96 Transparent and responsible supply chains that offer visibility of environmental, social and economic risks are an integral part of a sustainable economy. In particular, sourcing of materials needs to take account of impacts across the supply chain. With corporate GHG emissions in a company’s supply chain on average 11.4 times higher than operational emissions (includes land-based companies),1 businesses need to address these often hidden impacts if they are to have any chance of performing sustainably. Sustainable procurement and purchasing policies enable organisations to clarify their priorities and align their activities with their principles to achieve ESG targets. Companies engaged in the travel business can also create awareness among their guests, which is good for business. For cruise and ferry operators, refits and refurbishment processes can become opportunities to collaborate on achieving their climate ambitions by working with design companies that help them source and dispose of materials and fittings sustainably. While this starts with creating visibility of raw materials and commodities in the supply chain, according to the Textile Exchange, eventually it should include “the broader geographical context and landscape, including aspects affecting biodiversity such as impacts to habitat condition and connectivity, proximity to areas of high conservation value, conservation of important watersheds, and other crucial elements, many of which are highly site-specific.”2 In addition to ensuring that they do not select suppliers that fall short of the required standards, businesses can also work with their suppliers to help them become more sustainable through actions such as setting up communications channels to increase transparency, providing training programmes, establishing shared platforms where data about the supply chain can be shared, and benchmarking with other organisations to glean best practice ideas.3 Specification and procurement Sustainable procurement is about more than choosing products that claim to be environmentally friendly, sustainable or even zero-carbon. Certification schemes, labelling systems and standards can help narrow down decisions but can throw up conflicting requirements. LEED 4.1 recommends sourcing from manufacturers that participate in extended producer responsibility programmes. Verifiable policies on materials reuse and potential for recycling are also important factors. 1 Source: CDP Worldwide, Engaging the Chain 2 Source: Textile Exchange, Biodiversity Insights Report 3 Source: ClimatePartner, What Makes a Supply Chain Sustainable? Supply chain, procurement and specification INTERNAT IONAL WI SDOM
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