Supply chains: Drive sustainability, unlock resilience, power growth

We know supply chain sustainability is absolutely key to getting to net zero. But with just eight years left to achieve the United Nations’ Sustainable Development Goals (SDGs), there’s growing urgency for organizations to drive greater supply chain responsibility, fast .

Getting to grips with Scope 3

A real focus of attention right now is the role of Scope 3 emissions and the amazing opportunity they create to help build a carbon-neutral future. I had an inspiring discussion on this subject during COP27 . ?During the session, along with sustainability and supply chain leads from Mastercard, De Beers and T-Mobile, we looked at how leading organizations are harnessing advanced technologies and data to understand and gain new visibility into the impact of suppliers beyond Tier 1. During the session, we introduced recent Accenture research which shows that almost two-thirds of upstream emissions lie beyond companies’ Tier 1 suppliers. In fact, Scope 3 emissions are 11.4X greater than all other emissions combined.

?Spotlight on the UN SDGs

These are just some of the findings we highlight in the latest United Nations Global Compact-Accenture CEO Study on Sustainability. ?This is the world’s largest CEO study on sustainability, canvasing 2,600+ CEOs in 128 countries and 18 industries. The findings confirm that supply chains have a crucial role to play in enhancing sustainability and resilience. They also underline the scale of challenge ahead. Confronted with disruption of unprecedented pace and scale, 93% of CEOs are now experiencing 10 or more simultaneous challenges to their business. Climate change already ranks among the top five challenges and as we get closer to 2030, its significance will surge.

?Getting to our goals

The sobering news? 87% of CEOs feel current levels of global instability will limit the world’s ability to meet the UN’s Sustainable Development Goals (SDG) targets. But there’s real cause for hope too: more than half of all CEOs believe that, with greater commitment and action, they could contribute to achieving all these goals on deadline. More than 50% see supply chain responsibility as part of their sustainability strategy. One-third are actively reducing their total Scope 3 emissions. And half are transitioning to circular business models as part of the drive to boost resilience and sustainability. This is all top priority in today’s economic environment. We’ve shown how supply chains play a critical role in enabling companies to achieve total enterprise reinvention .

?Companies that do this use a strong digital core – leveraging cloud, data and AI – to realize 360° Value ?that benefits their business, their people, and the planet. This encompasses the multiple, interconnected areas in which companies can create, drive and report on value. Sustainability is mission critical to driving 360° value, but it’s only the beginning. In other words, at a time when the world needs sustainable supply chains more than ever, the benefits of being a more sustainable organization extend to unlocking new resilience and growth. It’s a win-win. For the planet and for business.

?Digital at the core

So how to move ahead? With unprecedented global instability and disruption, there’s no denying the scale of challenge. But the arguments in favor of change are incontrovertible. Nearly 70% of all CEOs say climate change is already having a moderate or high impact on their organizations. 98% agree sustainability is now central to their role. It’s here that a strong digital core plays a transformational role – and not just in driving sustainability success. It’s also the driver for total enterprise reinvention. That’s because the technologies that enable more accurate planning, scenario modeling and process simulation/optimization provide increased transparency and help to reduce carbon emissions.

The key role played by data is emphasized by the fact that almost three-quarters of CEOs are focused on digitizing their businesses, with 55% enhancing sustainability data collection across the supply chain.

?Pioneering innovation in sustainability and beyond

We’ve found that some CEOs are going even further. These leaders are exploring innovations to embed sustainability even deeper into their organizations. A few industry-specific findings can help identify some key focus areas. In consumer goods, one in four CEOs expect geolocation technology to have a high impact on mapping supply chain risks. In industrials, one in three expect material passports will have a big impact on transparency. And in high-tech, nearly 50% believe R&D into materials substitutes will bring real benefits.

?Supply chain leaders in the spotlight

Like I started by saying, we all know by now that supply chain sustainability is critical to hitting the UN’s SDG targets. Yes, it’s a big ask for every organization. But our study brings into sharp focus how supply chain leaders can drive that transformation.

And, crucially, how companies that commit to total enterprise reinvention will be best positioned to achieve the principal goal: putting sustainable supply chains right at the heart of sustainability strategies.

?I urge you to read our report and take inspiration from the success stories. It’s never been more essential to do so.

?Thanks for reading.