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Home » Watch: How Can Supply Chains Embrace Sustainability?
VIDEO

Watch: How Can Supply Chains Embrace Sustainability?

February 25, 2022
Robert J. Bowman, SupplyChainBrain

A discussion about the key role that supply chains play in fighting climate change and ensuring sustainability in their operations, with two analysts from Accenture: Kris Timmermans, senior managing director of strategy consulting and supply chain and operations lead, and Matias Pollmann-Larsen, sustainability lead for supply chain and operations.

As one of the biggest emitters of carbon, supply chains have a central role to play in the fight against climate change, Timmermans says. They’re responsible for around 60% of all global emissions, and half of those emissions come from seven industries: food, fast-moving consumer goods, fashion, automotive, electronics, freight and construction. In an average company, the supply chain accounts for more than five times the emissions generated by the rest of the organization.

At the same time, Timmermans says, supply chains are among the biggest victims of climate change. Nearly half of the CEOs surveyed by Accenture said they’re struggling with supply chain disruptions caused by extreme weather events. “There’s no alternative but to create resilient, responsible supply chains that address emissions, circularity and trust, and build sustainability,” he says.

Intent as they are on merely surviving in a time of crisis, supply chain leaders might think it difficult to make the case for prioritizing sustainability. But Pollman-Larsen says the business case for doing that “has never been clearer.” With 74% of consumers believing that ethical corporate practices are an important criterion for choosing a brand, companies that fail to focus on sustainability can expect to lose business. They might also be barred from entering lucrative markets, and be subject to lawsuits by activist investors and customers. Sustainable companies also have better luck attracting talent in a time of labor shortages. And those that are found to be employing child labor in their supply chains can suffer a huge drop in company value overnight.

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