Supply Side Sustainability Saves Money

One thing I do faithfully before I write the week’s blog is to scour news sites for the latest info on the topic of sustainability.  New studies and reports don’t just roll out; they are most often the result of months or even years of analysis.  So it was welcome news to see a Forbes’ blog, “If Sustainability Costs You More, You’re Doing It Wrong,”  reporting on the first stage of a longer study. 

The initial findings support the view that sustainable business practices are, well, good for business and the environment.  The study is directly relevant to government offices, because government wields enormous purchasing power and is a major consumer of products, supplies, and equipment.  And government at all levels construct and maintain things, such as roads, dams, and bridges, and contract with suppliers and builders.

Forbes is partnering with the American Society for Quality, Corporate Responsibility Officers Association, the Institute for Supply Management, and Deloitte Consulting LLP on a multi-year study that focuses on the value chain (supply chain, distributors, partner organizations, etc.).  As stated in the blog, “The supply chain is where the ROI on sustainability gets real — in the triple digits according to this research. It’s also what separates ‘real’ sustainability from ‘green washing.’" The study was launched to help businesses and NGOs make the value chain more sustainable.

Engages with suppliers (any tier)

Sustainability is embedded in the culture

Has worked with suppliers and others (e.g., distributors) as part of quality programs in the past

Engages with or talks about sustainability with value chain members

Engages with suppliers (any tier)

Provides suppliers with monetary rewards for sharing expertise and knowledge around sustainability

Provides tools, policies, or processes to suppliers and value chain partners

I noted with interest that two other top practices that boost sustainability in an organization are having a specific functional area responsible for sustainability efforts related to the value chain (read Sustainability Officer) and working to highlight the organization’s sustainability efforts to attract and retain employees.  In an earlier blog, I wrote about the role a sustainability program has in attracting and retaining top talent, particularly among the incoming Millennial generation.

As Forbes’ continues to report on findings from this study, I’ll keep you posted.

Read more on Forbes site.