Benchmarking sustainability

It is not enough just to verify the sustainability of every aspect of a company’s supply chain.

Business leaders must communicate the message to its consumers and be ready to respond instantly and credibly when an issue arises, he says.

A new PwC report, Benchmarking in the supply chain, was recently commissioned by New Zealand Trade and Enterprise (NZTE) as part of its sustainability benchmarking project.

PwC worked with a handful of local companies exporting to the US and Europe, two territories where consumers place a premium on goods in which the ingredients or components can be traced and verified.

“From a customer choice perspective,” Taylor says, “those markets are more developed than they are here, particularly in Europe. These customers want to know how it has got from its raw material stage right through to how end-of-life issues such as disposal are addressed, and understand the sustainability issues along the way.”

For Taylor, embarking on a “sustainability voyage” is a no-brainer. It reduces risk, particularly around market-changing legislation. Cost-savings and efficiency can be found as a company examines all aspects of its production.

New business opportunities can be found, he continues, citing Interface’s “solar made” synthetic carpet that arose out of a sustainability brain-storming session.

Not only can commercial reputations be espoused by prompt and clear communication of a brand ethos, they can actually be burnished by paying attention to all aspects of the supply chain, he says.

The report, Taylor adds, provides a broad framework for businesses wanting to consider the sustainability of  its products and services – and verifiably so – by providing a high-level benchmark against which companies can measure themselves.

The report’s sustainability checklist is possibly its most valuable contribution to businesses, comments Richard Laverty, NZTE's Operations Director for the ICT, creative and services sector.

For instance, manufacturers are urged to map out the different stages of the manufacturing process and to examine what influence companies can bring to bear on supply chain partners.

List all raw ingredients and their toxicity and fully assess the social and environmental impact, the report urges.

Laverty says there are a multitude of consultants able to assist in this process and NZTE can either help directly or by referral. It has been running a sustainability work programme since 2007 and is able to work strategically with businesses.

The retail sector, the report advises, should use independent certification as a key means of building credibility in an increasingly discerning market.