Green Supply Chain Initiatives

Regulatory frameworks and directives that drive sustainable supply chains: EUDR, CSDDD, and CBAM are supported by a transparency directive, CSRD Together, these regulations ensure that companies not only report their impacts (transparency) but also actively engage in sustainable practices (accountability) to meet the EU's goals of environmental protection, human rights, and sustainability in global supply chains. ◦ CSDDD (Corporate Sustainability Due Diligence Directive) mandates corporate accountability across the value chain by ensuring companies have due diligence processes in place to identify, prevent, and mitigate adverse impacts on human rights and the environment ◦ EUDR (EU Deforestation Regulation) requires companies to avoid products that contribute to deforestation and biodiversity loss. It mandates due diligence to ensure that products entering the EU market are deforestation-free ◦ CBAM (Carbon Border Adjustment Mechanism) serves as a carbon pricing mechanism for imports, aimed at curbing carbon emissions associated with goods transferred into the EU ◦ CSRD (Corporate Sustainability Reporting Directive) – unlike the other three – focuses on transparency through reporting. It requires companies to disclose their sustainability practices, impacts, and goals, including economic activities aligned with sustainable objectives While CSDDD, EUDR, and CBAM focus on embedding sustainability into operational and management processes, CSRD is dedicated to streamlining reporting. The CSDDD mandates due diligence across the chain of activities, ensuring that companies actively oversee risks related to human rights and the environment. Similarly, the EUDR enforces due diligence to ensure that products are free from deforestation, while the CBAM adds a financial incentive by taxing carbon-heavy imports, encouraging companies to manage their emissions. These regulations drive proactive behavior within supply chains, pushing companies to continuously monitor and adjust their practices to meet sustainability standards. The CSRD differs in its emphasis on transparency rather than operational control. This directive requires companies to publicly disclose on sustainability, providing stakeholders with information about sustainable practices. It is more about accountability to external stakeholders, fostering transparency and comparability in sustainability reporting. Reporting under the CSRD allows investors, consumers, and policymakers to assess a company's sustainability efforts, contributing to informed decision-making. It complements the process-oriented directives by ensuring that companies disclose the outcomes and practices they implement for sustainability. Frameworks like the TCFD (Task Force on Climate-related Financial Disclosures), TNFD (Taskforce on Nature-related Financial Disclosures), and Science Based Targets support the CSRD and EU Taxonomy disclosures and foster streamlined reporting and interoperability in disclosures.

Procurement and Sustainability 🌎 Procurement plays a pivotal role in advancing corporate sustainability objectives. As companies increasingly integrate ESG (Environmental, Social, and Governance) criteria into core operations, procurement emerges as a key enabler of long-term impact. Strategic sourcing decisions influence not only operational efficiency and cost, but also emissions, labor practices, transparency, and innovation across the value chain. One of the most critical areas where procurement contributes is climate action, particularly through the management of Scope 3 emissions. These emissions, which stem from upstream and downstream value chain activities, often represent the largest portion of a company's carbon footprint. Aligning procurement criteria with science-based targets is essential to driving measurable reductions and meeting regulatory and stakeholder expectations. Beyond carbon, procurement is essential in mitigating broader environmental impacts. Supplier selection and material choices directly influence pollution, waste, and the depletion of natural resources. Embracing circular economy principles—such as prioritizing renewable, recycled, and low-impact materials—can help reduce environmental risks while fostering long-term resilience and cost-effectiveness. Social considerations are equally integral. Procurement policies and practices shape the conditions under which goods and services are produced. Ensuring human rights, fair labor practices, and equitable treatment across supply chains is not only a compliance matter but also a strategic imperative to protect brand integrity and license to operate in diverse markets. Robust supplier relationships can also serve as a lever for broader societal impact. By prioritizing local suppliers, small enterprises, or mission-driven vendors, procurement can help redistribute economic value, build trust, and enhance resilience across communities. This approach aligns purchasing decisions with inclusive growth and shared value objectives. Corporate governance aspects of procurement—such as supply chain transparency, compliance, and ethical oversight—are foundational to building sustainable business models. Procurement teams are instrumental in enforcing standards, conducting due diligence, and implementing monitoring mechanisms that reduce reputational, operational, and legal risks. In sum, procurement is not a back-office function but a strategic force in sustainability performance. When integrated with ESG principles, procurement can shape resilient supply chains, accelerate climate and social goals, and reinforce accountability and transparency across the enterprise. Source: Roland Berger #sustainability #sustainable #business #esg #procurement

Today is Earth Overshoot Day. Think of it like this: if Earth had a bank account of natural resources, we just spent our entire yearly allowance. And we still have 5 months left in 2025. Here’s what that actually means for business. We’re using trees faster than forests can grow back. We’re catching fish faster than they can reproduce. We’re using fresh water faster than rain and snow can refill our rivers and aquifers. It’s like running a business where you spend next year’s budget this year, every year. Right now, we’re consuming resources 1.7 times faster than nature can replace them. That’s not sustainable math and it’s creating real business problems today. Material costs have jumped 40% in just three years. Companies are losing an average of $182 million annually to supply disruptions. The World Economic Forum now lists resource scarcity as one of the biggest risks facing businesses this decade. Companies that make their resources last longer are seeing incredible returns. Examples exist across industries and we are lucky to with many of them. Many companies have figured out how to make their products last 20+ years instead of 10, and turned that into a $20 billion side business fixing and reselling equipment. Others cut their material costs in half by designing everything to be reused. The numbers speak for themselves. When companies invest in using resources more efficiently, they typically see returns of 15-25% higher than competitors. Most resource-saving projects pay for themselves within 18-36 months, then keep saving money year after year. Energy upgrades alone can return 20-30% on investment. Waste reduction programs often pay back 5-10 times what you put in during the first year. Even simple water conservation can pay for itself in 6-12 months. The real advantage isn’t just cost savings but it’s building a business that works when resources get scarce and expensive. Companies that stretch what they have are more predictable, need less capital, and can charge more when everyone else is scrambling for materials. #earthovershootday #sustainability #circulareconomy #businessstrategy #resourceefficiency #innovation #futureofbusiness #supplychainmanagement

CSRD, GRI, IFRS, ESRS, SASB, interoperability, omnibus, CDP, SEC. How did we end up in such a sea of madness to say nothing about #sustainability? That is a question I got an answer for during the 𝐔𝐧𝐢𝐭𝐞𝐝 𝐍𝐚𝐭𝐢𝐨𝐧𝐬 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐈𝐧𝐝𝐢𝐜𝐚𝐭𝐨𝐫𝐬 (𝐔𝐍𝐒𝐃𝐏𝐈) training I participated in this week. The training imparted by r3.0 was a long-due gift to myself as part of my continuing education on True/Authentic Sustainability. Going back to the question, from my perspective, the current situation companies face with the tremendous reporting load reflects their own failure and unwillingness to address sustainability from an honest approach. Large companies and the Big 4 have been so reluctant to evaluate authentic sustainability that for almost two decades, they have pushed for an incrementalist yet simplistic approach that allows them to show only the little good things they do without disclosing whether all that is 𝐠𝐨𝐨𝐝 𝐄𝐍𝐎𝐔𝐆𝐇. Thus, we now have 50-200 pages long “sustainability” reports, hundreds if not thousands of data points, that do not answer the ‘simple’ question we all have: Is the company sustainable? Yes or No. Period‼️ Regarding the training, I would have to spend hours here summarising the key takeaways and all the insights I got from Ralph Thurm and Bill Baue, so I better leave the one I think is the most important: As an #LCA and LCSA practitioner, I have always associated sustainability evaluation with a complex process. So, I was gladly surprised to learn that the UNSDPI framework for 𝐂𝐨𝐧𝐭𝐞𝐱𝐭-𝐁𝐚𝐬𝐞𝐝 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 reporting is faster and maybe even easier to implement than current and mandatory ones such as CSRD/ESRS. Moreover, after studying several reports with the group, it was clear that most companies already have at least half of the data they would require for authentic evaluation. With a straightforward approach and clear guidance, the UNSDPI combination of trends, context-based, and transformative indicators allows companies to assess (through a scoring system) whether they are sustainable or not. More importantly, companies can tell, indicator by indicator (area of impact), how far they are from sustainable performance, allowing them to create the right and truly useful strategies. To anyone interested in true sustainability and want to take a look at the framework, here is the manual for evaluation.

India wastes 30–35% of its tomatoes every year. Most of it just rots away. But 26-year-old Pritesh Mistry saw something else. He turned that waste into Bioleather, a vegan, PU/PVC-free alternative to animal leather. From discarded skins and seeds to shoes, bags, and even car interiors… his startup The Bio Company is already producing 5,000 meters a month. This is the kind of innovation I love: simple, local, and world-changing. Solving food waste and toxic tanning in one stroke. Sometimes the most powerful ideas are born in college projects. 🌱 #sustainability #circulareconomy #innovation #veganleather

Earlier this week, Principles for Responsible Investment published its latest guide: "Sustainability in supply chains: A guide for private markets investors." The guide offers insights to investors on how sustainability risks in supply chains can be assessed and managed, and how effective supply chain due diligence can directly create value. Yesterday, during a panel discussion at the 2025 Supply Chain Sustainability School (UK) Summit, we touched on this topic in the context of making sustainability data reporting 'work'. For those working in sustainability, particularly where limited legal frameworks currently exist, it's unfortunately not always enough to frame supply chain due diligence as "the right thing to do". The PRI report highlights that there is a sound business case in adopting robust supply chain due diligence methods. Some key takeaways include: ➡️ Strong ESG practices enhance brand reputation and open new market opportunities. ➡️ Early identification of risks (including carbon-intensive operations) cuts costs and improves efficiency. ➡️ Reducing supply chain risk boosts investor confidence, often enhancing valuations and lowering borrowing costs. ➡️ Increased supply chain resilience helps to protect businesses from geopolitical, regulatory and environmental shocks. While written for the investment community, the guide provides equally valuable insights for businesses embedding supply chain due diligence into their operations and the business case in doing so. I've attached a copy for those who might be interested in reading more.

Sustainability in procurement is not a ‘good-to-have’, but a strategic imperative, Especially in the MENA region. It is not only about preserving the region’s delicate ecosystems, But also about ensuring continuity of business and encouraging successful entrepreneurship for decades to come. With that in mind, here are three ways to seamlessly integrate sustainable practices into your procurement processes without making any major disruptions: ➡️ Educate Demystify sustainability. Most people’s concept of sustainability barely scratches the surface. Without a deep understanding of sustainability and how to procure accordingly, teams are woefully underequipped for an eventual transition. Encourage collaboration and open dialogue to build a shared commitment to sustainable practices. ➡️ Integrate Supplement your teams’ capabilities with access to technologies such as AI, green energy and materials, blockchain, and smart metrics that allow you to gather and analyse information in real-time. They help increase your efficiency, lower your carbon footprint and empower more thorough risk management. ➡️ Clarify Knowing what sustainability is, and having the tools to implement it won’t mean anything unless you have ways to measure your growth and progress. Discuss with your team how you want to measure sustainability and clarify your goals, KPIs, and metrics with them. Together, let's pave the way for a greener future in the MENA procurement landscape! What are some sustainability initiatives you’ve undertaken in your procurement functions? #Procurement #SupplyChain #Sustainability #BestAdvice

More than half of Salesforce’s most strategic suppliers — based on the amount the $38 billion software company spends on their goods and services — have agreed to cut their greenhouse gas emissions as part of binding provisions in their contracts. Those clauses are part of the Salesforce Sustainability Exhibit, introduced four years ago in May 2021 as an amendment to the company’s standard contact. Many large companies actively encourage suppliers to reduce emissions through science-based targets, and some offer educational resources and technical assistance to help. Salesforce remains unique in codifying those commitments as part of its procurement process, although customer service software company Zendesk — a Salesforce supplier — was inspired enough by the approach to introduce a similar set of contract clauses in November 2024. Best practices for companies interested in shaping similar programs: ➡️ Get procurement teams involved. They can help prioritize engagement and signal which suppliers might find new requirements difficult to meet. ➡️ Provide technical support. Many companies, especially smaller ones, will need an education on the concept of net zero. ➡️ Offer options. Allow suppliers to choose the emissions reduction path that makes the most sense for their business rather than dictating a one-size-fits all approach.  ➡️ Look for ways to support supplier investments. For example, a corporation could motivate supplier investments in renewable energy or lower-emissions materials through better procurement terms. Lessons from Salesforce’s unique contracting process: https://lnkd.in/eHZ7qGvm Cooper Wechkin Louisa McGuirk Serena Ingre Emily Damon Amy Garber

🌿 Appointing Nature to the Board: Modernising Corporate Governance 🌿 To avoid biodiversity becoming a buzzword in the boardroom and to fully address the combined climate and biodiversity emergencies, the full benefits of nature need to be recognised and its protection and recovery needs to become a business imperative. This is beginning to happen in the UK, as we’re witnessing a growing trend of ‘appointing nature to the board’ of directors. This innovative approach, pioneered by companies like Faith In Nature and House of Hackney symbolises a bold leap forward, embedding nature stewardship at the heart of corporate decision-making. 🚀 What’s Happening? Faith in Nature set the precedent by introducing a “Nature Guardian” role to its board, a concept aimed at ensuring the company’s operations positively impact the environment. This move, followed by others, reflects a growing commitment among businesses to prioritise the planet alongside profits. 🔍 Why It Matters? This initiative is more than a symbolic gesture; it’s about operationalising “nature-positive corporate governance.” By formally integrating environmental considerations into their business models, these companies are not just aligning with consumer and investor expectations but are also setting a new standard for corporate responsibility. 📈 Challenges & Opportunities While innovative, the concept faces challenges around enforceability, longevity, and the practicality of representing nature’s interests in corporate governance. Yet, it offers a promising avenue for incorporating specialised and traditional knowledge about nature into board decisions, potentially influencing broader and sustainability led industry practices. 🌱 Looking Forward The appointment of nature to the board signifies an opportunity for businesses to reevaluate their relationship with the environment. It’s a call to action for companies and I think we should applaud the trailblazers and encourage more businesses to consider how they can integrate such thinking and practices into their governance structures. Here’s some more detail relating to the pioneers: https://lnkd.in/epRasq3K #naturepositive #sustainability #corporategovernance #innovation #natureontheboard

Why is sustainable transport essential for greener cities and a better world? Global #transportation accounts for 25% of CO2 emissions worldwide. 91% of the energy used in motorised land, sea and air transport remains derived from #fossilfuels. Without major diversification towards clean and low-carbon transport, this figure is set to increase by nearly 60% by 2050. This is a particularly urgent issue in urban zones of the world. Our cities occupy just 3% of the Earth’s land, but drive between 60-80% of energy consumption and are responsible for a staggering 75% of global CO2 emissions. Cities are also the engines of the world’s economy and transport is vital to promote connectivity, trade and employment in our urban hubs. Therefore, we’re going to need to overhaul the way transport works and how our cities are built. We need transformation to make #sustainablemobility a reality.  The good news is that we do have solutions that exist, like #EVs and renewable aviation fuel. But we need to further accelerate change through a global concerted effort to support clean energy-powered mass transit systems, from electrifying our marine networks to railways. We also need to make our urban environments geared towards carbon-free travel with biking and walking lanes.  All of these actions will require not only new innovations, nature-positive city planning and financing, but indeed #collaboration across industries and borders to fully steer our societies towards a sustainable path.  As individuals, we can also take a stand by embracing car-free modes of transport and prioritise the planet in our daily travel decisions. Whether that means carpooling and opting for public transport to minimise traffic congestion, or choosing to join the #flygskam movement to go flight-free as much as possible. Every little bit counts.  As the United Nations has stated before: Sustainable transport is not an end in itself, but a means to achieve sustainable development. By making environmentally-friendly transportation widespread, accessible and affordable to all in cities and beyond, we move closer to reaching multiple goals—climate resilience, disaster mitigation, global net-zero, healthy breathable air, and inclusive human settlements. These interrelated targets are all laid out under #SDG9 and #SDG11.  #WorldSustainableTransportDay is celebrated annually to highlight the importance of green mobility, reminding us that we will only achieve our #GlobalGoals with clean transport systems. As UN Secretary-General António Guterres has emphasised, we have ‘no time to waste — let’s get moving’. With sustainable transport, we can pave the route towards a greener, healthier and more equitable world. #SDGs #SustainableTransport #WSTD