In today’s world, many people are more aware of the climate crisis. And this awareness is what makes them choose sustainable brands over those who don’t contribute to the fight against climate change.

As an entrepreneur, it would be smart for you to take climate action and get sustainable certifications. Not only will they help build your company’s reputation, but they will also help the environment thrive. \

The best way to start and drive sustainability is through greening your supply chain. And this blog will help you learn how to do it effectively. Let’s start by learning more about the supply chain and how it affects climate change. 

Supply Chain And Climate Change

The supply chain is a network of entities and processes involved in the production and distribution of products or services to customers. It is responsible for the efficient flow of goods and services from procurement, production, logistics, inventory management, customer service, and quality control. 

Given the many responsibilities that the supply chain performs is the considerable amount of emissions it’s accountable for. According to the United States Environmental Protection Agency (EPA), the supply chain makes about 90% of a company’s overall greenhouse gas (GHG) emissions. And while over the decades, companies have worked so hard to lower their Scope 1 and 2 GHG emissions as part of the climate disclosure framework, it’s still not enough considering the GHG emissions happening in Scope 3—their entire value chain. 

Thus, they must take the next step in GHG management, which is to figure out ways to reduce their GHG emissions in the supply chain. But nothing to worry about because we already did the work for you. We’ve listed below some steps to drive sustainability in your supply chain.

Greening Your Supply Chain

There are ways for you to reduce the emissions happening on your supply chain. Here are a few of them:

Green Material Sourcing 

AGreen sourcing is a procurement strategy that focuses on using environmentally friendly materials for your products and their packaging. It helps lower your company’s carbon footprint by reducing the waste that goes to landfills, which significantly contributes to our overall methane emissions. 

After all, material sourcing is the initial foundation of how your products will go. Therefore, greening this process can help you achieve your sustainable objectives on the next steps of your product’s lifecycle.

But how can you make your material sourcing sustainable exactly?

You can do it in three ways. The first is by using sustainable raw materials like lumbers, bamboo fiber, bioplastic compostables, and more. Then, partnering with suppliers who sustainably harvest materials and help conserve wildlife habitat is the second. Finally, the third is by recycling waste and by-products and reintroducing them into the production cycle to reduce the need for more raw materials.

Investing in Green Technologies

Green technology is a broad term used to describe the application of science and technology to the development of environmentally friendly goods and services. From a business perspective, it is utilized to help lower your company’s expenses, energy use, waste, and adverse environmental effects. 

There are many types of green technology, and two of them can be used for the supply chain—alternative energy and electric vehicles. For instance, instead of using fossil fuels to manufacture your products, you can make use of renewable energy sources such as solar, wind, geothermal, and others. Meanwhile, when it’s time for distribution, they can utilize electric vehicles to deliver the products or services to customers.

Optimizing Warehousing And Transportation

Optimizing warehousing and transportation can also help in greening your supply chain. What you’d want to do is make your warehouses and distribution centers closer to the point of need. In other words, build them in an area where most of your orders come from. That way, not only can you make shipping quick and easy, but you also reduce the GHG emissions coming from your transportation. 

It would also help if you use load-planning software to make your logistics smooth sailing. It can help improve cargo space utilization and cut down on the number of trips needed to move your products, which greatly impacts your overall emissions.

The Role of Entrepreneur In Driving Sustainability

Your role as an entrepreneur is to take the lead. Set your green goals and identify ways to achieve them. Determine which areas you need improvement on and also be creative when it comes to your products and services. Make innovations to meet the needs of society and the environment all at once. 

Additionally, aside from starting the change inside your company, you can also go beyond and inspire others. Build relationships with green suppliers, adopt sustainable practices, and be a role model for other businesses. That way, we can strengthen our efforts on a global scale. 

The Bottom Line

Entrepreneurs are key players in the sustainability movement. They lead the way to make a significant difference in the traditional way of a business. They’re the mind for innovating products and transforming company processes into sustainable one. By greening the supply chain with their leadership, we can still look forward to a brighter future.