Savills : Why sustainability is important for occupier supply chains

The supply chain of a typical consumer company accounts for more than 80 per cent of its greenhouse gas emissions (known as Scope 3 emissions). In order to achieve a sustainable supply chain, the consumer company therefore has to address environmental, social, economic and legal concerns across the board.

Supply chain sustainability refers to a company's efforts to consider the environmental and human impact of their products and services, from raw materials sourcing to production, storage, delivery and transport.

A fully sustainable supply chain is one that ensures socially responsible business practices. However, as a supply chain gets deeper, we often see the emergence of a loss of control over the governance and operational management.

Here's what occupiers can do to ensure their supply chain is sustainable:

• Continuous transparency and disclosure with employees, suppliers, communities and stakeholders on your sustainability commitments and impacts.
  
  
• Adopt a cultural mindset to prepare and plan for resilience - for example, adaptation to extreme weather events as a result of climate change, or even pandemics.
  
  
• Put in place an approach that works beyond compliance- where sustainability principles are at the core of culture, process and operations.
  
  
• Procuring products that last and can be reused, repaired and remanufactured incorporates circularity as an option in the supply chain.
  
  
• Refer to your Code of Conduct as a part of your everyday business and governance. Embed the social considerations of sustainability and ethics into decision making processes at all levels.
  
  
• Embed responsible business conduct into polices and supply chain and responsible procurement management systems - for example, strengthen tender evaluations to holistically include sustainability criteria.
  
  
• Track the implementation of measures and results - that is, ensure a cycle of continual improvement. Up to 90 per cent of an organisation's environmental impact lies in the value chain, either upstream (supply chain) or downstream in the product use phase. Analysing and taking action on your value chain is therefore a vital step for any business that wants to become more sustainable and prepare for a low carbon economy.
  
  
• Communicate how impacts are addressed. Advocacy is hugely important in sustainability - if you find something that works well, shout about it.

Not only is having a sustainable supply chain a responsible part of managing business, proving your green credentials can also help to align with existing and prospective clients. Externally verified certification is one way to show potential clients that you're taking essential steps to reduce your impact on the world. For example, through implementing internationally recognised management standards, such as ISO 14001, which is the best in class environmental management system standard, you are demonstrating commitment to the highest levels of sustainability.

By taking a holistic approach to supply chain management and responsible procurement, occupiers can help to balance waste and environmental footprint concerns, while also improving labour conditions and community impacts.

Further information

Contact Tanya Broadfield

Savills Worldwide Occupier Services