Every year, billions are poured into mitigating the devastating effects of environmental disasters, and countless hours are spent on recovery efforts. But what if businesses could turn the tide before it begins? One way to make this happen is by rethinking where and how we source our materials, which can amplify sustainability efforts and create a ripple effect of positive change. This is where sustainable sourcing comes into play, offering a proactive solution that addresses problems at their roots.
What Is Sustainable Sourcing?
Sustainable sourcing is a holistic approach to responsible procurement that promotes social justice and environmental stewardship while ensuring viability from a business standpoint. It can often be confused with ethical sourcing. However, ethical and sustainable sourcing aren’t the same thing.
Ethical sourcing primarily focuses on fair labor practices and positive social impact. On the other hand, sustainable sourcing is more encompassing, integrating not just ethical but also social, environmental, and economic factors into the selection of suppliers. Its overarching goal is to minimize the negative impacts of the entire supply chain on the planet and society, transforming it into a force for good.
The Compelling Benefits of Sustainable Sourcing
The advantages of pivoting to sustainable sourcing are numerous and significant.
Sustainable sourcing strategies in business operations protect natural resources, address pollution, and foster biodiversity by reducing carbon footprints. Through fair labor practices, sustainable sourcing ensures equitable wages and safe working conditions, thus promoting social justice and uplifting entire communities.
Sustainably sourced businesses are better aligned with the growing consumer demand for greener and ethical products. By championing sustainable sourcing, they can decrease waste and increase market shares, leading to more savings and enhanced profitability.
Finally, sustainable sourcing practices can enhance a company’s environmental, social, and governance (ESG) ratings. High ESG scores demonstrate effective management of risks and opportunities in connection with ESG factors. This makes the business more attractive to investors focused on long-term, sustainable growth, therefore increasing their access to capital.
A 7-Point Blueprint for Sustainable Sourcing
1. Define Clear Sustainability Criteria
Establish specific ESG criteria that align with your company’s sustainability goals. These criteria might include carbon footprint reduction, waste management practices, ethical labor standards, and community engagement.
2. Conduct Comprehensive Assessments
Evaluate potential suppliers through life cycle assessments (LCAs) and other detailed sustainability appraisals to understand their ESG performance across the entire value chain. This can include reviewing their sustainability certifications (e.g., ISO 14001), public sustainability reports, and compliance with environmental and social regulations. LCAs are an excellent tool, but they are not a perfect representation of a product footprint. Be sure to look out for some of the limitations that come along with data availability, software platforms, systems boundaries, and more.
3. Promote Transparency and Communication
Engage in open discussions with potential suppliers about their sustainability practices. Transparent communication encourages more collaboration and ensures that sustainability goals are aligned. Clearly communicate your sustainable sourcing guidelines with all potential suppliers to ensure compliance across the board.
4. Perform On-Site Inspections
Conduct on-site visits to verify the supplier’s sustainability claims. Such audits can help you assess their actual practices regarding environmental management, labor conditions, and overall compliance with sustainability standards.
5. Prioritize Local and Certified Suppliers
Sourcing sustainable manufacturers might seem challenging at the onset, as there are so many ESG benchmarks to consider. One simple yet effective strategy is to concentrate on suppliers in your local community. Favoring those near your operations allows you to source raw materials closer to the manufacturing site. This can significantly reduce transportation emissions and boost local economies. For businesses where freshness is critical, customers benefit from receiving products in optimal conditions.
Another relatively easy way to determine if a supplier incorporates sustainable practices into their operations is by looking at their certifications. Some of the most relevant and reputable are:
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Fair Trade Certification – Ensures fair prices and ethical working conditions for producers.
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B Corp Certification – Assesses general social and environmental performance.
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SA8000 – Evaluates the ethical treatment of workers.
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Biodegradable Products Institute (BPI) Certification – Confirms that a product meets stringent standards for biodegradability and compostability in municipal and commercial composting facilities.
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TÜV Certification – Verifies that a product, service, or process meets rigorous safety, quality, and sustainability standards.
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ASTM D6400 – Determines whether a plastic product can be considered compostable and labeled as such for consumer and industrial use.
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ASTM D5338 – Determines the biodegradation rate and effectiveness of plastics in composting settings.
6. Use Sustainability Scorecards
Implement sustainability scorecards to assess suppliers against your set criteria quantitatively. These scorecards provide a structured way to compare and select suppliers according to their sustainability performance. The scorecards can incorporate data from LCAs, environmental certifications, and other sustainability metrics to give you a comprehensive view of each supplier’s sustainability profile. These scorecards should be updated annually to ensure suppliers maintain compliance and are ideally improving their scores each year.
7. Strengthen Monitoring with Procurement Platforms
AI-powered procurement technology comprises digital tools that streamline procurement, including supplier management, strategic sourcing, and procure-to-pay systems. These platforms can help you enhance visibility into supplier practices, track metrics such as carbon footprint and energy consumption, and ensure compliance with ESG guidelines.
Bolster Your Sustainable Sourcing Strategy from Day One with Cruz Foam
Cruz Foam exemplifies true sustainability. Our commitment to protecting the planet is evident in every aspect of our operations. From utilizing bio-based, regenerative materials to conducting comprehensive LCAs, we ensure our products are eco-friendly from start to finish.
We live and breathe local, crafting our products in the region closest to our customers’ needs. This means a lower carbon footprint from shorter shipping distances. Our manufacturing process is also designed for seamless integration with existing equipment, minimizing the transition pains for companies looking to switch to sustainable foam.
Not only has Cruz Foam passed stringent compostability tests, meeting both ASTM D6400 and ASTM D5338 standards, but all our packaging ingredients are BPI- and TUV-certified.
Our award-winning sustainable packaging products include Cruz Cool™, a best-in-class cold chain solution that provides exceptional thermal protection for over 48 hours. Fully compostable, Cruz Cool™ packaging is designed to return to the earth safely and efficiently after use.
Equally impressive and compostable, Cruz Cush™ provides supreme protection in a block & brace style for shipping impact-sensitive goods. And for the wine industry, there’s EcoVino™, offering a groundbreaking biodegradable and compostable shipping solution bioengineered using 70% upcycled food waste.
Tackle sustainability issues head-on—right from the very beginning. Make a difference by partnering with us. Together, we can do better—contact Cruz Foam today!
