Sustainable supply chain and risk management involves integrating socially, environmentally and financially practices across the entire supply chain. It it inclusive of human conditions, labor laws, material selection, (including raw material extraction), manufacturing, packaging, transportation, distribution, consumption, return and disposal. Responsible sourcing is maintaining a sustainable supply chain and risk management program to assist organizations in not only reducing their risk or brand equity, but also optimizing their end-to-end operations to achieve greater cost savings and profitability.
Sustainability and risk in the supply chain encapsulates a number of different priorities:
- Anti-slavery, human tracking and child labor
- Optimization of natural resources
- Reduction of greenhouse gas emissions
- Financial savings and viability
Supply chain sustainability commitments produce improved environmental performance within a financially viable operating construct.