What do you do if your suppliers' sustainability practices are questionable?

1 Assess Situation

The first step is to thoroughly assess the situation by reviewing the supplier's sustainability reports and practices. You need to understand the specific areas where their practices fall short of your company's sustainability standards or legal requirements. This might involve looking at their waste management, energy use, resource sourcing, or labor practices. Once you have a clear picture of the issues, you can prioritize them based on their environmental impact and the feasibility of implementing changes.

2 Open Dialogue

Initiating an open dialogue with your supplier is crucial. Approach the conversation with a collaborative mindset, expressing your concerns while also showing willingness to work together towards improvement. This is not about assigning blame but rather seeking solutions that align with both parties' sustainability goals. During this dialogue, listen to the supplier's perspective and challenges they might face in improving their practices.

3 Set Expectations

After establishing open communication, it's time to set clear expectations. Outline your sustainability criteria and the specific areas where you expect to see improvement. This might include waste reduction, energy efficiency, or ethical labor practices. Make sure these expectations are realistic, achievable, and time-bound, giving your supplier a clear framework for what needs to be done and by when.

4 Monitor Progress

Monitoring progress is essential to ensure that your supplier is making strides towards better sustainability practices. Establish a timeline for regular check-ins and progress reports. This will not only keep the supplier accountable but will also provide you with the information you need to assess whether the changes are effective and in line with your sustainability goals.

5 Offer Support

Recognize that achieving sustainability can be a complex process and offer support to your supplier where possible. This could involve sharing best practices, providing training, or even co-investing in initiatives that help them improve their environmental footprint. By providing support, you're investing in a more sustainable supply chain and demonstrating your commitment to long-term partnerships and corporate responsibility.

6 Explore Alternatives

If, despite your efforts, the supplier fails to meet the agreed-upon sustainability standards, it may be necessary to explore alternative options. This could mean reducing your orders from the supplier while they work on improvements or ultimately finding a new supplier that aligns more closely with your sustainability values. Remember, your supply chain reflects on your business, so it's important to make choices that uphold your commitment to sustainability.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?