A new report showed that some companies have started to take our overheating climate seriously by concentrating on the sustainability of the supply chain, but many lack the forest for the trees.
What happens?
As Forbes described in detail, a survey of 2024 Deloitte showed that 56% of the organizations move the needle on two or three climate paper, which the report describes as a “profound business option”.
Many management managers have focused on cleaning their supply chains, for example by improving pollution or improving work standards.
Another report by the Global Compact and Accenture of the United Nations showed that combating the sustainability of the supply chain is crucial for combating the climate crisis, since the supply chains make up 60% of global carbon pollution.
For this reason, almost half of all CEOs implement environmentally friendly strategies for supply chain management and circular business models-a system with a closed circuit, in which products used can be recycled or reused.
Although these efforts are undoubtedly helpful, companies could have much greater effects by taking “solutions at landscape level” a variety of approaches, taking into account the complex ecological, social and economic factors that have an effect on business management, as Forbes explained.
Why is this integrated approach important?
If companies concentrate on the larger picture by taking into account the environmental challenges such as biological diversity, responsible land use and water shortages if business decisions are made, the positive effects would feel far beyond their direct supply chains.
For example, companies can contribute to the resilience of the climate by joining the government authorities, landowners, local communities and other companies to ensure that sustainability efforts benefit the regions to which they receive raw materials for their products.
Although this takes more time and effort than only concentrating on sustainability of the supply chain, this would lead to more resilient business models by storing the resources of the earth.
Forbes explained that this approach at landscape level has already carried fruit with the active project in Indonesia-a collaboration between Mars Inc., United States Agency for International Development, and other institutions.
The project includes sustainable cocoa -agorst practices that protect the agricultural industry in Indonesia and the conclusion of Mars. Other companies could follow this example to protect their investments and the communities on which they depend on success.
“It is about reducing the effects of your supply chain – but it is also about making a positive contribution to the wider system in order not only to alleviate the climate and natural effects, but to become positive in the long run,” said one of the Landscale Rainforest Alliance and Conservation International developed initiative towards Innovation Forum. “You have to look beyond the supply chain if we want to successfully tackle major systemic problems such as climate change, the loss of biological diversity, water quality and poverty.”
What do other companies do to help?
While most companies can do more about sustainability, some have made some great progress in their quests to become green. For example, theme parks such as Disney World and Universal Studios have brought a massive solar system online to the power supply and unveiled electric trams.
McDonald's and Mercedes-Benz have started to record some of their products more environmentally friendly. However, there is no doubt that these companies have to increase the use of plastic alternatives, but we should celebrate progress when it happens.
As individuals, we can support these efforts by using our shopping for the good and the purchase of environmentally friendly companies. The more we reset initiatives, the greener our planet and the future will be.
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