Supply chain News and trends

Salesforce recently released a study that reveals a large majority of executives think sustainability is key to their organizations’ success, but only about a third consider their business to have effectively adopted sustainable operations in practice.

The study, conducted in partnership with GlobeScan, surveyed 200 sustainability, finance, and technology professionals, including 76 C-suite executives from the United States, Europe, and Asia. The study identified a major gap between ambition and realistic action — while 93% of these executives highly value sustainability in terms of their business’ success, only 37% find it to be well-integrated into their business.

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New research from the Sustainable Hospitality Alliance finds a growing market opportunity for sustainable travel, with more world travelers saying they are influenced by green factors.

The report showed that while price remained the leading factor in travelers’ decisions about where to stay, sustainability is growing in importance — a trend that is likely to accelerate as younger travelers grow more dominant in the market.

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In a report, Schneider Electric found that one-third of Singaporean business leaders are digital sustainability leaders as they strongly support digitalisation as a key driver for sustainability goals.

Meanwhile, 59% are Digital Sustainability Adopters as they do not believe in pursuing digitalisation as strongly, and 7% are sceptics since they disagree or are unsure of digitalisation in supporting sustainability.

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The new sustainability roadmap presented by non-profit Better Cotton has received attention from those attending Uzbekistan's Tashkent Textile Week, including business, government, civil society, international organisations, and educational institutes.

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The obligation to comply with supply chain regulations from the EU Supply Chain Act to a draft of US supply chain due diligence laws is spurring firms to rethink sourcing, supply chain, manufacturing policies, and supporting applications. In addition, the US and the EU alone are currently spending $1.4 trillion on environmental sustainability and climate adaptation. There’s also $17.5 billion in VC funding for green tech, and the global market for green financial instruments is $658 billion. These regulatory and investment initiatives provide your firm with opportunities to reassess your supply chain to focus on enhancing sustainability of critical processes such as monitoring supplier labor practices and diversifying supplier geographical risk. 

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Climate change ranks as a top priority for C-level executives (CxOs) in Deloitte’s latest survey, with 75% reporting that their organizations increased sustainability investments over the past year in spite of economic and geopolitical uncertainties.

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Online retailer Shein plans to cut emissions across its supply chain by 25% by 2030, the company announced in September.

The targets are among the first public steps to cut carbon emissions for the company, which has become a formidable player in the U.S. fast fashion market. The growth has come with a heavy carbon footprint. Last year, Shein’s operations produced 6.3 million tons of carbon dioxide emissions.

“Today we’re taking a significant step forward, announcing a new set of 2030 goals that will help us accomplish emissions reduction targets for our entire supply chain over the next seven years,” said Adam Whinston, global head of ESG at Shein.

As part of its efforts, Shein set a series of sustainability goals using 2021 data as a benchmark, compiled as a greenhouse gas emissions inventory with the help of certification company Interek. The retailer outlined reduction targets for each emissions level, which includes working with hundreds of suppliers to implement greener practices.

BY THE NUMBERS: SHEIN’S EMISSIONS GOALS
  42% - Percent by which Shein aims to reduce its scope 1, owned-operations emissions by 2030
  500 - The number of partner facilities Shein and the Apparel Impact Institute will work with to implement energy-savings programs, as part of its scope 3 emissions targets
  25% - The percent by which Shein aims to reduce its scope 3 emissions by 2030

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The voluntary guidelines, published by the BRC, outline the steps retailers can take to adhere to circular economy principles. By following this circular model, the BRC says retailers will further the progress they have already made to lengthen the lifecycle of the products they buy.

As part of the guidelines, it explains clothing, footwear, homeware textiles, and other items, retailers can promote resale markets and platforms; use hire and rental subscription services; and offer product swaps, upcycling and repair schemes, instead of throwing away items.

The guidelines also emphasise the importance of quality checks, which “clearly informs” the customer of the item’s condition. They also clarify that its aim is not to promote the circulation of perfect items, but rather to circulate all items, “safe in the knowledge” that both buyer and seller have the same level of information and expectation of their condition.

Retailers recognise the role they can play in helping their customers shop in more environmentally friendly ways.

The UK trade association explains that its long-term goal is to limit, and ultimately end, the sending of items to landfill unnecessarily and to keep them in circulation for longer so that they can be used and loved by more people.

The BRC says it is already working with retailers on their journey to Net Zero through their Climate Action Roadmap. Supported by over 80 major retailers, it is the Retail Industry’s commitment to reduce industry and supply chain carbon emissions to zero by 2040.

Chief Executive of the BRC, Helen Dickinson OBE, said: “We are delighted to launch our first voluntary Guideline on second-hand and preloved items. With more people looking for ways to shop sustainably, particularly as the cost of living rises, the sale of second-hand items in-store and online can encourage sustainable behaviours at affordable prices and take us one step further towards a circular economy.

“Retailers recognise the role they can play in helping their customers shop in more environmentally friendly ways, and we hope that this Guideline will help many on their sustainability journey.”

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Sustainability through Innovation.
Continuously enhancing driving pleasure and ambitious sustainability targets define the work of the BMW Group in shaping the individual mobility of the future. The company firmly believes that innovation is the key to progress in both areas. With more than 100 years of experience and extensive technological expertise, the BMW Group is rising to the challenge of developing attractive mobility solutions in harmony with climate protection, resource conservation, quality of life in urban environments and social responsibility. As part of the “Sustainability through Innovation 2022” event, the company is presenting a wide range of groundbreaking technologies, concepts and strategies that illustrate how innovative strength and visionary thinking can generate momentum for sustainable mobility.

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Sustainability often comes at a price, but despite inflation and other global disruptions, many Americans are open to shopping sustainability. Among those surveyed, 68% indicated they would pay more for sustainable products. This increased from 56% in 2020 to 47% in 2019. Gen Z stood out again when it came to spending and reported that they were the most likely to pay up to 100% more for a sustainable product.

Related to cost is also where consumers are shopping. Sustainability is driving consumers to change the brands they shop from based on whether they make sustainable offerings. 50% of U.S. consumers have changed where they purchased goods in the past year, and 14% are purchasing from businesses with sustainable practices.

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Coca-Cola Europacific Partners (CCEP) has announced that it has established a sustainability-linked supply chain finance programme in association with Rabobank.

Rabobank will provide funding to the programme, with other banks expected to participate and expand the facility over time, CCEP added.

CCEP’s vice-president of procurement, Ralf Peters, said, “We know how crucial it is that we work together with our suppliers to decarbonise our businesses, and are committed to providing the support and solutions they need to help them reduce emissions, aligned with our own sustainability goals.

“Our new supply chain finance programme is another important step that will help us to take collective action – by implementing positive and impactful change and driving continuous sustainability improvements.”

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Sustainability is no longer a nice-to-have option when running a business. Rather, it’s becoming an essential corporate responsibility and a smart business in its own right. For a business setting out to develop a sustainability strategy or even define sustainability goals specific to their business, it can nonetheless be intimidating.

For many businesses, the process begins with identifying a goal suited to their particular business, such as eliminating waste. Then identifying metrics to measure the goal and a strategy to reach those metrics begins to unfold.

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Heavy equipment users have a new tool from Volvo Construction Equipment to help with carbon reduction goals tailored to their operations.

The CO2 Reduction Program is designed to be integrated into an organization’s operational plans and offers insights, analysis, improvement possibilities and sustainability targets while working toward carbon neutrality. The approach will be designed specifically to each user’s goals and operations.

The program will start by analyzing where an organization stands on its carbon emissions to establish a baseline for making improvements. It will use data from connected machines to determine the carbon footprint for all machines, regardless of brand, that are in use. Volvo CE says this will help users visualize the impact of carbon reduction changes over time.

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The report, which includes a survey of 1,000 business leaders, looks at nine countries, including the United States, China, Britain and Spain, focusing on the energy, technology, infrastructure, transport and logistics sectors.

It defines green skills as "the knowledge, competencies, values and attributes needed to develop and support a sustainable, low-carbon and resource-efficient society", be it via technical skills, such as installing solar panels, or broader practices like corporate sustainability reporting.

While a vast majority of business leaders surveyed see skills as the main driver of the green transition, only 55% of them have put in place, or plan to, programmes for their workers to get these skills.

"This leaves a large fraction of the workforce without crucial skills training, which risks obstructing progress in the green transition," said the report.

Overall, 62% of respondents expect such bottlenecks to delay the transition, and many respondents want governments to pitch in with grants or tax relief for companies investing in green skill programmes, as well as funding for educational courses.

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Nine out of 10 business leaders across Europe plan to maintain or increase their sustainability-linked investments by 2026, a survey by German business software maker SAP (SAPG.DE) said on Wednesday.

Factors driving action included the need to meet board environmental commitments, with 40%; a desire to boost the way the company is viewed by society, 39%; a chance to develop new products, 38%; and to boost revenues and profit, 37%.

Edward Manderson, lecturer in environmental economics at the University of Manchester, said he had been "surprised" at how widespread the view was that "taking sustainability action improves profitability".

In its annual study, SAP surveyed 1,702 European business leaders to cast a light on the challenges companies face to advance their sustainability plans as Europe seeks to become carbon neutral by 2050.

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The EU Corporate Sustainability Due Diligence Directive (CSDDD) fits in the trend of emerging sustainability regulations across the globe.

Despite uncertainty over the scope of the directive and the final text to be agreed by the EU lawmakers, companies and institutions should start thinking about testing their current compliance programmes and policies and how, if necessary, they can amend them.

It will be important to monitor legislative developments closely and to start making all possible preparations for the eventual implementation of the CSDDD.

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Micronclean’s new "Environmental and Sustainability Strategy" has been published on its website. This document sets Micronclean’s ambition to be ‘the most sustainable specialist textile and cleanroom consumable business on the  planet' under the three central pillars: Our Climate, Creating our Circular Economy and Our People and Communities. 

Our Climate is focussed on the pathway to net zero through the introduction of renewable technologies and the removal of fossil  fuel-based assets.

Creating our circular economy is all about systems, ensuring focus on  eliminating waste from processes by ensuring sustainable decision making is applied throughout the life cycle. 

Our People and Communities is the heart of the company's plan, and focuses on wellbeing and Micronclean's "Equality, Inclusion and Diversity Strategy" including a passion to improve biodiversity. 

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Companies in the United States are beginning to shift from commitment to action when it comes to environmental, social, and governance (ESG) issues to address stakeholder concerns and pending regulations, according to a report from Deloitte.

Businesses are taking that next step by implementing working groups and staff led by executives such as chief sustainability officers, chief financial officers, and chief strategy officers. They are investing in new technologies and data, and nailing down accurate reporting. Nearly 100% of the companies that responded to the Deloitte survey said they were going to invest in new technologies and other tools throughout the next year, as access to quality data and overall ESG preparedness can also create value and help address growing stakeholder demands.

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More than 50 percent of fashion decision-makers say traceability will be a top-five enabler to reduce emissions in their supply chains, according to BoF and McKinsey & Co’s State of Fashion: Technology report. It is an essential tool to meet consumer and shareholder expectations around improving sustainability endeavours.

Technology platform FibreTrace offers real-time verification of products as they move through the global supply chain.

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Sustainability has become a top priority for many consumers, and retailers are responding. A Deloitte report showed that 55% of consumers surveyed recently bought a sustainable product or service. In response to growing demand for eco-friendly products, retailers are trying to reduce their impact on the environment. They’re working to combat the effects of climate change, reduce waste, and eliminate their carbon footprint.

The sustainability trends for 2023 go beyond eco-friendliness, however. They also include measures aimed at improving working conditions and employee well-being.
In order to meet these sweeping goals, companies rely on data and technology.

Sustainability trends 2023 reshaping retail
The United Nations World Commission on Environment and Development defined sustainable development as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

In other words, it’s a way to preserve resources, care about the environment, and build a better, safer reality for all.

Here’s our breakdown of some of the biggest sustainability trends impacting retail in 2023:
1. Greater transparency, increased regulation
2. Focus on improving delivery to reduce the carbon footprint
3. Rise of the circular economy
4. Eco-friendly, fair workplaces
5. Ethical supply chain
6. Growing role of data and AI in sustainability efforts
7. Reliance on cloud technology

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There are signs of a disconnect between consumers and retailers when it comes to sustainability.

A recent report has found that two-thirds of consumers are willing to pay more for sustainable products than retailers expect — and reveals that consumer preference for recommerce models is also being underserved.

Further reinforcing this misalignment is the finding that only half of the senior retailer executives surveyed believe sustainability to be an important purchase consideration for consumers — a stark contrast to the three-quarters of consumers saying it is “somewhat” or “very important” to them.

Where the two sides do meet is with nearly all the senior retail executives agreeing that today’s consumer expects retailers to operate in a more sustainable way.

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The European Cocoa Association (ECA) and the Association of Chocolate, Biscuit and Confectionery Industries of Europe (CAOBISCO) are on track to deliver access to cocoa marketing agencies’ farming data that the Associations’ Members have collected over the years.

According to the organizations, this data collection effort should feed into a combined database owned and driven by producing countries, in compliance with EU and national data privacy legislation, to achieve a robust nationwide traceability system.

Speaking to FoodIngedientsFirst, Christiaan Prins, chairman of the European Cocoa Association Sustainability Working Group, says farm data collection is crucial to building a sustainable cocoa supply chain. 

“Understanding where cocoa is farmed is a precondition to prevent cocoa from being sourced from protected or deforested areas. In addition, farm data allows companies to support cocoa farmers with tailor-made development plans for their farms. Combining the data from different companies with cocoa origin government-owned data will greatly add to the transparency of the cocoa supply chain.”

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Sustainability has dominated headlines in recent years. The conversations surrounding global warming and reducing our carbon footprint are becoming more heavily discussed as the urgency increases.

As many individuals search for ways to live more sustainably, companies face greater calls for action on climate change. Over half of consumers in the UK reportedly believe that companies should start acting on climate change immediately. Slowly but surely, this demand is being met as many companies begin implementing ways of operating more sustainably and taking steps towards becoming greener businesses.

There are several reasons why more modern-day companies especially in the IoT space, are starting to go green.

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An “action staircase” of procurement practices has been identified to help organisations improvement sustainability credentials.

The staircase was drawn from the results of a survey by the MIT Centre for Transportation and Logistics, which ranked the results from most common to a “peak” of the most rare, to provide a clear journey for procurement teams.

The report said there was an increasing gap between companies’ investments in supply chain sustainability and their stated goals, despite intensifying pressure from investors and corporate buyers to improve sustainability.

“At the bottom of the staircase are the practices most commonly implemented, and at the top are those least so,” the report said. “In general, anyone looking to assess their next supply chain sustainability investment can look at which stair they find themselves on now to see what typically comes next – or which earlier steps their organisation may have overlooked.

“Interestingly, all paths lead upward and are mostly convergent… The ‘peak’ includes initiatives and technologies most firms as yet consider aspirational or those only on the radar of firms that are particularly aggressive about their supply chain sustainability efforts.”

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