The market today is still highly volatile. Our supply chains are getting global and highly complex. A recent article published in the Oxford Economics study outlines why companies need to balance cost efficiency with the sustainability of their supply chains.
Despite several roadblocks, many organizations are putting high efforts into balancing the bottom and green lines.
The latest article published by Gartner in 2021 showcases the top 25 companies making great strides with their sustainable supply chain strategies.
Let’s have a look at how companies are making the change.
L’Oréal announced its sustainability program, “L’Oréal For the Future, Because our Planet is Worth it,” to reduce 50% carbon footprints with its finished products by 2030. Also, it aims to contribute 10 million euros to environmental projects led by women worldwide.
“Digital Beauty” was created to focus on the company’s supply chain strategy primarily. Further, it focuses on optimizing the packaging using 100% recycled plastics. With the increased use of data and digitalized process they are optimizing their e-commerce.
Walmart is digitalizing and evolving to adhere to sustainable practices. The company invested $11 billion in its e-commerce, supply chain, and technology in the last two years.
By 2025, Walmart aims to source 20 of its commodities through 100% sustainable sources, focusing on nature and the dignity of people working in supply chains. The launch of Walmart+ aimed to upgrade the warehouse management system to increase supply chain efficiency.
The company has also committed to achieving zero emissions by 2040.
Colgate-Palmolive showcased transparency and resilience in its supply chain. The conglomerate focuses on improving supplier performance and sourcing of their raw materials. The company already produces its toothpaste tube with 100% recyclable materials and does not shy away from sharing its tube technology with its competitors for the environment’s safety.
By 2025 they want to focus on their Sustainability & Social Impact Strategy with their key ambition: driving social impact, helping millions of homes, and preserving our environment. Joining other companies, they plan to have net zero emissions by 2040.
JOHNSON & JOHNSON
The Johnson & Johnson Foundation pledged $50 million to help frontline healthcare workers during the pandemic. Not only the foundation but the employees also donated $2 million to the victims of Hurricane Maria in Caribbean.
With its Health for Humanity 2025 goals, the company contributes to the global effort to achieve global health, social justice, environmental stewardship, and responsible business practices.
With the highest score of 6.37, which tops Gartner’s list for the second time in a row, the Cisco Foundation is investing $100 million in climate solutions over ten years.
With its integrated sustainability initiatives with its supply chain business, they have pledged to decrease GHG by 30% by 2030. Their environmental and social responsibility policies consist of adopting the RBA supplier code of conduct and working with the Responsible Minerals Initiative for the ethical sourcing of minerals.
With impactful, sustainable policies, these companies are moving towards co-existence with the environment with continuous improvement and evaluation. Technological advancement allows companies to manage their inventories to avoid overstocking and reduce their environmental footprint.