The first step is to define what sustainability means for your business and your suppliers. You can use frameworks such as the United Nations Sustainable Development Goals (SDGs), the Global Reporting Initiative (GRI), or the ISO 26000 standards to identify the relevant sustainability issues and indicators for your industry and market. You can also align your sustainability criteria and goals with your customers' expectations and preferences, as well as your own values and vision. You should communicate your sustainability criteria and goals clearly and transparently to your suppliers and stakeholders, and set realistic and measurable targets for improvement.
The second step is to collect and analyze data on your suppliers' sustainability performance and practices. You can use various methods and sources to gather this information, such as supplier self-assessments, audits, surveys, certifications, ratings, reports, or third-party databases. You should verify the accuracy and reliability of the data, and use standardized and comparable metrics to evaluate your suppliers. You can also use tools such as scorecards, dashboards, or matrices to visualize and compare the data, and identify the strengths and weaknesses of your suppliers.
The third step is to evaluate and prioritize the impact of your suppliers' sustainability on your value proposition and competitive advantage. You can use frameworks such as the triple bottom line (TBL), the balanced scorecard (BSC), or the value chain analysis (VCA) to assess how your suppliers' sustainability affects your economic, environmental, and social outcomes and objectives. You can also use tools such as the SWOT analysis, the Porter's five forces analysis, or the PESTEL analysis to examine how your suppliers' sustainability influences your opportunities and threats, your industry attractiveness, and your external environment. You should prioritize the suppliers and issues that have the most significant impact on your business value and competitiveness.
The final step is to implement and monitor actions to improve your suppliers' sustainability and its impact on your business. You can use strategies such as supplier development, supplier collaboration, supplier diversification, or supplier rationalization to enhance your suppliers' capabilities, performance, and innovation in sustainability. You can also use incentives such as recognition, rewards, contracts, or penalties to motivate your suppliers to meet or exceed your sustainability expectations and standards. You should monitor and review your suppliers' sustainability progress and results regularly, and provide feedback, support, and guidance to help them achieve their goals.