Finding The Solution To A Sustainable Supply Chain
Ever wonder how much pollution a single item of clothing contributes to the environment? The process of creating your favorite top that was delivered to you at your doorstep contributes a lot more pollution to our environment than you think. The supply chain of the clothing industry contributes a generous amount of pollution that contributes to the problem of climate change. Companies are simply ignoring the amount of pollution they are putting into the environment while others are taking steps to limit their carbon emissions.?
What is a Supply Chain??
The definition of the supply chain is a network of individuals and companies who are involved in creating a product and delivering it to the consumer (Hayes, 2022). The supply chain starts with the producer of raw materials to make a product. The supply chain eventually ends when the finished product is delivered to you on your doorstep. In basic terms, there are about four steps that make up a supply chain:?
The Problem of Supply Chains
A company’s supply chain causes a great deal of harm to our climate. According to a McKinsey article, “the typical consumer company’s supply chain creates far greater social and environmental costs than its own operations, accounting for more than 80 percent of greenhouse-gas emissions and more than 90 percent of the impact on air, land, water, biodiversity, and geological resources” (Bové & Swartz, 2019). These greenhouse-gas emissions are also known as carbon dioxide (CO2) emissions. These emissions are released into the atmosphere that eventually build up overtime. The carbon dioxide then traps heat into our atmosphere causing the temperature to slowly rise overtime. A majority of companies lack the focus on their supply chains. Most companies don’t spend enough time tracking and analyzing the output of emissions they are releasing into the environment. Most of these companies that don’t consider the sustainability of their supply chain are fast fashion companies. Some fast fashion companies that contribute detrimental effects to the environment are:?
These companies manufacture products at such a fast pace that their global carbon emissions are higher than other clothing companies. While you might be disappointed that some of your favorite clothing brands aren’t environmentally friendly, there are some companies that are taking the steps to create a sustainable supply chain.?
Nike’s Net-Zero Plan
Nike is one company that is creating a sustainable supply chain. Nike has released many innovative products and concepts to help eliminate pollution from their supply chain. Back in 2020, Nike had partnered with EFM, a real asset investment manager that invests in natural climate solutions, to help eliminate Nike’s carbon footprint. Nike’s partnership with EFM is helping Nike offset the carbon emissions generated in the outbound shipments of all Nike.com purchases in the U.S. (Nike Partners With EFM To Further Offset Carbon Emissions). Nike has not only made efforts to eliminate their carbon footprint in the shipping process, but has also taken steps to reduce their use of freshwater. Instead of using water to grow cotton to create their clothing, Nike had started using recycled cotton to completely get rid of the growing process. Nike has also invited their suppliers to reduce their water use as well. According to Nike’s website, “We leverage NIKE’s Water Minimum Program to outline the basic expectations for our suppliers to adopt water industry best practices. We intercept emerging issues within our supply chain to enable suppliers to maximize their freshwater efficiency and provide training on best practices by water industry experts” (Our Efforts to Conserve Water). Nike hopes their supply chain reaches their goal in their “Nike Move to Zero” journey. With Nike happily sharing their sustainable ideas, hopefully other companies will follow suit.?
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Reformation’s Recycle Plan
Reformation is a clothing company that is also creating a movement to promote emission reduction efforts in their own supply chain. The company has claimed to be carbon neutral since 2015 and has continued to find ways to help give back to the environment while producing clothes to meet their consumer’s standards. The company first starts off with using sustainable raw materials that will be used to create their clothing. According to Reformation’s website, “We seek to partner with suppliers who share a common vision of sustainability, accountability and transparency. We currently require that suppliers meet our standards for: social responsibility, safe & non-toxic, and better materials” (Sustainable Practices). Reformation then continues their supply chain of sustainability with powering their manufacturing facilities with their 100% wind powered suppliers. Reformation has circled their company around their clothing line being carbon neutral. Reformation even focuses on the importance of their employees and staff. Employees are granted four paid off days throughout the year. Employees also participate in local volunteer opportunities. Reformation goes as far as providing a relief fund for employees that are struggling in financial hardship.?
The Future of Sustainable Supply Chains
With the increase of concern with climate change and pollution, companies are starting to switch to a more sustainable solution. Reformation and Nike are just two of the companies that are looking to create a change in their supply chain. If companies analyze their issues and create innovative solutions, there could be a possibility to help the problem of climate change and pollution. Reformation has also provided an example for change within the employee atmosphere of companies in the clothing industry. The creation of a sustainable workplace for employees will create a happy and healthy work environment.?
Resources:?
Bové, A.-T., & Swartz, S. (2019, May 11). Starting at the source: Sustainability in supply chains. McKinsey & Company. Retrieved December 5, 2022, from https://www.mckinsey.com/capabilities/sustainability/our-insights/starting-at-the-source-sustainability-in-supply-chains
Hayes, A. (2022, October 8). The supply chain: From raw materials to order fulfillment. Investopedia. Retrieved December 5, 2022, from https://www.investopedia.com/terms/s/supplychain.asp
Nike Partners With EFM To Further Offset Carbon Emissions. About.nike.com. (n.d.). Retrieved December 5, 2022, from https://about.nike.com/en/newsroom/releases/nike-partners-with-efm-to-further-offset-carbon-emissions
Our Efforts to Conserve Water. About.nike.com. (n.d.). Retrieved December 5, 2022, from https://about.nike.com/en/newsroom/releases/nike-partners-with-efm-to-further-offset-carbon-emissions
Sustainable practices. Reformation. (n.d.). Retrieved December 5, 2022, from https://www.thereformation.com/sustainability/sustainable-practices.html