Over the COVID-19 pandemic, organisations such as HealthTrust Europe have been able to successfully manage and overcome supply chain challenges through the use of their worldwide partners. This was achieved by understanding the importance of due diligence and through maintaining positive relationships with suppliers. Supporting these working relationships allows businesses to ensure the safety of their supply and helps to match their suppliers with the company’s social values.
Sustainability and net-zero in the supply chain
The monitoring of supply chains across the global network helps organisations to consider the ‘whole-life costs’ of a product. By taking the time to develop a clear understanding of a supply chain, businesses are able to make value-judgements about their practices. In prioritising long-term benefits over short-term savings, businesses are able to make sustainable decisions whilst remaining financially efficient. As international businesses move on the path to net-zero, this is becoming even more important.
For instance, by understanding which parts of a chain are more carbon-intensive, businesses are able to accurately assess their environmental impact. Having such an understanding of one’s supply chain is part of the solution.
This works to embed sustainability at the core of a business and creates long-term cost savings, whilst minimising the risk of public criticism.
At HealthTrust Europe, sustainability is at the heart of the company.
“I am extremely proud to be part of the HealthTrust Europe team,” said Nanette Grant, Vice President for Sourcing. “Our talented, diverse workforce is driven and provides us with a perspective based on empathy, understanding and innovation.”
ESG policies are standard business practice
In 2021, the green agenda and push toward net-zero intensified – particularly during COP26 – and global leaders discussed how to forge a global approach to lowering greenhouse emissions. As a result of this, organisations are becoming more aware of their environmental impact, as global progress in human rights have also encouraged more organisations to more carefully manage the ethics of their practices.
At the same time, consumers are becoming more environmentally and socially aware, to the point where consumers are making decisions based on the values of organisations and holding them to account for their failures.
As a result, it is becoming standard business practice to have ESG policies in place, and to ensure that all aspects of a business follow them, including the supply chain where Scope 3 emissions originate. By introducing sustainable procurement, businesses have been able to reduce their risk of exposure to any emerging standards whilst also improving their environmental record with consumers.
Sustainable procurement is the future for every industry and it is essential that businesses are able to have open conversations about it, to hold one another to account where their practices lack sustainable and social value, and to ultimately drive-up standards as the procurement industry enters a new era.