Dell, PepsiCo & SAP: Sustainable Supply Chain Commitments

Sustainable supply chains can reduce waste whilst alleviating pressure on supply chains as fewer materials are needed to create a product, resulting in less mining, harvesting and sourcing, according to the World Economic Forum.

When companies broadcast these goals through laying out commitments it can be beneficial for several reasons.

Company commitments can allow for transparency between customers and companies which could create more trust and mean more sales. 

SAP says that customers are also more likely to be loyal when they can see companies demonstrating strong social and environmental responsibility, with public demand for a transparent supply chain being at an all time high.

Having clear goals for all members of staff to see can be beneficial as it allows for everyone to understand what the company's targets are. 

SAP is a company that provides software solutions to help businesses manage processes such as supply chain, its technology aims to help customers reach sustainable supply chain commitments through management tools.

Sophia Leonora Mendelsohn, Chief Sustainability and Commercial Officer at SAP says: “Without a firm grasp on all of the data, companies can struggle to make the right decisions when it comes to sustainability.”

“Sustainability data is business data. The companies that treat it that way will be able to demonstrate real results in regulated and competitive markets.”

What is a sustainable supply chain?

Sustainable supply chain commitments refer to a company’s pledge to and actions to minimise its supply chain’s negative environmental and social impacts.

Companies can minimise the impact through integrating ethical practices, resource efficiency and long term economic viability.

SAP says some companies may include creating a green supply chain through integrating environmentally responsible principles and bench marks into supply chain management, such as into product design, material sourcing, manufacturing logistics and end of lids product management. 

Companies may also focus on supply chain transparency, this refers to a businesses ability to disclose information about its goods, labour and end to end supply chain practices. 

Alongside this, a circular supply chain can also be referred to in commitments, focusing on reducing the use of raw materials and reusing old products for new ones. 

Sustainable supply chain commitments in technology

Several technology companies are broadcasting sustainable commitments within supply chains, with a big focus on how to create a curricular economy in the technology sector. 

Microsoft

Microsoft says it is committed to the responsible sourcing of raw materials in hardware products, saying it wants to continue the implementation of its responsible sourcing of raw materials policy.

The company says it commits to improve and enhance its existing governance, risk assessment and due diligence activities, alongside supplier engagement and compliance related to human rights and environmental issues.

Teresa Hutson, Corporate Vice President, Trusted Technology Group at Microsoft says: “As we navigate the complexities of a rapidly evolving global landscape, we remain steadfast in our commitment to transparency, accountability and collaboration with stakeholders across our supply chain. 

“We remain committed to protecting fundamental rights and to work to use technology for the benefit of people everywhere.”

Dell

By 2030 Dell says it aims to reduce absolute scope 3 GHG emissions from purchased goods by 45%, alongside reduced Scope 3 emissions associated with the use of sold products by 30%.

The company says it is committed to reducing its water stress, by working with suppliers to analyse water use, offer training and develop/implement water management plans.

Alongside this the company is promoting the acceleration of a circular economy. By 2030 it wants to have 100% of its packaging created from renewable or recycled material with half of its products being made from recycled, renewable or reduced carbon emission materials. 

Michael Dell, Chairman and CEO at Dell Technologies, says: “Sustainability and ESG commitments are now widely recognised as business imperatives that impact everything from supplier decisions to business strategy.

“At Dell, we are both meeting our goals and helping customers meet theirs.”

Sustainable supply chain commitments in the consumer industry

Sustainable supply chain commitments have become a key part in the consumer industry especially for food providers like PepsiCo and McDonald's.

McDonald's

McDonald's says it is committed to sustainable sourcing and using the large brand to positively impact the planet, animals and people in its supply chain. 

By the end of 2025 the company wants to engage 10 million families and connect them to farming, nature and the future of sustainable food. 

Using the Mcdonald’s Young Talent Programme the company wants to start more than 100 careers in food and farming for young people from diverse backgrounds by 2030.

Chris Kempczinski, CEO at McDonald's, says: “As a leading global brand, we understand our responsibility to help preserve our planet so our business and future generations can continue to thrive. 

“To protect the future of McDonald’s, we need to help protect our Earth’s natural resources so that we can continue serving our communities.”

PepsiCo 

PepsiCo says that communication and transparency are at the heart of its reports approach, using its pep+ reporting approach creating a view of its progress and challenges faced. 

The company says it has a commitment to integrate more sustainable and inclusive solutions across its value by:

• Adapting its business to the realities of climate change
• Replenishing high water risk watersheds 
• Innovating more sustainable packaging and minimising waste 
• Supporting sustainable food systems and an inclusive workforce development 

Ramon Laguarta, CEO at PepsiCo says "In 2021, we introduced a new North Star to guide our work at PepsiCo: pep+.” 

"It's not just a business strategy; it's a transformative journey across our operations, from production to marketing to distribution. 

“It's our vision to deliver a more sustainable, people-centric future, driving growth and value, for everyone."