Sustainable Supply Chain
Expert-defined terms from the Professional Certificate in Procurement Sustainability Practices course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Sustainable Supply Chain #
Sustainable Supply Chain
Sustainable Supply Chain refers to the management of environmentally, socially,… #
This approach aims to minimize negative impacts on the environment, society, and economy while maximizing positive outcomes.
Sustainable Supply Chain involves integrating sustainability principles into all… #
Companies that adopt sustainable supply chain practices seek to reduce waste, conserve resources, minimize carbon emissions, and promote ethical labor practices.
- Green Supply Chain #
- Green Supply Chain
- Corporate Social Responsibility (CSR) #
- Corporate Social Responsibility (CSR)
- Triple Bottom Line #
- Triple Bottom Line
- Circular Economy #
- Circular Economy
Example #
A company implementing sustainable supply chain practices may work with supplier… #
A company implementing sustainable supply chain practices may work with suppliers who use renewable energy sources, prioritize locally sourced materials to reduce transportation emissions, and implement recycling programs to reduce waste.
Practical Application #
One practical application of sustainable supply chain practices is the use of su… #
Companies can opt for biodegradable or recyclable materials and design packaging that minimizes waste.
Challenges #
Some challenges associated with implementing sustainable supply chain practices… #
Companies may also face challenges in measuring and reporting the impact of their sustainability initiatives.
Supplier Diversity #
Supplier Diversity
Supplier Diversity refers to the practice of sourcing goods and services from a… #
This practice aims to promote equity, inclusion, and economic opportunities for underrepresented groups.
- Diversity and Inclusion #
- Diversity and Inclusion
- Minority Business Enterprise (MBE) #
- Minority Business Enterprise (MBE)
- Women's Business Enterprise (WBE) #
- Women's Business Enterprise (WBE)
- Small Business Enterprise (SBE) #
- Small Business Enterprise (SBE)
Example #
A company committed to supplier diversity may have specific procurement goals to… #
By diversifying their supplier base, companies can create opportunities for historically marginalized groups.
Practical Application #
One practical application of supplier diversity is the implementation of supplie… #
One practical application of supplier diversity is the implementation of supplier diversity programs that provide training, resources, and support to minority-owned businesses to help them compete for contracts with larger corporations.
Challenges #
Some challenges associated with supplier diversity include limited access to cap… #
Companies may also face challenges in tracking and reporting on their supplier diversity initiatives.
Life Cycle Assessment #
Life Cycle Assessment
Life Cycle Assessment (LCA) is a methodology used to evaluate the environmental… #
LCA considers factors such as energy consumption, greenhouse gas emissions, water usage, and waste generation to assess the sustainability of a product or service.
- Environmental Impact Assessment #
- Environmental Impact Assessment
- Carbon Footprint #
- Carbon Footprint
- Cradle-to-Grave Analysis #
- Cradle-to-Grave Analysis
- Product Stewardship #
- Product Stewardship
Example #
A company conducting a life cycle assessment of a product may analyze the enviro… #
A company conducting a life cycle assessment of a product may analyze the environmental impact of different manufacturing processes, transportation methods, and end-of-life disposal options to identify opportunities for improvement.
Practical Application #
One practical application of life cycle assessment is the use of LCA software to… #
One practical application of life cycle assessment is the use of LCA software tools to calculate the environmental impact of products and identify areas where emissions can be reduced, resources conserved, and waste minimized.
Challenges #
Some challenges associated with life cycle assessment include the complexity of… #
Some challenges associated with life cycle assessment include the complexity of data collection and analysis, the need for specialized expertise to conduct LCA studies, and the limitations of current LCA methodologies in capturing the full environmental impact of a product or service.
Carbon Neutrality #
Carbon Neutrality
Carbon Neutrality refers to achieving a balance between the amount of carbon dio… #
Companies can achieve carbon neutrality by reducing their carbon emissions through energy efficiency measures, renewable energy sources, and carbon offsets.
- Greenhouse Gas Emissions #
- Greenhouse Gas Emissions
- Carbon Offsetting #
- Carbon Offsetting
- Net Zero #
- Net Zero
- Climate Action #
- Climate Action
Example #
A company striving for carbon neutrality may invest in renewable energy projects… #
A company striving for carbon neutrality may invest in renewable energy projects, implement energy-efficient technologies, and purchase carbon offsets to neutralize their remaining carbon emissions.
Practical Application #
One practical application of carbon neutrality is the development of a carbon ma… #
One practical application of carbon neutrality is the development of a carbon management plan that outlines specific emission reduction targets, strategies for achieving those targets, and mechanisms for offsetting remaining emissions.
Challenges #
Some challenges associated with achieving carbon neutrality include the complexi… #
Some challenges associated with achieving carbon neutrality include the complexity of measuring and monitoring carbon emissions, the cost of implementing carbon reduction measures, and the need for collaboration and transparency across the supply chain to address emissions from all sources.
Renewable Energy #
Renewable Energy
Renewable Energy refers to energy derived from natural resources that are replen… #
Renewable energy sources are considered environmentally sustainable because they produce minimal greenhouse gas emissions and have a lower environmental impact compared to fossil fuels.
- Solar Power #
- Solar Power
- Wind Energy #
- Wind Energy
- Biomass #
- Biomass
- Geothermal Energy #
- Geothermal Energy
Example #
A company investing in renewable energy may install solar panels on their facili… #
A company investing in renewable energy may install solar panels on their facilities, purchase wind energy credits, or use biomass for heating and electricity generation to reduce their reliance on fossil fuels.
Practical Application #
One practical application of renewable energy is the adoption of a renewable ene… #
One practical application of renewable energy is the adoption of a renewable energy procurement strategy that outlines the company's goals for sourcing renewable energy, the types of renewable energy sources to be utilized, and the timeline for implementation.
Challenges #
Some challenges associated with renewable energy adoption include the intermitte… #
Companies may also face challenges in navigating regulatory requirements and market dynamics in the renewable energy sector.
Ethical Sourcing #
Ethical Sourcing
Ethical Sourcing refers to the practice of procuring goods and services from sup… #
Ethical sourcing aims to promote social responsibility, transparency, and accountability throughout the supply chain.
- Fair Trade #
- Fair Trade
- Ethical Supply Chain #
- Ethical Supply Chain
- Social Compliance #
- Social Compliance
- Corporate Accountability #
- Corporate Accountability
Example #
A company committed to ethical sourcing may conduct supplier audits to ensure co… #
A company committed to ethical sourcing may conduct supplier audits to ensure compliance with labor laws, environmental regulations, and human rights standards, and work with suppliers who demonstrate a commitment to ethical practices.
Practical Application #
One practical application of ethical sourcing is the development of a code of co… #
One practical application of ethical sourcing is the development of a code of conduct for suppliers that outlines the company's expectations regarding labor practices, environmental performance, and social responsibility, and includes mechanisms for monitoring and enforcing compliance.
Challenges #
Some challenges associated with ethical sourcing include limited visibility into… #
Companies may also face challenges in balancing cost considerations with ethical sourcing priorities.
Conflict Minerals #
Conflict Minerals
Conflict Minerals are minerals sourced from regions where armed conflict and hum… #
Conflict minerals include tin, tantalum, tungsten, and gold, which are used in various industries, including electronics, automotive, and jewelry.
- Responsible Sourcing #
- Responsible Sourcing
- Dodd-Frank Act #
- Dodd-Frank Act
- Kimberley Process Certification Scheme #
- Kimberley Process Certification Scheme
- Extractive Industries Transparency Initiative #
- Extractive Industries Transparency Initiative
Example #
A company in the electronics industry may trace the sources of tin, tantalum, tu… #
A company in the electronics industry may trace the sources of tin, tantalum, tungsten, and gold in their supply chain to ensure that these minerals are not sourced from conflict-affected regions or financing armed groups.
Practical Application #
One practical application of addressing conflict minerals is the implementation… #
One practical application of addressing conflict minerals is the implementation of due diligence processes to identify, assess, and mitigate the risk of sourcing conflict minerals in the supply chain, including supplier engagement, traceability, and reporting requirements.
Challenges #
Some challenges associated with addressing conflict minerals include the complex… #
Some challenges associated with addressing conflict minerals include the complexity of supply chains in the minerals sector, the lack of transparency in mineral supply chains, and the need for collaboration among industry stakeholders, governments, and civil society to address the root causes of conflict mineral sourcing.
Supplier Code of Conduct #
Supplier Code of Conduct
A Supplier Code of Conduct is a set of principles, standards, and expectations t… #
The Supplier Code of Conduct outlines the company's expectations regarding ethical, social, environmental, and labor practices and serves as a framework for supplier engagement and accountability.
- Supplier Relationship Management #
- Supplier Relationship Management
- Compliance Management #
- Compliance Management
- Ethical Guidelines #
- Ethical Guidelines
- Vendor Code of Conduct #
- Vendor Code of Conduct
Example #
A company may include provisions in its Supplier Code of Conduct that prohibit c… #
A company may include provisions in its Supplier Code of Conduct that prohibit child labor, mandate fair wages and working hours, require environmental compliance, and promote diversity and inclusion in the supply chain.
Practical Application #
One practical application of a Supplier Code of Conduct is the integration of co… #
One practical application of a Supplier Code of Conduct is the integration of code compliance requirements into supplier contracts, performance evaluations, and audits to ensure that suppliers are meeting the company's ethical and sustainability standards.
Challenges #
Some challenges associated with Supplier Code of Conduct implementation include… #
Some challenges associated with Supplier Code of Conduct implementation include the need for effective communication and training with suppliers, the complexity of monitoring and enforcing compliance across a diverse supplier base, and the risk of non-compliance leading to reputational damage or supply chain disruptions.
Carbon Footprint #
Carbon Footprint
Carbon Footprint refers to the total amount of greenhouse gases, primarily carbo… #
Measuring carbon footprint helps assess the environmental impact of emissions and identify opportunities for reducing carbon emissions through energy efficiency, renewable energy, and other mitigation measures.
- Greenhouse Gas Emissions #
- Greenhouse Gas Emissions
- Carbon Accounting #
- Carbon Accounting
- Carbon Offset #
- Carbon Offset
- Carbon Neutral #
- Carbon Neutral
Example #
A company may calculate its carbon footprint by aggregating the emissions from e… #
A company may calculate its carbon footprint by aggregating the emissions from energy consumption, transportation, waste generation, and other activities, and use this data to set emission reduction targets and track progress over time.
Practical Application #
One practical application of carbon footprint analysis is the development of a c… #
One practical application of carbon footprint analysis is the development of a carbon reduction strategy that identifies emission hotspots, prioritizes mitigation measures, and establishes a roadmap for achieving carbon neutrality or other sustainability goals.
Challenges #
Some challenges associated with carbon footprint analysis include data quality a… #
Some challenges associated with carbon footprint analysis include data quality and availability issues, the complexity of calculating emissions across the supply chain, and the need for standardized methodologies and reporting frameworks to ensure comparability and transparency in carbon footprint assessments.
Circular Economy #
Circular Economy
Circular Economy is an economic model that aims to minimize waste and maximize r… #
The circular economy promotes a closed-loop system where resources are kept in use for as long as possible to reduce environmental impact and create economic value.
- Cradle-to-Cradle #
- Cradle-to-Cradle
- Waste Reduction #
- Waste Reduction
- Resource Recovery #
- Resource Recovery
- Product Life Extension #
- Product Life Extension
Example #
A company embracing the circular economy may design products that are easily dis… #
A company embracing the circular economy may design products that are easily disassembled and recycled, implement take-back programs for used products, and explore opportunities for material reuse and reprocessing to extend product life cycles.
Practical Application #
One practical application of the circular economy is the adoption of product ste… #
One practical application of the circular economy is the adoption of product stewardship programs that encourage manufacturers to take responsibility for the entire life cycle of their products, from design and production to end-of-life disposal, through strategies such as product design for recyclability and closed-loop supply chains.
Challenges #
Some challenges associated with the circular economy include the need for collab… #
Some challenges associated with the circular economy include the need for collaboration among stakeholders to close material loops and scale circular solutions, the lack of infrastructure and incentives for circular practices, and the mindset shift required to move from a linear to a circular economy approach.
Biodiversity #
Biodiversity
Biodiversity refers to the variety of life forms, including plants, animals, and… #
Biodiversity plays a crucial role in maintaining ecosystem health, resilience, and functioning, and provides essential ecosystem services such as pollination, water purification, and climate regulation.
- Ecosystem Services #
- Ecosystem Services
- Habitat Conservation #
- Habitat Conservation
- Species Extinction #
- Species Extinction
- Conservation Biology #
- Conservation Biology
Example #
A company operating in a biodiversity #
rich region may conduct biodiversity assessments, habitat surveys, and species inventories to identify and mitigate potential impacts on biodiversity from their operations, such as habitat destruction, pollution, or invasive species introduction.
Practical Application #
One practical application of biodiversity conservation is the implementation of… #
One practical application of biodiversity conservation is the implementation of biodiversity offset programs that compensate for habitat loss or degradation by investing in conservation projects or restoration activities that enhance biodiversity and ecosystem services in other areas.
Challenges #
Some challenges associated with biodiversity conservation include the complexity… #
Some challenges associated with biodiversity conservation include the complexity of biodiversity assessments and monitoring, the competing land use demands that threaten biodiversity conservation, and the need for regulatory frameworks, incentives, and stakeholder engagement to support biodiversity-friendly practices.
Social Compliance #
Social Compliance
Social Compliance refers to the adherence to labor standards, human rights princ… #
Social compliance programs aim to protect workers' rights, ensure safe and healthy working conditions, and promote ethical labor practices throughout the value chain.
- Labor Rights #
- Labor Rights
- Worker Welfare #
- Worker Welfare
- Occupational Health and Safety #
- Occupational Health and Safety
- Ethical Labor Practices #
- Ethical Labor Practices
Example #
A company may conduct social compliance audits of suppliers to assess compliance… #
A company may conduct social compliance audits of suppliers to assess compliance with labor laws, international labor standards, and the company's code of conduct, and work with suppliers to address any violations and improve working conditions.
Practical Application #
One practical application of social compliance is the development of social resp… #
One practical application of social compliance is the development of social responsibility policies, training programs, and grievance mechanisms to promote a culture of respect, fairness, and accountability in the workplace and supply chain.
Challenges #
Some challenges associated with social compliance include the complexity of moni… #
Some challenges associated with social compliance include the complexity of monitoring and enforcing labor standards across global supply chains, the risk of labor abuses in informal or subcontracted labor, and the need for transparency, collaboration, and worker empowerment to address social compliance issues effectively.
Zero Waste #
Zero Waste
Zero Waste is a holistic approach to waste management that aims to eliminate or… #
Zero waste strategies focus on redesigning products, processes, and systems to prevent waste, reduce consumption, and promote circularity.
- Waste Reduction #
- Waste Reduction
- Resource Recovery #
- Resource Recovery
- Closed-Loop System #
- Closed-Loop System
- Sustainable Packaging #
- Sustainable Packaging
Example #
A company committed to zero waste may implement waste audits, source reduction i… #
A company committed to zero waste may implement waste audits, source reduction initiatives, recycling programs, and composting systems to divert waste from landfills, conserve resources, and reduce environmental impact.
Practical Application #
One practical application of zero waste is the development of a zero waste plan… #
One practical application of zero waste is the development of a zero waste plan that sets waste diversion targets, identifies waste streams for reduction, recycling, or reuse, and engages employees, suppliers, and customers in waste reduction efforts.
Challenges #
Some challenges associated with zero waste initiatives include the complexity of… #
Some challenges associated with zero waste initiatives include the complexity of waste stream analysis and management, the need for behavior change and education to promote waste reduction, and the infrastructure and regulatory barriers that hinder zero waste practices in some regions.
Water Stewardship #
Water Stewardship
Water Stewardship refers to the responsible management of water resources to ens… #
Water stewardship involves assessing water risks, setting water targets, and implementing water conservation and management practices.
- Water Footprint #
- Water Footprint
- Water Scarcity #
- Water Scarcity
- Water Conservation #
- Water Conservation
- Water Quality #
- Water Quality
Example #
A company operating in a water #
stressed region may conduct a water risk assessment, implement water-efficient technologies, and engage with local communities and authorities to manage water resources responsibly and reduce water-related impacts.
Practical Application #
One practical application of water stewardship is the development of a water man… #
One practical application of water stewardship is the development of a water management plan that outlines water use reduction strategies, water recycling and reuse opportunities, and water risk mitigation measures to enhance water efficiency and resilience.
Challenges #
Some challenges associated with water stewardship include the complexity of wate… #
Some challenges associated with water stewardship include the complexity of water risk assessment and management, the competing demands for water resources from various stakeholders, and the need for collaboration, transparency, and innovation to address water-related challenges effectively.
Green Procurement #
Green Procurement
Green Procurement involves sourcing products and services that have minimal envi… #
Green procurement practices aim to reduce waste, conserve energy and water, and minimize greenhouse gas emissions throughout the procurement process.
- Sustainable Procurement #
- Sustainable Procurement
- Environmentally Preferable Purchasing (EPP) #
- Environmentally Preferable Purchasing (EPP)
- Eco-Friendly Products #
- Eco-Friendly Products
- Green Supplier #
- Green Supplier
Example #
A company practicing green procurement may prioritize products with eco #
label certifications, energy-efficient features, recycled content, or minimal packaging to reduce the environmental footprint of their purchases.
Practical Application #
One practical application of green procurement is the inclusion of environmental… #
One practical application of green procurement is the inclusion of environmental criteria in procurement policies, specifications, and supplier evaluations to guide purchasing decisions toward more sustainable options and support green supply chain initiatives.
Challenges #
Some challenges associated with green procurement include limited availability o… #
Some challenges associated with green procurement include limited availability of green products and services, higher upfront costs for environmentally preferable options, and the need for supplier collaboration and innovation to meet sustainability requirements while maintaining cost competitiveness.
Carbon Disclosure Project (CDP) #
Carbon Disclosure Project (CDP)
The Carbon Disclosure Project (CDP) is a global nonprofit organization that work… #
CDP provides a platform for reporting environmental data, benchmarking performance, and driving climate action.
- Environmental Reporting #
- Environmental Reporting
- Climate Change Mitigation #
- Climate Change Mitigation
- Sustainability Reporting #
- Sustainability Reporting
- Corporate Transparency #
- Corporate Transparency
Example #
A company participating in the CDP may submit annual climate change disclosures,… #
A company participating in the CDP may submit annual climate change disclosures, respond to investor inquiries on climate-related risks and opportunities, and use CDP data to inform climate strategies, target-setting, and stakeholder engagement.
Practical Application #
One practical application of CDP reporting is the integration of CDP reporting r… #
One practical application of CDP reporting is the integration of CDP reporting requirements into sustainability reporting frameworks, corporate governance practices, and risk management processes to enhance transparency, accountability, and decision-making on climate-related issues.
Challenges #
Some challenges associated with CDP reporting include data collection and verifi… #
Some challenges associated with CDP reporting include data collection and verification complexities, the alignment of CDP reporting with other reporting frameworks, and the need for continuous improvement in disclosure quality, scope, and relevance to meet stakeholder expectations and regulatory requirements.
Responsible Supply Chain Management #
Responsible Supply Chain Management
Responsible Supply Chain Management involves integrating ethical, social, and en… #
Responsible supply chain management encompasses supplier engagement, risk assessment, performance monitoring, and continuous improvement to ensure responsible sourcing practices.
- Supply Chain Sustainability #
- Supply Chain Sustainability
- Supplier Relationship Management #
- Supplier Relationship Management
- Ethical Sourcing #
- Ethical Sourcing
- Corporate Accountability #
- Corporate Accountability
Example #
A company #
A company