Building a sustainable supply chain as a company: Strategies and best practices

You have begun to address the sustainability of your business practices and take action to reduce your CO2 emissions. But does this also apply to your suppliers? If the companies from which you source your machines and raw materials are not sustainable, you may still be indirectly contributing to greenhouse gas emissions.

For many companies, sustainability is now an important requirement in procurement, and others are checking their suppliers for their environmental friendliness. Studies show that customers are looking for environmentally friendly companies. Therefore, the sustainability of a brand is more important than ever.

Industrial Activity in the Supply Chain

Schematic representation of industrial activities in the supply chain. The options for climate protection in the industrial sector are indicated by the circled numbers:

(1) Energy efficiency (e.g., through furnace insulation, process coupling, or increased material recycling);

(2) Emission reduction (e.g., by switching to non-fossil

(3a) Material efficiency in manufacturing (e.g., by reducing yield losses in cutting and stamping sheets or reusing old construction steel without melting);

(3b) Material efficiency in product design (e.g., by extending product lifespan, lightweight construction, or dematerialization);

(4) Product-service efficiency (e.g., through car sharing or increased building occupancy);

(5) Reduction of service demand (e.g., switching from private to public transport).

Source: IPCC