Supply chain sustainability refers to the integration of environmental, social, and economic considerations into supply chain management practices to minimize negative impacts on people, planet, and profits. It is important because it helps businesses ensure the long-term viability of their supply chains, enhance their brand value, comply with regulatory requirements, and contribute to global sustainability efforts.
Some of the key risks associated with unsustainable supply chain practices include reputational damage, legal liabilities, loss of stakeholder trust, increased costs due to supply chain disruptions, and negative environmental and social impacts.
Sustainable supply chain management can help businesses reduce costs by improving operational efficiency, reducing waste, lowering energy consumption, enhancing supplier relationships, and reducing the risk of supply chain disruptions.
The key regulatory requirements related to supply chain sustainability in India include the Companies Act, 2013, the National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business, 2011, and the Companies (Corporate Social Responsibility Policy) Rules, 2014.
Businesses can engage their suppliers to enhance their social and environmental performance by setting sustainability expectations, providing training and capacity-building support, conducting supplier assessments, and providing incentives for sustainable practices.
Supply chain sustainability can contribute to achieving the SDGs by promoting sustainable production and consumption, reducing poverty and inequality, ensuring decent work and economic growth, promoting responsible consumption and production, and combating climate change and its impacts.
Some common supply chain sustainability metrics that businesses can use to measure their performance include carbon emissions, water usage, waste generation, supplier compliance with sustainability standards, and stakeholder engagement.
Businesses can ensure that their supply chain sustainability efforts are aligned with their overall sustainability strategy by setting clear sustainability objectives, establishing metrics and targets, conducting regular assessments, and communicating progress to stakeholders.
Some best practices for supply chain risk assessment and mitigation include conducting regular risk assessments, developing a risk management plan, diversifying the supplier base, establishing contingency plans, and maintaining transparency and communication with suppliers.
Enterslice can help businesses in India implement sustainable supply chain management practices through a range of services, including sustainable supply chain management consulting, supplier engagement and capacity building, supply chain risk assessment and mitigation, sustainable procurement policy development, sustainable packaging solutions, carbon footprint reduction strategies, supply chain data management and reporting, annual reporting and disclosure services, and sustainability compliance audit services.