Suppliers are resistant to change in sustainability practices. How will you overcome their resistance?

- Identify the reasons behind the resistance, that could include economic concerns, lack of awareness, or fear of change. -Develop partnerships with suppliers through trust and mutual respect by engaging in open dialogue and understanding their challenges. -Communicate the long-term benefits of sustainable practices, not just the environmental impact but also potential cost savings and efficiency gains. -Offer incentives for adopting sustainable practices. -Provide suppliers with necessary knowledge&skills to implement sustainable practices. -Encourage suppliers to be part of the solution by involving them in the innovation process. -Implement systems to measure & report on sustainability progress. Share success stories of other suppliers.

Many suppliers resist change because they lack a clear understanding of sustainability practices and their potential benefits. In my experience, I've found that providing comprehensive training sessions and workshops on sustainable practices, highlighting the positive impacts on the environment and the company's reputation, can effectively overcome this resistance. For instance, when working with a paper supplier who was reluctant to adopt eco-friendly practices, we organized a workshop explaining the benefits of using recycled materials and the positive impact it would have on their brand image. This helped them understand the value proposition and eventually led to their adoption of more sustainable practices.

We need to work with Diversity, Equity and Inclusion(DEI) principle with suppliers with core goals are well defined before onboarding. Relationship has to be at partnership level where we can leverage technology, give them access to our business practices and customer sustainability strategies and help them where ever they need support as transparency is the core for long term partnership.

Suppliers are often cost-driven as they are in competition with several competitors. Every additional requirement costs resources and therefore money. There are several ways to increase sustainability in the supply chain. Either requirements are included in the specifications or you enter into direct dialog with the supplier. You can describe your own goals, what steps have been taken to define an objective, what measures are planned to achieve it and what advantages achieving the objective will bring.

Engagement and clear, respectful communication are essential. Demonstrate to your suppliers that you value the relationship while clearly outlining expectations. Establish specific goals, required information, timelines, and consequences. Assist suppliers on their sustainability journey by simplifying information sharing, educating them on company goals and sustainability topics, and suggesting collaborative improvement activities. Allow time for improvement if targets are not met.

While defining the goals and scope of the partnership with suppliers, it's imperative that they see this as a transformational partnership rather than just a transactional one for any sustainability related agenda to be pushed through. Ownership of brand's sustainability goals by suppliers is crucial as that drives accountability to implement sustainable practices at scale. The brands should also make efforts to be equal partners with them in this journey and not just look at product costing or commercial terms for long term collaboration.

Resistance can be related to financial and technical implications that are invisible for clients and stakeholders. To support their suppliers in their transition, companies (especially large companies or companies who know they represent a large share of a supplier's business) can design special schemes to support their suppliers' investments or expenses. These include supporting them with advance payments to serve as working capital or committting to minimum orders. This can reassure suppliers and help them take the necessary risks to develop new products and processes.

Instead of dictating terms, involve your suppliers in the process of identifying and implementing sustainable solutions. This fosters a sense of ownership and encourages them to actively participate in the change. In one instance, I worked with a packaging supplier who was hesitant to switch to biodegradable materials due to concerns about cost and feasibility. By collaborating closely with them, we were able to identify alternative materials that met their budget and operational requirements, ultimately leading to a successful transition to more sustainable packaging.

1) Scope 3 GHG emissions usually constitute a majority of a company’s emissions. In this, Supplier based emissions are one of the hardest to get accurate data on. 2) At first, a company should assess their top N (critical) suppliers for their sustainability readiness and practices. 3) More importantly, the company needs to work with their critical suppliers on clearly outlining areas of Sustainability focus - GHG emissions / Energy Efficiency / Circularity / etc. and going a step further by allocating resources (people, time, & if necessary, funds) to guide the supplier’s Sustainability practices in identified areas of improvement. 4) This collaborative approach goes a long way in building the sustainability capacity of critical suppliers.

Collaboration between buyer and supplier, between suppliers in the same ecosystem and between buyers to reduce investment, gain economies of scale and share risks is critical for enabling the ecosystem. For example, if all the suppliers in an industrial park join together, the target of increasing renewable energy in their energy mix can be achieved easier than they address it independently. Role of industrial associations to drive such collaborative initiative need to be noted.

Manufacturers, processors and traders in any commodity supply chain across the globe are mostly driven by 3 basic motivations - Top line, bottom line and reputation to associate with a brand. Incorporating sustainable practices in their raw material procurement, processing or logistics has become a virtual mandate for all, in recent times due to the evolving ESG requirements globally. More often than not, this is met with a lot of resistance from them. Aligning the expectations related to sustainable practices with their core motivations highlighted earlier helps a lot. For example - Helping them gain access to Carbon credits can help in taking care of the costs associated with switching to cleaner fuels, transportation or raw materials.

Offer tangible incentives to suppliers who adopt sustainable practices. This could include financial rewards, preferential treatment in future contracts, or public recognition for their efforts. When I worked with a logistics provider who was reluctant to invest in fuel-efficient vehicles, we offered them a performance-based bonus tied to their carbon emissions reduction targets. This incentive motivated them to adopt greener practices and significantly reduce their environmental footprint.

Suppliers often resist changes in sustainability practices. To overcome their resistance, incentivize the change. Offer incentives such as financial benefits, longer contracts, or recognition for adopting sustainable practices. Highlight the long-term cost savings and market advantages of sustainability. Provide clear guidelines and support to make the transition easier. Show them the potential for improved efficiency and competitiveness. By creating a positive and rewarding environment, suppliers will be more motivated to embrace sustainable changes.

Incentivising plays a role, when you see a potential in the vendors to take that extra step towards a sustainable change or it becomes a negotiating impacting business. Today, all the Governments around the world have mandated the inclusion of sustainability in every business of every size. Resistance to change will make it only difficult for vendors to get appropriate business in future.

Existe uma máxima em sustentabilidade que diz "se algo n?o é feito por convic??o, será feito por conveniência". A defini??o de padr?es de sustentabilidade nas cadeias de valor está cada vez mais regulada (tomem por exemplo as leis EUDR e CSDDD, da Uni?o Europeia, com implica??es diretas em diversos setores), o que impulsiona naturalmente que mudan?as sejam feitas. Além disso, tais práticas est?o cada vez mais exigidas por bancos em suas linhas de financiamento, como uma vertical de risco a ser analisada. Entende-se também que, com implica??es financeiras negativas, a agenda seja novamente impulsionada.

Establish clear, measurable sustainability standards for your suppliers and communicate them transparently. This provides a framework for accountability and ensures that everyone is working towards the same goals. I've found that setting clear expectations and regularly reviewing performance can help suppliers understand the importance of sustainability and encourage them to prioritize it in their operations.

Implementation of joint responsibility principles for sustainability and human rights across your supply chain (alongside compliance with relevant regulations) should be the base of the sustainability standards and commitments. Build contractual obligations, internal procedures, governance and incentives around such standards and be clear and transparent.

Transparency and consistency help suppliers to meet the requirements. It is therefore important to communicate long-term objectives and ideas at an early stage and to enter into a dialog. Because only if the requirements are understood they can be met.

Suppliers often resist changes in sustainability practices. To overcome their resistance, set clear standards. Establish well-defined sustainability criteria and ensure they are communicated effectively. Make adherence to these standards a requirement for continued partnership. Provide guidance and resources to help suppliers meet these expectations. Monitor compliance regularly and offer feedback for improvement. Setting clear and consistent standards will create a structured path for suppliers to follow, reducing resistance and promoting sustainable practices.

Utilize technology to track and monitor suppliers' sustainability performance. This could include implementing blockchain-based traceability systems, using data analytics to identify areas for improvement, or adopting cloud-based platforms for collaboration and information sharing. In one project, I implemented a supply chain management software that allowed us to track the carbon footprint of our suppliers in real-time. This data transparency not only helped us identify areas for improvement but also incentivized suppliers to adopt more sustainable practices to maintain their competitive edge.

Suppliers often resist changes in sustainability practices. To overcome their resistance, leverage technology. Use advanced tools and platforms to streamline the adoption of sustainable practices. Implement software that tracks and reports on sustainability metrics, making it easier for suppliers to comply and see their progress. Utilize digital training modules to educate suppliers on new practices. Encourage the use of automation and data analytics to improve efficiency and reduce waste. By integrating technology, you can simplify the transition and demonstrate the tangible benefits of sustainability.

Regularly review and assess your suppliers' sustainability performance to ensure they are meeting their commitments and making continuous improvements. This could involve conducting audits, collecting data, and providing feedback to suppliers. I've found that consistent monitoring and open communication can help build trust and create a collaborative environment where both parties are working towards shared sustainability goals.

Stakeholders, customers and other interest groups have sustainability objectives and ideas that have an impact on the company. It is important to track your own progress as well as the development of your suppliers. This allows timely intervention, if necessary, before escalation and non-fulfillment of objectives and requirements occur.