Sustainable Supply Chain Strategies

According to a new report from independent analyst firm Verdantix., the world’s largest food producers need to

  • Invest in more robust codes of conduct for the management of environmental issues in the supply chain
  • Set a broader range of targets for improved future performance,

The study finds significant variation in the ambition and robustness of the sustainable supply chain initiatives of 12 of the world’s largest food producers – Associated British Foods (ABF), ConAgra Foods, Danone, General Mills, Heinz, Kellogg, Kraft, Mars, Nestlé, PepsiCo, Sara Lee and Unilever – with collective revenues of $390 billion.

The report, Sustainable Supply Chain Benchmark: Food Sector, identifies three potential sustainable supply chain strategies for food producers to follow:

  • Leadership strategies mandate environmental and social standards, target 100% sustainable supply of agricultural and raw materials and engage directly with farmers to improve performance.
  • Opportunistic strategies are motivated by country-specific product sales opportunities.
  • Baseline sustainable supply chain strategies reflect a reactive, lower cost approach to managing social and environmental issues in the supply chain.

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ECOS Environmental Consultants Limited