Ethical Supply Chains: Different View Points

Supply Chain Sustainability Revealed: A Country Comparison, 2014-2015 was commissioned by CDP (a member of the We Mean Business coalition) and authored by Accenture consultants. The report reveals how the suppliers of 66 CDP-member corporations (who spend $1.3 trillion in procurement) are approaching risks and opportunities related to climate change and water. Supply chains in the U.S., China and Italy are considered “vulnerable”. Suppliers in India and Canada are judged as not doing enough to manage climate change risks. Indian companies, in particular, demonstrate a low propensity to report on emissions, and suppliers in Brazil have done the least to manage climate exposures and recent water shortages. A profile of Canadian suppliers is provided on page 14. A more business-oriented report, Beyond Supply Chains: Empowering Responsible Value Chains was jointly authored by the World Economic Forum and Accenture consultants. It highlights 31 supply chain practices which, it is claimed, can increase revenue by up to 20% for responsible products, reduce supply chain costs from 9%-16% and increase brand value by 15%-30%. This commercial success, combined with improved environmental impact and better local economic conditions, is called the “triple supply chain advantage”. The report states that “Adopting the triple advantage can also shrink carbon footprint by up to 22% while enabling companies to contribute to local development”.

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