List Sustainability

Top 10 Sustainable Supply Chain Initiatives

By Helen Sydney Adams
June 16, 2021 6 mins

Design the answer to supply chain disruption - McKinsey Uber Freight & VAS deal is aut

Sustainability begins in the supply chain, informing better practices to reduce our impact on
the environment and promote brighter prospects for business

Consumers are calling for greater sustainability in every area of their purchasing, even those
non-customer facing elements such as supply chain. In a 2020 survey, 70% of consumers said
they thought it was important that the brands they buy from are sustainable. Here we consider
the top 10 supply chain initiatives that are taking a stand to put sustainability first and
promote eco-friendly as the new normal. 

10: HSBC
HQ: Canary Wharf, London

Revenue: $50bn USD (2017-2020)

Claiming to be “the world’s local bank” would make little sense if it were not trying to alleviate
some of the damage human behaviour has caused to this planet. HSBC has made 2030 their
target for “building a thriving low-carbon economy” by ensuring that their operations and
supply chains are net zero carbon. In addition, the bank is putting up to $1trn of finance and
investment to support customers who want to make the same bold transition. Group Chief
Executive Noel Quinn said: “HSBC is committed to opening up opportunities. As we enter a
pivotal decade of change, we have a landmark opportunity to accelerate our efforts to build a
healthier and more sustainable future.”

09: Nike
HQ: Oregon, USA

Revenue: $37.4 billion USD

In the early 2000s, sportswear company Nike was blighted by accusations of sweatshop
labour. In the present day, Nike has firmly moved in a transparent direction, from factory floor
to shop floor, in managing a supply chain that works for all, including the environment. 

“This past year we used Nike’s scale and influence to raise the bar for sustainability,” said CEO
John Donahoe. “We saw real progress throughout our supply chain: We are currently using
100% renewable energy in the United States and Canada in our owned or operated facilities.”
In addition, Nike’s European Logistics Campus in Laakdal, Belgium, is surrounded by canals, so
99% of containers reach the campus by water, which saves 14,000 truck journeys annually.  

08: Aldi
HQ: Dessen, Germany

Revenue: $13bn / €11bn

The supermarket with low prices, a bakery and a mysterious middle aisle is taking
sustainability seriously, by introducing solar panels to power some stores is the USA. Across
the world, tons of food goes to waste – either from shops floors or having expired in
customers cupboards. Aldi plans to halve food waste by 2030 and is developing plans for
composting waste in its reverse supply chain.

 
07: Jaguar Land Rover
HQ: Coventry

Revenue: £318m / $441bn

Jaguar’s mobility service is managed by InMotion, which uses blockchain technology. This
allows raw materials to be traced from origin to supplier. “This will enable Jaguar Land Rover to
source with greater transparency as to the provenance, welfare, and compliance of suppliers
throughout its networks. It will also enable Jaguar Land Rover to assess the carbon footprint of
its supply chain,” said Jaguar Land Rover.

06: Philip Morris International

HQ: New York, USA

Revenue: $28bn

The cigarette company behind Marlboro, Bond Street and Red & White is dedicated to
supporting tobacco-farming communities and preventing children from being used in the
workforce. “The socio-economic well-being of tobacco-farming communities depends on
many factors, including resilience to climate shocks and regulatory framework,” claims the
company. When these factors are underdeveloped, child labor persists. PMI has been
transparent in the reports of child labour.

05: Asda
HQ: Leeds, UK

Revenue: £23bn/$31bn

The British supermarket Asda is focusing on raising respect for workers’ rights across their
supply chain. “We are a supermarket with an environmentally responsible and sustainable
sourcing model,” say the policy. A member of the Ethical Trading Initiative the company, Asda’s
clothing line, George, refuses to buy cotton from Uzbekistan due to the use of forced child
labour. By 2025, 30% of polyester will be made from recycled content.

 
04: ShipHawk
HQ: California, USA

Revenue: $5m

The shipping software company was founded in 2012. “We are on a mission to create a world
where shipping positively impacts society without thrashing workers, the environment, or the
bottom line,” says ShipHawk. The company aims to reduce packaging materials to help
combat “the 36 million tons of packaging waste filling our landfills”. Using ShipHawk’s multi-
carrier services, the company is also working towards making transportation “more efficient”.

03: IKEA
HQ: Delft, Netherlands

Revenue: $41.3bn

The Scandinavian furniture giant has had sustainable supply chain policies in place for years: a
2005 partnership with WWF supporting cotton farmers and sustainably sourced cotton from
2015. Furthermore, the IKEA Forest Positive Agenda for 2030 plans to reforest areas which
have been damaged. The company will only buy wood from destinations which have been
verified by third party certification systems and encourages customers to recycle IKEA
products.

02: P&G
HQ: Cincinnati, USA

Revenue: $70bn

P&G is committed to a sustainable future: ending deforestation, supporting local farmers and
as previously reported in Supply Chain, creating a solution to the palm oil problem. P&G’s
policy on Wood Pulp details: “We have a responsibility through our practices to ensure
sustainability of the world’s forest resource.” This includes minimizing unwanted sources of
wood and maintaining independent third party verification systems of policies. 

 
01: Suntory
HQ: Tokyo, Japan

Revenue: $21bn

It's estimated that there are up to 8 billion plastic straws in the ocean. Drinks company Suntory
has left plastic straws in the past, with Ribena cartons now only available with paper straws.
The company created a policy on the Sustainable Supply Chain in 2011, with six sustainable
ideals, including legal compliance, human rights and labour. “We will promote activities
mindful of the global environment,” the statement reads.

SUSTAINABILITY SUPPLYCHAIN MANUFACTURING ESG

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