Embedding externalities (e.g. laborer rights, legal accountability, and environmental stewardship) into supply chains is critical to sustainably managing our planet’s resources. Companies need to manage its business risks more effectively, regardless of the personal viewpoints of their CEOs or staff.
Supply chains are inextricably linked with environmental and social issues such as deforestation, climate change, water management, pollution, and exploitative labor practices. Our planet’s finite resources will be pushed to their limits as global consumption accelerates in the coming decades. The estimated benefit of transitioning the global economy to a sustainable, “circular” economy with optimized resource recycling is more than $1 trillion in material savingsi. While it is difficult to estimate the size and magnitude of the global supply chain, examples of its impact include:
Global supply chains are managed to create long-term value for all stakeholders, effectively managing finite resources, minimizing waste, and providing safe, dignified working opportunities. Complex supply networks are held accountable for environment and labor standards through consumer- and policy-driven systems of transparency.