How SMEs integrate sustainability in their supply chain?

Supplier relationships are essential to sustainability and plan execution for every organization. This requires reviewing your supplier chain and aligning your sustainability vision and practices. Big companies have more power to make “demands” from suppliers. Do not let it stop you from asking the proper questions—you will eventually steer them in the right direction.

Integrate sustainability in the tendering-

Tell potential suppliers and tenderers that sustainability is important to your firm and ask how they might help. This communicates the quality of suppliers you wish to work with, emphasizing sustainability. Once you have chosen your supplier, you may include sustainable criteria or targets in your contracts to ensure they meet their promises and know you are monitoring them. Large companies and public service bids often request carbon reduction targets across their supply networks.

Putting a monitoring process-

An evaluation technique can help you and your team choose and review providers consistently. This could be a checklist or script.

It will also let you track their progress and see if their long-term goals match yours. It will become clear which suppliers you want to deal with, which ones you could try harder to convince to go green, and which ones you should let go.

Small businesses may not be able to go through every supplier, so start with your bigger ones, perhaps based on buy quantities or expenditure threshold.

In practice, you may rate them on waste, energy, transport, employee health and safety, working conditions, etc. and make your own annual assessment. Start a spreadsheet with traffic light-colored supplier scores.

What is that you should be looking at in your supplier?

1. Do they have a sustainability plan? Request their sustainability policy or Environmental Management System and monitor their progress annually.

2. Do they have external accreditations that match your selection criteria or are they striving toward accreditation? ISO or industry-specific accreditations are examples.

3. Have they pledged net zero targets?

What will you do if your supplier says- They don't have a plan?

Smaller firms may not have one. Just opening the conversation helps. Even if it's only providing best practices and business lessons, help them. Small businesses have limited time and resources, so while working one-on-one with your primary suppliers is excellent, you may also invite them to a group workshop to help them start their policy. It takes time to implement a sustainability policy, so give them a reasonable timeframe.

With scope 3 being a major barrier for any firm, supply chain adjustments can be sluggish and frustrating for small businesses. But it's also a chance to strengthen supplier relationships and tackle sustainability issues. Your combined influence is greater than your individual impact.

World Views on Sustainable supply chain & SMEs: -

SME’s Net Zero Journey with Colpac & Inspired PLC- The Sustainability Mag

Small businesses are key to?a more sustainable and inclusive world- World Economic Forum

Malaysia releases simplified ESG disclosures guide for SMEs in supply chains- Technode Global

Scope 3: Big business 'must help SMEs decarbonize- Supply chain digital

How smaller companies can help the world get to net zero faster- Green Biz

ESG for SMEs: How ESG Drives Growth for Small Businesses- Triple Pundit

Cheers!!