says McClintock , “ but also the monitoring of multiple data sources to assure reliability .”
He adds : “ Suppliers who respond and engage in a sustainability assessment , and who can show an improvement journey , is a strong sign that they are willing to make sustainability part of a long-term relationship .”
94 June 2022