{"id":1900,"date":"2021-03-25T16:36:34","date_gmt":"2021-03-25T15:36:34","guid":{"rendered":"https:\/\/ecochain.com\/blogs\/finding-sustainable-suppliers\/"},"modified":"2025-11-10T10:57:36","modified_gmt":"2025-11-10T10:57:36","slug":"finding-sustainable-suppliers","status":"publish","type":"post","link":"https:\/\/ecochain.com\/nl\/blog\/finding-sustainable-suppliers\/","title":{"rendered":"5 Steps to Get Suppliers On Board With Sustainability"},"content":{"rendered":"<p>It has become clear that the role of supply chains on companies\u2019 environmental impact is often very high. Up to a point, where <strong>90%<\/strong> of your total environmental footprint can occur in said supply chains.<\/p>\n<p>This impact percentage from your supply chain might seem impressive \u2013 but it also opens up many opportunities for substantial impact reduction.<\/p>\n<p>This makes the role of procurement an important aspect in reducing your products\u2019 impact.<\/p>\n<ul>\n<li>Are the products that I am shipping actually sustainable?<\/li>\n<\/ul>\n<ul>\n<li>Are the manufacturers of the materials\/ ingredients I use in my production process sustainable?<\/li>\n<\/ul>\n<ul>\n<li>Should I have a better look at my key suppliers?<\/li>\n<\/ul>\n<h2><strong>Step 1: Measure your supply chain\u2019s baseline performance.<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">When it comes to measuring the environmental footprint (a Life Cycle Assessment or LCA) of a product or portfolio, a footprint can be split up into three categories (we follow the same categorisation for LCA footprint results as the GHG Protocol with GHG emissions): <\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"><strong>Scope 1: <\/strong>direct emissions from your own controlled sources;<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Scope 2: <\/strong>indirect emissions from purchased energy;<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><strong>Scope 3:<\/strong> all other indirect upstream and downstream emissions that are not owned\/not directly controlled by your company.\u00a0<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/ecochain.com\/blog\/measuring-managing-scope-3-environmental-impact\/\" target=\"_blank\" rel=\"noopener\">Scope 3 emissions<\/a> often account for the biggest contribution to your overall environmental impact (up to 90%). A big chunk coming from the supply chain of the company. So, although you do not directly own or control these emissions- they are <\/span><span style=\"font-weight: 400;\">highly connected to your company\u2019s activities<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-12354\" src=\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/scope_3_resource_image.png\" sizes=\"(max-width: 637px) 100vw, 637px\" srcset=\"\" alt=\"scope 1, 2, and 3\" width=\"637\" height=\"408\" \/><figcaption>Image 1. Overview of scope 1, 2, and 3 emissions (according to the GHG Protocol)<\/figcaption><\/figure>\n<h3>Measuring your first LCA<\/h3>\n<p><span style=\"font-weight: 400;\">Before you start finding\/engaging with sustainable suppliers- it\u2019s advised <strong>to first map out all the processes in your supply chain and list your suppliers per step.<\/strong> This process is included in the\u00a0 data collection<\/span><span style=\"font-weight: 400;\"> in measuring an LCA- it\u2019s called a Life Cycle Inventory. Once you\u2019ve done the mapping, you <\/span><span style=\"font-weight: 400;\">measure your product(s)\u2019 complete footprint with a product or portfolio tool \u2013 which includes your supply chain\u2019s baseline environmental performance<\/span><span style=\"font-weight: 400;\"> (<a href=\"https:\/\/ecochain.com\/\" target=\"_blank\" rel=\"noopener\">Check out our product footprint tool Ecochain<\/a>).\u00a0 <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Usually, this first LCA calculation is based on already existing (average) environmental background data on supply chains. In LCA terms we call this \u2018secondary data\u2019. It allows you to make a first LCA with clear impact hotspots, <\/span><span style=\"font-weight: 400;\">without having to really dive into your raw supply chain data yet.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having these initial hotspot results, ensures efficiency and transparency in knowing which suppliers to focus your efforts on. It prevents miscommunication and <strong>inefficient impact<\/strong> <strong>reduction efforts based on loose assumptions<\/strong>.<\/span><\/p>\n<p>How do you interpret these hotspots?<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" class=\"wp-image-10478\" src=\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/Schermafbeelding-2020-12-22-om-12.56.07.png\" sizes=\"(max-width: 443px) 100vw, 443px\" srcset=\"\" alt=\"\" width=\"443\" height=\"477\" \/><figcaption>Image 2. Your baseline measurements for scope 1, 2, and 3. Here we see that scope 3 emissions (yellow) count for the biggest impact. \u2013<em> Screenshot from our product portfolio tool Ecochain<strong>.<\/strong><\/em><\/figcaption><\/figure>\n<h2><strong>Step 2: Find the environmental hotspots in your supply chain and connect them to specific suppliers.<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Once you mapped out your supply chain, you have an overview of the environmental impact per-process in your supply chain (image 2). Meaning, you can start looking for the <\/span><b>environmental hotspots within your supply chain<\/b><span style=\"font-weight: 400;\">. Which process(es) accounts for the biggest impact? Could it be the raw materials for the production of your product?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can connect your hotspot results to the suppliers within these processes. It\u2019s often the case, that just <\/span><b>a small number of suppliers can be responsible for the largest impact<\/b><span style=\"font-weight: 400;\"> in your supply chain\u2019s impact.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, why is this the case? Is it their production processes, or are the core ingredients impact intensive? Time to start engaging with your \u2018hotspots\u2019 suppliers.\u00a0<\/span><\/p>\n<h3>Requesting primary environmental data\/product LCA\u2019s from suppliers<\/h3>\n<p>We already now have an LCA based on averages (secondary data). But to make your own footprint measurement as accurate &amp; credible as possible, you need to receive (as much as possible) raw data from suppliers too. This raw data is called \u2018primary data\u2019. You can ask for specific data you need on manufacturing processes, but requesting a product LCA from your suppliers is the most ideal situation. A product LCA gives you <strong>exactly<\/strong> all the information you need for your own measurements and helps suppliers to gain insights into their own footprint too.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" class=\"wp-image-12357\" src=\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/Schermafbeelding-2020-12-22-om-15.02.09-1024x709-1.png\" sizes=\"(max-width: 1024px) 100vw, 1024px\" srcset=\"\" alt=\"\" width=\"1024\" height=\"709\" \/><figcaption>Image 3.\u00a0 Overview of your scope 1, 2, and 3 emissions and their biggest hotspots. <em>\u2013 Screenshot from our product portfolio tool Ecochain<\/em>.<\/figcaption><\/figure>\n<h2><strong>Step 3: Find opportunities to \u2018creating shared value\u2019 with suppliers and build a reduction strategy.<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">You now have the (initial) environmental data of your impact hotspots and know which suppliers account for said impact- the next step is to sit down with your suppliers and identify possible improvement opportunities for both of you. If you haven\u2019t gathered primary data from your suppliers yet, this would be a good opportunity to do so.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The goal here is to create <\/span><b>shared value<\/b><span style=\"font-weight: 400;\">. What could your suppliers do in order to become more sustainable, that benefits them as well? What are the business opportunities they can get out of collaborating with you and\/or providing you with product LCA\u2019s?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Read more about Harvard professor Michael Porter\u2019s approach to creating \u2018shared value\u2019 in Business right <\/span><a href=\"https:\/\/hbr.org\/2016\/10\/the-ecosystem-of-shared-value\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">Try to <\/span><b>understand their position and stakes<\/b><span style=\"font-weight: 400;\"> and search for ways to make supplier engagement more marketable for your suppliers. For example, you could challenge your suppliers to use more expensive renewable materials, and in return, you can offer them a long-term contract, <\/span><\/li>\n<li>Developing a <b style=\"font-size: inherit;\">long-term relationship with your key-suppliers<\/b><span style=\"font-weight: 400;\">, allows you to create strategic improvement scenarios and provides a backup that can help both of you succeed in this sustainable improvement process.\u00a0<\/span><\/li>\n<\/ol>\n<h3>Different collaboration types with suppliers<\/h3>\n<p><span style=\"font-weight: 400;\">There are multiple ways in which you can approach your suppliers. And the approach should fit the size of your company, your company\u2019s culture and values, and your position in the supply chain. In the table below you can find the most common collaboration approaches described (Image 3).<\/span><\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-12362\" src=\"https:\/\/ecochain.com\/wp-content\/uploads\/2023\/05\/enforcing-1024x535-1.png\" sizes=\"(max-width: 1024px) 100vw, 1024px\" srcset=\"\" alt=\"\" width=\"1024\" height=\"535\" \/><figcaption>Image 4. Table adapted from <a href=\"https:\/\/sciencebasedtargets.org\/resources\/files\/SBT_Value_Chain_Report-1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">SBT Report: Value Change in the Value Chain: Best practices in scope 3 greenhouse gas management. <\/a><\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">If you are searching for <strong>new suppliers<\/strong>, take a good look at your environmental data and set certain selection criteria for yourself. These criteria can be based on shared values and mission statements- which often form a solid base for developing joint projects or strong relationships.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also look for suppliers that offer similar products, but have credible information\/ environmental data to prove their sustainability. For example, with non-critical suppliers (think of cleaning products) sourcing for alternative products is the easiest. <\/span><\/p>\n<h2><strong>Step 4: Set sustainability or circularity targets in collaboration with suppliers<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">After you agree with your suppliers on a reduction strategy based on shared value, start setting up fitting sustainability key performance indicators (KPI\u2019s). These targets will help you and your suppliers evaluate your progress and track supplier performance. Next, d<\/span><span style=\"font-weight: 400;\">efine a common baseline and decide on a policy should your baseline be adjusted. It\u2019s crucial you understand the actions that with help you achieve these KPIs in order to be able to monitor them.\u00a0<\/span><\/p>\n<h2><strong>Step 5: Monitor the improvements throughout your supply chain<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Once you have new or adapted suppliers as part of your supply chain- see if what you\u2019re doing is actually working.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Always. Keep. Monitoring.<\/strong>\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We advise you to set up your monitoring process by using your supply chain targets as the starting point. <\/span><span style=\"font-weight: 400;\">By continuously monitoring your upstream and downstream environmental impact (image 3), you can:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\">Reflect if your environmental measures are effective or not. Indeed, through annual monitoring;<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Steer your sustainability strategy if needed and identify possible new opportunities for improvement.\u00a0<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>It has become clear that the role of supply chains on companies\u2019 environmental impact is often very high. Up to a point, where 90% of your total environmental footprint can occur in said supply chains. This impact percentage from your supply chain might seem impressive \u2013 but it also opens up many opportunities for substantial [&hellip;]<\/p>\n","protected":false},"author":89,"featured_media":1901,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[74],"tags":[],"industries":[14,15,16,17,18],"use-cases":[21,62,24],"departments":[27],"class_list":["post-1900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-scope-3-supply-chain-data","industries-apparel","industries-construction","industries-food-beverage","industries-other","industries-packaging","use-cases-lca","use-cases-ssc","use-cases-sustainable-supply-chain","departments-production"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>5 steps to get suppliers on board with sustainability - Ecochain<\/title>\n<meta name=\"description\" content=\"You want to make your business more sustainable- but how on earth can you get your suppliers on board too? 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