Supply Chain Sustainability has become an overwhelmingly important focus of corporations globally. Actions are being taken internally to build new supply chain strategies, but there are a few companies proving that leveraging first-tier suppliers can be equally as beneficial to building a sustainable supply chain.
HP’s plans for sustainable action don’t deviate far from the popular trend.
In an article from Supply Chain Dive it’s stated, “HP's latest sustainability goal is the 10% reduction of first-tier supplier GHG emissions by 2025 as compared with 2015 emissions levels” (Supply Chain Dive 2017).
From the outside looking in, 10% reduction of GHG emissions doesn’t seem like much. But, when it’s all said and done, this 10% of reduction makes a major impact on their overall corporate sustainability. Being that their plans are to reduce the emissions from first-tier suppliers, the impact will be one of centrality within their value chain.
Focusing on reducing emissions in a first-tier supplier base (one that resides close to the core operations of HP) is a wise choice. Instilling sustainability initiatives, in global organizations, is reliant on boarding the ship just as much as hoisting the sails.
In addition to reducing GHG emissions, HP plans to double factory participation in supply chain sustainability programs. Taking those initiatives even one step further, “HP intends to improve the condition of 500,000 of its suppliers' factory workers by 2025, with a focus on women, migrant workers, and students” (Supply Chain Dive 2017)
This is yet another case, proving the importance of strong supplier engagement. A correlation of strong supplier relationship development, and sustainable supply chain practices, is certainly forming.
There is a new normal for big business' supply chain management.