26 Feb 2024
by Craig Minter

Achieving Net Zero: effective supply chain engagement and collaboration

For many organisations around 60-90% of their carbon footprint comes from their supply chain. In order to significantly improve the sustainability of supply chains, businesses must work collaboratively to understand the environmental impact of procurement decisions, and collectively reduce emissions.

Fighting Climate Change- Effective Stewardship of the Environment

For many organisations around 60-90% of their carbon footprint comes from their supply chain. In order to significantly improve the sustainability of supply chains, businesses must work collaboratively to understand the environmental impact of procurement decisions, and collectively reduce emissions.

To do what is needed, businesses need improved access to more reliable data, as well as much greater collaboration with suppliers throughout the supply chain ecosystem. There are four critical steps to achieving both of these objectives.

Creating a shared value approach

We recently conducted a supplier survey which found that people were more willing to share data when they believe it will benefit society, when they understand how the data will be used, and when the data-sharing processes are easy. Incorporating these principles into supply chain engagement initiatives can lead to better results in reducing Scope 3 emissions and achieving Net Zero goals. These shared values create both economic value but also value for society, for example:

  • Identification of the benefits of data collection can contribute to core business objectives, such as supply chain resilience and cost reduction.
  •  Collaboration between organisations with similar regulatory requirements can create a more joined-up view of value chain emissions.
  • Customer satisfaction can be improved by incorporating sustainability data provision into Net Promoter Score (NPS) surveys
  • Increased knowledge of sustainable outcomes to promote a reduction in energy usage can also make financial savings.

Taking a human-centred design approach to supply chain sustainability will help organisations understand both the barriers and drivers for data sharing. This understanding will allow businesses to create initiatives that benefit everyone and ensure data-sharing processes are effective in mitigating our collective environmental impact.

Engage SMEs through awareness and support

Despite increasing regulatory pressure, lack of accurate and complete data impacts large organisations subject to regulations such as Streamlined Energy and Carbon Reporting (SECR), with SMEs facing less regulatory burden. Add to this the fact that only 53% of UK SMEs had sustainability plans in place, according to a 2021 poll - and that most businesses' supply chains will include SMEs, the need for a supply chain sustainability approach that delivers shared value is critical.

In order to benefit from innovation, efficiency, cost savings and enhanced brand reputation, it is important for all parties involved in procurement and supply to collaborate closely on environmental matters. Sharing insights and best practice is one way in which sustainability experts on the procurement side could educate and support non-experts on the supply side.

Engagement should focus on creating a mutual understanding of sustainability risks and impacts. Buyers can provide value by sharing sustainability expertise and offering training or consulting to suppliers.

Engagement at all levels, rather than just at the board level, is important for success. Everyone can have an impact and should be empowered to believe that they can provide positive results. Raising awareness can also help suppliers identify missed opportunities for improving sustainability, such as the ability to use the data the customer wants, to engage employees and incorporate it into marketing and sales material.

Transparent communication to build trust Transparency in communication is a cornerstone of building trust, enhancing reputation and ensuring accountability. Achieving this requires collaborative efforts among all stakeholders to develop data-driven strategic plans which incorporates the objectives and priorities of the different suppliers. Regular communication to stakeholders is key to ensuring accountability as well as managing performance against the roadmap.

To build trust, businesses need to be transparent about how they collect and use data. This transparency is especially important when working with suppliers who might be reluctant to share data if there are concerns about the potential negative impact on their selection. For businesses with limited knowledge in this area may need help to provide accurate data and insights.

The key lies in establishing clear channels of communication, sharing best practices and collaboration can lead to continuous improvements in emission outputs, both for suppliers and buyers.

Make it easy with technology

The collation of supply chain sustainability data is a complex task, with only 38% of businesses calculating their supply chain footprint, and a substantial portion of these relying on overly manual data collection processes.

There are no universal standards for sustainability accounting, causing suppliers to complete numerous different disclosures. By understanding suppliers’ needs and using automation technologies, businesses can improve data collection processes. And as the technologies improve there is opportunity to make processes even more efficient.

Reporting tools like dashboard systems can provide valuable insights and track progress towards sustainability goals, providing a future of industry-led benchmarking, which businesses can work towards as they mature in the process.

Designing a sustainable supply chain programme that incorporates these four considerations will help businesses improve access to better quality data, enabling them to take more informed action on sustainability towards their Net Zero goals.

Collecting and using data will help organisations defend against greenwashing claims, support the development of sustainability and business opportunities, improve supplier relationships and provide valuable insights for all parties involved.

For more information about Sopra Steria's data-driven, human-centred and technology-backed approaches to Sustainability, reach out to Craig at [email protected]


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Heather Cover-Kus

Heather Cover-Kus

Head of Central Government Programme, techUK

Heather is Head of Central Government Programme at techUK, working to represent the supplier community of tech products and services to Central Government.

Prior to joining techUK in April 2022, Heather worked in the Economic Policy and Small States Section at the Commonwealth Secretariat.  She led the organisation’s FinTech programme and worked to create an enabling environment for developing countries to take advantage of the socio-economic benefits of FinTech.

Before moving to the UK, Heather worked at the Office of the Prime Minister of The Bahamas and the Central Bank of The Bahamas.

Heather holds a Graduate Diploma in Law from BPP, a Masters in Public Administration (MPA) from LSE, and a BA in Economics and Sociology from Macalester College.

Email:
[email protected]
LinkedIn:
https://www.linkedin.com/in/heather-cover-kus-ba636538

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Ellie Huckle

Ellie Huckle

Programme Manager, Central Government, techUK

Ellie joined techUK in March 2018 as a Programme Assistant to the Public Sector team and now works as a Programme Manager for the Central Government Programme.

The programme represents the supplier community of technology products and services in Central Government – in summary working to make Government a more informed buyer, increasing supplier visibility in order to improve their chances of supplying to Government Departments, and fostering better engagement between the public sector and industry. To find out more about what we do, how we do this and how you can get involved – make sure to get in touch!

Prior to joining techUK, Ellie completed Sixth Form in June 2015 and went on to work in Waitrose, moved on swiftly to walking dogs and finally, got an office job working for a small local business in North London, where she lives with her family and their two Bengal cats Kai and Nova.

When she isn’t working Ellie likes to spend time with her family and friends, her cats, and enjoys volunteering for diabetes charities. She has a keen interest in writing, escaping with a good book and expanding her knowledge watching far too many quiz shows!

Email:
[email protected]
Phone:
020 7331 2015
Twitter:
@techUK,@techUK
Website:
www.techuk.org,www.techuk.org
LinkedIn:
https://bit.ly/3mtQ7Jx,https://bit.ly/3mtQ7Jx

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Annie Collings

Annie Collings

Programme Manager, Cyber Security and Central Government, techUK

Annie joined techUK as the Programme Manager for Cyber Security and Central Government in September 2023.

Prior to joining techUK, Annie worked as an Account Manager at PLMR Healthcomms, a specialist healthcare agency providing public affairs support to a wide range of medical technology clients. Annie also spent time as an Intern in an MPs constituency office and as an Intern at the Association of Independent Professionals and the Self-Employed. 

Annie graduated from Nottingham Trent University, where she was an active member of the lacrosse society. 

Email:
[email protected]
Twitter:
anniecollings24
LinkedIn:
https://www.linkedin.com/in/annie-collings-270150158/

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Ella Gago-Brookes

Ella Gago-Brookes

Team Assistant, Markets, techUK

Ella joined techUK in November 2023 as a Markets Team Assistant, supporting the Justice and Emergency Services, Central Government and Financial Services Programmes.  

Before joining the team, she was working at the Magistrates' Courts in legal administration and graduated from the University of Liverpool in 2022.  Ella attained an undergraduate degree in History and Politics, and a master's degree in International Relations and Security Studies, with a particular interest in studying asylum rights and gendered violence.  

In her spare time she enjoys going to the gym, watching true crime documentaries, travelling, and making her best attempts to become a better cook.  

Email:
[email protected]

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Authors

Craig Minter

Craig Minter

Senior Sustainability Consultant, Sopra Steria