ESG Solutions

Sustainable SupplySupply Chain Strategies

T3 helps you redefine supply chain strategies through the lens of sustainability, ensuring your business operations align with the highest ESG standards and contribute to your overall growth objectives.

Overview of Topic

Sustainable supply chains are increasingly recognized as crucial for ensuring business resilience and maintaining a strong reputation. Disruptions in the supply chain can have a profound impact on profitability, as highlighted by a McKinsey study showing that such disruptions can reduce the operating profits of large firms by up to 55%. In addition, the growing market for sustainable products, expected to reach $150 billion in sales by 2021 according to Nielsen, underscores the economic potential of sustainable supply chain practices. These practices are not only about risk mitigation but also about tapping into new market opportunities, improving brand loyalty, and enhancing market share.

Key aspects of sustainable supply chain management include:

  • Supply Chain Transparency: Establishing transparency throughout the supply chain is fundamental. This involves tracking and disclosing the environmental and social impact of each stage of the supply chain. It allows for better risk management, improved compliance with regulations, and increases consumer trust, as customers are increasingly interested in the origins and impacts of their purchases.
  • Supplier Sustainability Assessment and Engagement: Assessing and engaging with suppliers on sustainability practices is key. This includes evaluating suppliers’ environmental and social practices and working collaboratively to improve these practices. It ensures that sustainability values are upheld throughout the supply chain, leading to a reduction in environmental impact and enhancing the ethical credentials of the products.
  • Resource Efficiency and Waste Reduction: Implementing strategies for more efficient use of resources and reducing waste in the supply chain is critical. This can involve optimizing production processes, utilizing sustainable materials, and adopting circular economy principles to minimize waste. These practices not only reduce environmental impact but can also lead to cost savings.
  • Green Logistics and Transportation: Optimizing transportation and logistics for lower carbon emissions is another key aspect. This might involve using more efficient transportation modes, investing in fuel-efficient or electric vehicles, and optimizing logistics routes to reduce fuel consumption and greenhouse gas emissions.
  • Risk Management and Resilience Building: Developing strategies to manage risks, such as climate change impacts, political instability, or economic fluctuations, and building resilience against these risks is essential. This involves diversifying suppliers, developing contingency plans, and investing in technologies that enhance supply chain visibility and flexibility.

In an era where sustainability is a key driver of consumer and investor decisions, integrating these strategies into supply chain management is not only a way to mitigate risks but also a strategic move to position a business as a leader in sustainable practices.

Significance in Today's Landscape

Tackling climate change is not just about compliance; it is about seizing growth opportunities that climate action unfolds. 

Mandatory supply chain due diligence has arrived, driven by new legislation such as Germany’s Supply Chain Act (LkSG) and the impending EU Corporate Sustainability Due Diligence Directive (CSDDD). These laws demand unprecedented scrutiny of supply chains to address environmental and human rights concerns. Europe leads this regulatory push, with France’s 2017 Duty of Care Law, Norway’s 2022 Transparency Act, Germany’s recent LkSG, and the Netherlands developing its HREDD bill. The overarching EU CSDDD will set a union-wide standard for due diligence and align national laws with its requirements.

Regardless of your company’s location or industry, preparing for compulsory due diligence is essential. The various laws, each with unique specifications, converge on the expectation that companies establish thorough processes to identify, mitigate, and report on ESG issues within their operations and supply chains.


We help all firms in definiting their ESG solutions (Financial Services, Corporates)

Asset Managers
Commodity Houses

How Can We Help?

Enhance your supply chain’s resilience and fulfill your ESG ambitions with T3’s comprehensive supply chain management solutions. Our integrated approach not only addresses sustainability but also manages risks effectively:


Sustainable Supply Chain Management

Utilize our advanced digital tools to elevate your supply chain’s sustainability. This involves assessing and addressing risks while seizing new opportunities for growth.


Risk Mapping and Identification

We conduct thorough analyses of your operations and supply chain to pinpoint human rights and environmental risks, complying with regulations such as the Norwegian Transparency Act, which demands comprehensive risk assessments.


Risk Verification

Our due diligence at the supplier level confirms identified risks, aligning with mandates like the LkSG, which requires supplier assessment upon substantial risk knowledge.


Risk Mitigation and Prevention

We take proactive measures to lessen risks and prevent their recurrence, in line with the requirements of the EU CSDDD for documented steps in managing and averting negative impacts.


Monitoring and Reporting

Regular evaluations and adjustments of strategies are key. We ensure your efforts’ effectiveness is measured, recalibrated as needed, and transparently reported, adhering to the annual evaluation and publication requirements of the CSDDD.


Decarbonization Strategy

We pinpoint critical emission sources in your supply chain and guide you in prioritizing decarbonization initiatives. This includes actively involving your suppliers in these efforts


Sustainable Procurement Practices

We integrate ethical and sustainable procedures into your procurement processes, making responsible purchasing a core aspect of your operations.


Supplier Diversity and Inclusion Programs

Our services include developing and managing robust supplier diversity programs, complete with clear objectives and strategic implementation.


Human Rights Risk Assessment

We provide in-depth analysis of human rights risks within your operations, assisting with compliance, ongoing monitoring, and necessary remediations.
With T3’s holistic solutions, your business is equipped to navigate and excel in the evolving landscape of sustainable supply chain management.

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