Greening The Supply Chain: How Entrepreneurs Can Drive Sustainability

KEY POINTS
AGreen sourcing is a procurement strategy that focuses on using environmentally friendly materials for your products and their packaging.
KEY TAKEAWAYS
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.
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?