The business community has come a long way since the terms "sustainability" and "sustainable development" became part of the vernacular 25 years ago after the report of the Brundtland Commission to the United Nations. Gradually, consumers began to demand that a concern with the "triple bottom line" – economic, social, environmental – had to be demonstrated by businesses and this began to have a real impact on buying decisions.
I was reminded recently what a constant the "sustainability" theme has become as I scanned a column by Nina Winham in Business in Vancouver (March 6-12, 2012). Not only does this local business weekly now have a sustainability columnist, the focus of this particular piece was "sustainable purchasing". Purchasing, or procurement, if you will, is a key function in the supply chain. If a company is serious about delivering a sustainable, or "green", product or service to the market, the supply chain perspective provides the required comprehensive view of all the inputs and processes.
The emphasis on supply chain management and its vital role in assuring consumers that the purchases they make reflect socially and environmentally responsible decisions, comes as no surprise to those of us with some experience in the food processing industry. About 15 years ago, it became mandatory to implement HACCP (Hazard Analysis Critical Control Point) as a food safety strategy. The requirement to analyse and account for all inputs and processes – and demonstrate that you had done so - threw a harsh light on supply chain management, or the lack of it, in the food industry. Three key factors affecting supply chain management – traceability, audit processes and certification – quickly became paramount in the food industry. I am sure that businesses that have implemented other quality management programs, ISO 9001 for example, have had the same experience.
Now we see emphasis on traceability, audit and certification in all industries where it is important to establish origins and authenticity and show that your product or service is consistent with social and environmental standards. And it is driven as much, perhaps more, by industry response to consumer demand as by government regulation. One of the longer-established sustainable certifications – Marine Stewardship Council – was not a government initiative; it was industry driven and spear-headed by Unilever.
To read the remainder of the article, click here.