Environment and sustainability in the supply chain

Sustainability in the supply chain

Sustainability is becoming an increasingly important part of the corporate agenda and businesses are coming under pressure to employ responsible operational and strategic practices in their supply chains. This is especially so in light of the climate change targets that stakeholders and governments are focussing on. Terms such as circular economy, sustainability, corporate social responsibility (CSR) and environmental, social and governance (ESG) have become increasingly commonplace, putting sustainability aims and objectives firmly on the agenda for an organisation’s supply chain management.

CSR, also known as corporate responsibility or corporate citizenship, is a business management or governance concept whereby an organisation aims to create a positive impact, through its commercial activities, on its environment, consumers, employees, and other stakeholders. ESG is an umbrella term used to refer to the environmental, social and governance issues or aspects of an activity. The term is closely aligned with the concept of CSR and ‘responsible investment’. CSR and ESG considerations are related to, but distinct from, the corporate responsibility to respect human rights.

Practice Note: Supply chain sustainability considers supply chain sustainability and

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