What are the key SCM practices for aligning with the UN SDGs?

Start by understanding how your supply chain management (SCM) strategy can contribute to the achievement of the UN Sustainable Development Goals (SDGs). Analyze how your operations, logistics, and sourcing practices can align with specific SDGs, considering factors like ethical sourcing, reducing waste, or fostering partnerships with suppliers committed to sustainable practices.

Os indicadores ODS da ONU devem estar incluídos na defini??o da estratégia de gest?o da cadeia de abastecimento das diferentes empresas nos diversos sectores de atividade económica. Exemplo: "zero hunger" ou "sustainable cities and communities" devem ser a north star das empresas que operam no retalho alimentar ou no transporte em cidades. As primeiras devem considerar o ODS sobre o qual mais impacto positivo podem gerar e as segundas, as empresas de transportes devem garantir eficácia na sustentabilidade da movimenta??o de pessoas e mercadorias nos centros urbanos, sendo que isso é cada vez mais relevante num contexto atual de contínuo crescimento das opera??es de last mile delivery nas cidades.

To align your Supply Chain Management (SCM) practices with the UN Sustainable Development Goals (SDGs), start by assessing your supply chain's impact and contributions to the goals. Utilize tools like the SDG Compass or Global Reporting Initiative (GRI) Standards to evaluate current performance and identify gaps and opportunities. Subsequently, align your SCM strategy with the UN SDGs by establishing clear, measurable targets. Prioritize the most relevant issues, integrating sustainability into decision-making and governance processes to ensure effective alignment and progress.

Ensuring & implementing sustainable & ethical practices in your supply chain as well as value chain could be the very first & crucial step to align with the UN SDGs. Some of the significant integrating principles are reducing environmental impact by reducing the carbon footprint by optimizing transportation & reducing waste. Responsible sourcing by ensuring ethical practices such as sustainable sourcing of raw materials, fair labor standards & environmental regulations. Transparency & innovations contributing to SDG 16 & various other SDGs to promote accountability & innovation in SCM enables efficient inventory management, waste reduction & resource optimization.

By understanding the company’s material topics, risks, and opportunities, and linking them with the SDGs, businesses can enhance their resilience against disruptions to operations and supply chain vulnerabilities and also encourage innovation, by driving the development of new products, and services, and are well positioned to benefit from a growing market share.

The second step in aligning Supply Chain Management (SCM) practices with the UN SDGs involves active engagement with stakeholders, including suppliers, customers, employees, investors, regulators, and communities. Employ diverse methods such as surveys, interviews, workshops, forums, or partnerships to communicate your sustainability vision and goals. This engagement facilitates the solicitation of feedback, builds trust and collaboration, and addresses concerns or challenges. Through stakeholder engagement, you can create shared value, enhance transparency and accountability, and foster innovation and learning within your SCM practices.

In my opinion stakeholder's engagement helps business by staying informed about changing regulations & compliance requirements. Engaging with diverse stakeholders & having a frequent communication foster an environment of trust & inclusion which is vital for building long-term relationship & collaboration. Collaborating with stakeholders often brings fresh perspectives & innovative ideas which is important for integration of sustainability principles & social responsibility into business strategies.

Sustainable sourcing should not only be limited to the product or service you source or procure but also the whole value chain ensuring ethical & eco-friendly practices throughout the supply chain. It should focus on reducing waste, minimizing environmental impact, prioritizing fair labor conditions, decent wages, promote gender equality by supporting women's empowerment in supply chains. And mainly minimizing the carbon footprint by reducing greenhouse gas emissions adopting renewable energy resources & promoting eco-friendly transportation.

The fourth step in aligning Supply Chain Management (SCM) practices with the UN SDGs involves optimizing resource efficiency. This entails minimizing energy, water, materials, and waste in the production and delivery of products and services. Techniques such as lean manufacturing, circular economy principles, and green logistics can be employed to reduce resource consumption, lower emissions, extend product life cycles, and recover and reuse resources. Optimizing resource efficiency not only lowers costs but also enhances competitiveness and mitigates the environmental footprint, contributing to the achievement of sustainability goals.

Implementing lean management practices that focus on minimizing waste & optimizing transport routes to reduce fuel consumption & carbon emissions with green initiatives to reduce environmental impacts while enhancing efficiency. Embrace the principles of a circular economy by promoting reusing, reducing & recycling of materials within supply chains, opt for eco-friendly packaging materials that are recyclable or biodegradable. By implementing these strategies executing DEI practices within an organization can optimize resource efficiency contributing to the achievement of several SDGs including SDG 12 - Responsible Consumption & Production as well as SDG 13 - Climate Action.

Encourage social responsibility across the supply chain by ensuring fair treatment of workers, promoting diversity and inclusion, and investing in community development initiatives. Support suppliers who adhere to labor rights, provide safe working conditions, and contribute positively to local communities, thereby supporting SDGs related to decent work, reduced inequalities, and community well-being.

Promoting social responsibility in SCM is crucial for aligning with the UN SDGs which involves socially conscious practices throughout the supply chain. Encouraging diversity & inclusion among suppliers, ensure fair treatment, standard wages & ethical business practices & sustainability. Maintain transparency by conducting regular audits & monitoring of suppliers to ensure compliance with social responsibility standards. Supporting community development initiatives, such as education, healthcare & promote social responsibility create a more sustainable & ethical global supply chain.

Regularly track, measure, and report key performance indicators related to sustainability practices in the supply chain. Develop robust monitoring mechanisms to assess progress toward SDG alignment goals. Transparent reporting highlights achievements, identifies areas for improvement, and demonstrates accountability, fostering trust and credibility among stakeholders.

Optimising logistics for environmental efficiency contributes to SDG 13. In a logistics project, we implemented route optimisation and transitioned to low-emission transportation modes, which significantly reduced our carbon emissions and aligned with the SDGs' focus on sustainable industry, innovation & infrastructure (SDG 9). Collaborating with stakeholders, including suppliers, customers, and NGOs, is key for achieving the SDGs, particularly SDG 17 (Partnerships for the Goals). I've facilitated partnerships focused on sustainability initiatives, such as joint ventures for recycling materials and co-developing sustainable products, which amplified our impact towards the SDGs.

The SDGs provide a great framework to align and communicate areas of importance and focus, internally and with your suppliers. And most companies will choose a subset of the SDGs to prioritise. However, beware the danger that this can provide ‘tunnel vision’ at the expense of other issues. The point of the SDGs is that ALL of them are important, so as part of your SCM are do NOT only educate suppliers around your chosen SDGs; educate them on all SDGs and why you’ve chosen to focus where you have. But, and this is key, with clear guidelines to ensure it is not at the expenses/compromise of negative impact in the area of other SDGs.