What is a sustainable supply chain?
A sustainable supply chain comprises measures to integrate and improve environmental, social and economic standards along the entire supply chain. The aim is to minimize negative impacts on the environment and society.
In Germany, the Supply Chain Act (LkSG) obliges companies to comply with human rights and environmental standards along their supply chain. At EU level, there is the Corporate Sustainability Due Diligence Directive (CSDDD), which is based on the French “loi de vigilance” and the LkSG. These regulations set out legal requirements and due diligence obligations for companies.
Other countries around the world have also introduced laws and initiatives to promote sustainable supply chains in order to comply with due diligence and legal requirements.
Why sustainable supply chain management?
In a world increasingly characterized by climate change, resource scarcity and social inequalities, sustainable supply chain management is becoming increasingly important. It enables companies to minimize risks, increase efficiency, meet legal requirements and strengthen their brand by taking responsibility and creating transparency.
All the benefits of a sustainable supply chain at a glance
Our services:
We support you in evaluating your supply chain according to key criteria and work with you to make your supply chain legally compliant and more sustainable. In particular, we support you in the selection of your suppliers and other crucial aspects of your supply chain.
- Supplier selection according to sustainability criteria
- Checklists with sustainability criteria according to ASI, RS and/or other standards
- Human rights due diligence
- Risk analysis and risk assessment
- Risk mitigation measures
- Preparation of sustainability reports
- Supplier monitoring and auditing
- Training and further education for employees
Unique advantages of PPP
PPP helps companies to design and manage their supply chains sustainably. Our expertise includes consulting, implementing sustainable practices and optimizing existing processes to maximize both environmental and social responsibility.
- Fast turnaround: Thanks to state-of-the-art software systems, we deliver results in record time.
- International team: Our global team is on hand to help you create and optimize your product carbon footprint.
- Industry expertise: Our team has in-depth knowledge of sustainability, environmental management and social responsibility and can draw on extensive experience in various industries.
- Customized solutions: Every business is unique, and therefore we offer customized and individual solutions to meet your specific needs. Our aim is to ensure that your sustainability strategy is put to the best possible use.
- Measurable improvements: Our created PCF’s enable product improvements, precise marketing statements and process optimizations.
- Ongoing support: We are your long-term partner for sustainability. Our support does not end with the creation of the PCF, but includes the development of a sustainable strategy for the future.
- Improved sustainability practices and a strengthened image: Improved sustainability practices can strengthen the image of the brand and the company. We help you to use the findings for your marketing strategy.
Free initial consultation
Interested in a more sustainable supply chain? Arrange a free initial consultation with our experts.
Patrick Wortner
CEO | MBA and Eng., Dipl.-Ing. (FH)
Key aspects of sustainable supply chains
An efficient and future-oriented, sustainable supply chain is made up of several key aspects. These include the consistent selection of sustainable suppliers, the efficient use of resources and the consistent application of ethical standards that comply with legal requirements.
The aim is to promote transparency and responsibility at all stages of the supply chain, leading to continuous improvement and sustainable business practices.
How sustainable supply chains work
Sustainable supply chains require a holistic view of production and delivery processes, taking into account environmental and social criteria from procurement to delivery. They encourage close collaboration with suppliers and partners to develop sustainable solutions that are not only environmentally friendly but also economically beneficial. This approach helps companies to operate efficiently and responsibly.
Measurement and visibility of sustainable practices
To ensure the effectiveness of sustainable supply chains, clear key performance indicators (KPIs) and regular audits are essential. Due diligence is a key aspect of complying with legal requirements. These help to make progress visible and initiate continuous improvements. Transparency plays a crucial role in strengthening the credibility and trust of all stakeholders.
CBAM – Carbon Border Adjustment Mechanism
The Carbon Border Adjustment Mechanism (CBAM) is an EU climate policy instrument that introduces a carbon price for certain imported goods to avoid the risk of carbon leakage. From October 2023, companies importing goods affected by CBAM from third countries will have to meet a number of requirements.
These include the identification and documentation of all direct and indirect emissions generated during the production of the imported goods. They must also submit a quarterly CBAM report containing information on the volume of imported goods, their embedded emissions and the carbon price paid in the third country.
From January 2026, companies will also be required to purchase and surrender CBAM allowances corresponding to the embedded emissions of the imported goods. The following information must be included in a CBAM declaration
The total quantity of the type of goods imported in the previous year
The quantity of emissions attributable to the imported goods
A test report from an accredited auditor
A detailed whitepaper on CBAM and its implementation can be found here:
BUTTON [link to whitepaper].
Outlook
The importance of sustainable supply chains will continue to grow in the future, as they enable companies to respond to global challenges such as climate change and resource scarcity. Companies’ duty of care is constantly increasing.
Legislators have also recognized the need and are increasing the pressure on companies to implement sustainable practices.
Sustainable supply chains are not only becoming a necessity for the environment and society, but also offer a decisive competitive advantage by improving a company’s image and opening up new market opportunities.
Free initial consultation
Interested in a more sustainable supply chain? Arrange a free initial consultation with our experts.
Patrick Wortner
CEO | MBA and Eng., Dipl.-Ing. (FH)
Frequently asked questions
What is a sustainable supply chain?
A sustainable supply chain integrates environmental, social and economic practices across the entire product life cycle and aims to minimize negative impacts on the environment and society.
What advantages does a sustainable supply chain offer my company?
A sustainable supply chain leads to cost savings, efficiency gains, risk minimization, transparency of due diligence and strengthens the company’s image, which in turn improves its market position.
How can my company implement sustainable practices in the supply chain?
By implementing sustainability criteria when selecting suppliers, optimizing internal processes and promoting transparency and accountability in all phases of the supply chain. Legal requirements along the supply chain are reviewed and complied with.
What challenges could arise when switching to sustainable supply chains?
Challenges can include high initial costs, the need for intensive collaboration with suppliers and the challenge of maintaining complete transparency and control over complex supply chains.
How do we measure and evaluate sustainability in our supply chain?
This is done by defining and regularly reviewing KPIs, conducting audits and establishing a culture of continuous improvement in order to achieve and exceed sustainability targets. Due diligence is required to conduct a thorough review of legal requirements.