INSIGHTS
Strategic priorities in modern sustainability management
The landscape of sustainability management is undergoing a significant transformation, driven by technological advancements, increasing regulatory pressures and evolving stakeholder expectations. Our research has identified three key themes that are shaping the strategic priorities of sustainability leaders across various industries.
B. Technological enablement of sustainability efforts
4. Enhancing supply chain visibility and sustainability
Our supply chain accounts for about 80% of our carbon footprint. Everything from the equipment we purchase to the food and medicine we provide to patients is foundational.
Philip Tamuno
JOINT HEAD OF SUSTAINABILITY, BARKING, HAVERING AND REDBRIDGE UNIVERSITY HOSPITALS NHS TRUST
While organisations have made significant progress in managing their direct emissions (Scope 1 and 2), the greater challenge lies in addressing Scope 3 emissions throughout their supply chains. Understanding not just who suppliers are but where they operate globally has become crucial for assessing both immediate environmental impact and longer-term sustainability risks.
The scale of this challenge is starkly illustrated by Philip Tamuno from Barking, Havering and Redbridge University Hospitals NHS Trust: "Our supply chain accounts for about 80% of our carbon footprint. Everything from the equipment we purchase to the food and medicine we provide to patients is foundational." This underscores the urgent need for enhanced visibility and management of supply chain sustainability.
In the manufacturing sector, the impact of supply chains on overall emissions is equally significant. "Our direct operations, scope one and two emissions, account for only 8% of our carbon footprint. The remaining 92% come from our supply chain," reveals Ethan O'Brien from Klöckner Pentaplast. This disproportionate impact highlights the critical importance of engaging with suppliers on sustainability issues.
Despite the lack of perfect data we need to focus on action, use the information, tools and expertise that is available. We need to move our mindset from disclosure & accounting to actual reduction & action mode.
Anna Richardson
ESG LEADER
Proactive collaboration with suppliers is key to improving supply chain sustainability. Michael Parkin from Briggs Equipment shares their approach: "We're addressing this by adapting our procurement policies to be more stringent with new suppliers. We're also working on improving our data collection and verification processes." This strategy aims to ensure that suppliers align with the organisation's sustainability goals.
The development of sustainable procurement guides is one way organisations are tackling this challenge. Philip Tamuno explains: "We're currently developing a sustainable procurement guide in collaboration with our procurement team. This guide will be tailored to each of our major procurement activities, making it simple and relevant."
Despite the challenges, Anna Richardson, formerly of GSK, advocates for a proactive approach: "Despite the lack of perfect data we need to focus on action, use the information, tools and expertise that is available. We need to move our mindset from disclosure & accounting to actual reduction & action mode."
We're addressing this by adapting our procurement policies to be more stringent with new suppliers. We're also working on improving our data collection and verification processes. It's an ongoing challenge, but it's crucial for ensuring that our solutions meet both our and our customers' sustainability needs.
Michael Parkin
HEAD OF SUSTAINABILITY AND SOLUTIONS, BRIGGS EQUIPMENT
Government procurement presents unique opportunities for driving supply chain sustainability. "It's estimated that 40% of global cement demand and 25% of steel demand comes from public procurement worldwide," notes Hariom Newport from the IPA. "We're working on several initiatives to leverage this buying power to drive sustainability, including the '5 Client Carbon Commitments', where major public sector infrastructure clients commit to using lower-carbon rated concrete and steel over a publicly disclosed timeline."
Technology plays a crucial role in enhancing supply chain visibility. Carl Brooks from CBRE highlights their use of specialised platforms: "We also work with sector specialists including EcoVadis and EmitWise to gain deeper insights into our supply chain emissions and enhance our ability to report on a wider range of emerging sustainability issues."
It's estimated that 40% of global cement demand and 25% of steel demand comes from public procurement worldwide. We're working on several initiatives to leverage this buying power to drive sustainability, including the '5 Client Carbon Commitments', where major public sector infrastructure clients commit to using lower-carbon rated concrete and steel over a publicly disclosed timeline.
Hariom Newport
HEAD OF ENVIRONMENT & SUSTAINABILITY, INFRASTRUCTURE AND PROJECTS AUTHORITY (IPA)
The challenge of supply chain sustainability extends far beyond simple supplier management. As organisations deepen their understanding of Scope 3 emissions, they're discovering that geographical location plays a crucial role in risk assessment and mitigation strategies. Success requires a multi-faceted approach: combining technological solutions for emissions tracking, closer supplier collaboration, and sophisticated geographical risk analysis. Those taking decisive action now—through enhanced procurement processes, detailed supplier mapping, and robust data collection—are better positioned to build resilient and sustainable supply chains for the future.
