Sustainability Science

Tesla released interesting and rare details about its approach to sourcing lithium, nickel, and cobalt directly from mines instead of through its cell suppliers. This approach is going to be critical as companies fight to secure those minerals for battery production to support electric vehicle growth.


While Tesla sources the vast majority of its battery cells from suppliers, it actually sources a large part of the materials used to build those batteries directly from mines.

This approach enables Tesla to have direct relationships with miners of critical minerals and helps secure supply while allowing the company to monitor quality closely and ensure responsible environmental and social sourcing.

BMW Group has announced it is to begin sourcing aluminium produced using solar electricity with immediate effect in a move that could deliver significant reductions to its supply chain emissions.

The global supply chains are under huge pressure as Covid -19 has created 'manufacturing deserts' due to the lockdown conditions in various countries and manufacturing output will take at least 12 months to recover to 2019 levels, a report says.
 
According to a new report from Baker McKenzie and Oxford Economics, Beyond COVID 19: Supply Chain Resilience Holds Key to Recovery, the pandemic has produced an unprecedented global supply chain crisis, stemming from a lack of mapping and flexibility around the multiple layers of global supply chains and a lack of diversification in sourcing strategies. 

Suppliers displaying environmental leadership are more competitive in other performance areas than those not doing so, reported 95% of CDP supply chain members, representing $3.6 trillion in procurement spend, in the nonprofit's latest report.

Our research shows that labor rights issues are present in renewable energy supply chains, including in the manufacturing of solar panels and the cultivation of palm oil and sugarcane used in biofuels. Looking further down the value chain, the rights of vulnerable communities can also be put at risk by major renewables projects developed on their land. So, while one side of the green revolution offers critical sustainability benefits, the image and reputation of energy operators, investors and end users can also be highly exposed to human rights issues that could cast a shadow over the sector’s socially responsible credentials.

The group, which operates 4,500 locations around the world, has committed to making its supply chain more sustainable and environmentally-friendly by reducing food waste and transport emissions. The installation of these gardens ties in with overall company aims to boost food traceability, reduce food waste from its restaurants by 30% by 2020, and to reduce the environmental footprint of its produce supply chain. This forms part of the company’s Planet 21 sustainability strategy. In 2012, AccorHotels set targets for 2020 in the areas of eco-design, energy efficiency, water stewardship and sustainably sourced food.

By sourcing domestically, you will be able to easily get in touch with suppliers and other key stakeholders. You will also be able to go to site in person and deal with any supply chain issues. This way, if there are any disruptions along the supply chain you will be able to identify them quickly and resolve them efficiently. Being able to do so is invaluable when it comes to keeping your customers informed and happy.

Sadly, instead of increased transparency and commitments, fashion CEOs are hiding behind greenwashed PR campaigns, like the disappointing announcement made by Levi’s, Gap, Guess, Wrangler, and Lee at a New York climate week event this past autumn. CEOs of the world’s famous denim brands said they would announce climate targets in two years, a deadline far longer than necessary to complete a basic step. While these CEOs continue to delay the climate commitment process, denim supply chains are continuing to pump carbon dioxide into the atmosphere without recourse.

It’s not the number alone that matters; it’s the combination of the quantitative number and the accompanying qualitative narrative that provides the full picture.

However, the company also offered something of an olive branch to IOI Group, confirming it would work with IOI, NGOs and other relevant stakeholders to "address and remediate the proven complaints and to demonstrate its commitment to fundamentally and transparently change the way it drives sustainable palm oil development to meet the highest social and environmental standards".

Following Walmart CEO’s commitment to sourcing 20 key commodities more sustainably by 2025, the nationwide superstore has shifted its focus to beef.

CEO Doug McMillon addressed that the chain aims to to source beef products more sustainably by 2025. With main priorities being soil health, animal welfare and responsible use of antibiotics. 

McMillon also stated that the company will focus on transparency, new partnerships and collaboration with customers and suppliers.

The Wall Street Journal (WSJ) recently reported that the world’s largest food and beverage company, Nestlé, has stopped buying Cargill’s Brazilian soy because of concerns about the link to deforestation.

Oritain, a product and supply chain traceability specialist, has now mapped all Supima cotton growing regions with the aim of tackling fraud in the global cotton supply chain and enabling the first true authentication of premium cotton fiber.

ENGIE Resources announced that it has now supplied enough Green-e® certified renewable energy certificates (RECs) to displace the estimated greenhouse gas emissions of more than 1 million passenger vehicles driven for a year. A REC is created when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource.

Ikea aims to be entirely using renewable and recycled materials in its products by 2030. The company hopes that this could help reduce its environmental footprint by 80 per cent by 2030 compared with 2016.

In spite of alternatives such as guayule and Russian dandelion, the Hevea brasiliensis tree will remain an important source of rubber for tyre manufacturers. The Goodyear Tire & Rubber Company recognises this and has announced a new natural rubber procurement policy. The tyre maker says this new policy “reflects its strong commitment to the responsible sourcing of raw materials” and believes its implementation and adherence will help address deforestation, land grabbing, and human rights in the areas of the world where natural rubber is produced.

Clearly, 3-D printing is on the move. But don’t get too carried away and expect it to replace established manufacturing techniques. Don’t look for all manufacturing to shift to retail stores, to parcel delivery depots or to your home or mine. Instead, 3-D will supplement current manufacturing at various supply chain nodes in some key segments.

Reps from Greenpeace and the United Food and Commercial Workers union explain why those organizations are driving a recent campaign against Walmart over worker wellbeing up and down the supply chain.