How can beverage companies ensure sustainable sourcing?

1 What is sustainable sourcing?

Sustainable sourcing is the process of obtaining raw materials, ingredients, and packaging from suppliers that adhere to social, environmental, and economic standards that protect the well-being of people and the planet. Sustainable sourcing can help beverage companies reduce their environmental impact, improve their reputation and trust, save costs and risks, and create positive social change. Sustainable sourcing can also help beverage companies meet the expectations of their customers, investors, regulators, and partners, who are increasingly concerned about the sustainability and traceability of the products they consume or support.

2 How to assess sustainability risks and opportunities?

Before implementing sustainable sourcing practices, beverage companies need to assess their current situation and identify the main risks and opportunities in their supply chain. This can involve conducting a sustainability audit, mapping the sources and flows of their materials and ingredients, as well as engaging with stakeholders to understand their needs and expectations. Some of the common sustainability risks and opportunities for beverage companies include water scarcity and quality, climate change and carbon footprint, biodiversity and deforestation, and human rights and labor standards. For example, beverage companies must use water efficiently while also protecting the water sources of their suppliers. They must also measure and reduce their greenhouse gas emissions, protect biodiversity in their sourcing regions, and ensure that suppliers receive fair wages. Ultimately, these practices can help beverage companies improve their sustainability performance while also creating a positive impact on the environment and society.

3 How to implement sustainable sourcing practices?

Once beverage companies have identified their sustainability risks and opportunities, they need to develop and implement sustainable sourcing practices that address them. This requires setting clear and measurable sustainability goals and targets, establishing policies and standards for suppliers and partners, monitoring and verifying compliance, and reporting progress and impact. Beverage companies can adopt practices such as sourcing certified or verified ingredients, sourcing locally or regionally, sourcing from smallholders or cooperatives, or sourcing from circular or regenerative systems. Sourcing certified ingredients can ensure compliance with social, environmental, and economic criteria. Sourcing locally or regionally can reduce transportation costs and emissions while supporting local economies and communities. Sourcing from smallholders or cooperatives can improve livelihoods and empowerment while fostering long-term relationships. And sourcing from circular or regenerative systems can conserve natural resources while reducing environmental impact.

4 How to align with the United Nations Sustainable Development Goals?

The United Nations Sustainable Development Goals (SDGs) are a set of 17 global goals that aim to end poverty, protect the planet, and ensure peace and prosperity for all by 2030. Beverage companies can align their sustainable sourcing practices with the SDGs, and contribute to their achievement, by mapping their sustainability impacts and opportunities to the relevant SDGs and targets, integrating them into their strategies, policies, and standards, measuring and reporting their performance according to the SDG indicators and metrics, and collaborating with stakeholders. This will enable them to identify where they can make the most positive difference, align their efforts with their core values and mission, track their progress and improvement, and scale up their sustainability efforts.

5 How to communicate and engage with stakeholders?

Communicating and engaging with stakeholders is an essential component of sustainable sourcing, as it can help beverage companies build trust, create awareness, and generate feedback. Beverage companies can communicate and engage with their stakeholders by crafting compelling and transparent sustainability stories that appeal to their audiences' emotions and values. Additionally, they should use various channels and platforms such as websites, social media, labels, packaging, reports, events, and campaigns to reach and interact with their stakeholders. Companies should also invite their stakeholders to participate in their sustainability journey by providing them with opportunities to share opinions, ideas, and experiences. Moreover, they should listen to and respond to their feedback and concerns.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?