We have reached a moment when we realize that everything depends on nature, look around you and realize that it is not only the planet, but industries, businesses, people and society. Businesses and natural resources constitute a complex chain in which activities substantially impact the conditions of ecosystems, biodiversity on the planet and human well-being. One of the most relevant discussions at the World Economic Forum was about the supply chain, and its fundamental role in the performance of companies, in the world economy and in the success of the planet's sustainability.
Companies are increasingly aware of the need to diversify their supply chains and make them more resilient in order to minimize the impact of future crises and aware of supply chain vulnerabilities clearly seen during and post-COVID.
Beyond the efficiency of this supply chain, which varies significantly around the world, the main point we want to address here, also highlighted at the World Economic Forum, is the sustainability of supply chains and the awareness in companies to reduce their environmental footprint to seek to strengthen, control and ensure that their suppliers are aligned with ethical, environmental and socially responsible standards.
We start from the point that some figures have been alarming, one of the sensitive points to observe is how the planet's biodiversity is compromised, The world uses more than 100 billion tons of natural resources every year. Resource extraction has more than tripled since 1970, including a five-fold increase in the use of non-metallic minerals and a 45% increase in fossil fuels. Material extraction is the main driver of biodiversity loss and climate change. This will only get worse until we start looking at effective solutions. Meanwhile, as nature declines, the prospects for business success and future prosperity diminish.
One of the aspects raised, of immense importance, was about the supply chain and the importance of it being connected with sustainable values and the benefits in how companies can adopt sustainable practices in their supply chains can reduce costs, increase efficiency and improve brand indicators.
In summary, we will list 6 steps for you to start drawing up new plans:
1 - Understand why nature is important
- The value of nature for business is often overlooked, but all economic production is related to or dependent on it.
- To define the right long-term strategy, reflect on your connection and trust in nature and the potential corporate risks and opportunities arising from nature.
2 - Take stock
- Consider the work your company has already done in dealing with net zero targets or social issues.
- Identify the places or opportunities where you started and build on them.
3 - Find
- Start the first step of the assessment and dissemination process (see LEAP Framework)..
- Identify opportunities and risks in your value chain.
4 - Identify the next steps
- Develop a roadmap for implementation. Don't be afraid to start small, to design pilot programs and then to scale them up.
- Consult local communities to learn new ways to engage with and value nature.
5- Communicate
- Stakeholders increasingly expect companies to have a strong environmental record.
- Find ways to develop a two-way dialog with your stakeholders to understand their needs.
All these needs and the urgency of the matter have been bringing immediate action from large companies:
"Protecting, restoring and regenerating nature is key to securing the planet for generations to come, and we must be ambitious in our intentions and action-oriented in our approach. Burberry's biodiversity strategy will not only address the impacts on our own extended operations, but also help create new systems to reduce biodiversity loss in the world's areas of greatest need, making a significant contribution to global conservation efforts." - Gerry Murphy, Chairman of Burberry
The supply chain is a crucial issue for the new global economy that is emerging. It has a significant impact on the performance of companies, the competitiveness of economies and the maintenance of the planet's biodiversity and sustainability.
