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Benefits of Sustainable Sourcing
Each year roughly 32 million acres of forestland -- an area the size of Louisiana -- are lost to logging and agricultural conversion. And during the next four decades, the human population is expected to grow from 6.8 billion to more than nine billion, putting even greater pressure on forests around the world. These statistics prove that it has never been more important to manage our remaining natural resources wisely. When they originate from well-managed land, forest products are renewable resources, and we can all benefit from them in myriad ways. But if these resources are harvested and traded improperly, they can be damaged or disappear entirely -- and right along with them goes the future of the world's plants, animals and people as well as our economic well-being. Any company that trades, manufactures or even simply purchases forest products needs to establish a supply chain that is transparent and demonstrates a commitment to sustainability and corporate responsibility. The ethical and environmental reasons are many, but here are a few additional motivations to consider: Preventing Disruptions – To avoid potentially costly disruptions to your supply chain, it is critical that you know where your forest products originate and ensure that these sources are stable, legal and do not cause environmental or social harm. If you do not take these steps, you could be faced with material shortages due to:
Avoiding Legal Action – In addition to preventing disruption to your supply chain, a sound purchasing policy can help you avoid costly penalties for sourcing goods improperly. In the United States, for example, Congress passed an amendment to the Lacey Act in May 2008 that prohibits the trade of illegally sourced plants or plant products -- including wood and items made with wood. Those who do not demonstrate "due care" in their procurement policies face a range of punitive actions, including stiff fines. The Action Plan on Forest Law Enforcement, Governance and Trade of the European Union (EU) encourages businesses to adopt purchasing policies that exclude illegal timber and promotes sound public procurement policies through voluntary agreements, but the EU has also contemplated regulations to govern the import and trade of these items. Reliability – As a company that sources forest products, you rely on steady access to these materials. When forest resources dwindle or their supply is restricted -- either because of their depletion or the regulations put in place to prevent it -- so too do your options. A sustainable sourcing plan ensures that you have reliable, reputable suppliers who will be there when you need them. Product Quality – In some cases, products that are made entirely of recycled materials can lack durability. By using some virgin material from responsible sources, a product can be improved without compromising its brand appeal or jeopardizing a company's commitment to sustainability.
Better Communication with Suppliers – Suppliers play a vital role in the success of a business, and SmartSource helps you actively engage them with training and support -- instead of communicating your new policies in a way that is exclusive or threatening. Not only will you be moving your company toward a more secure and sustainable future, but you'll also improve your relationships with suppliers and create a stronger supply chain. Protecting Your Reputation – There is nothing worse for a company than being the target of a campaign against its environmental or social practices; it can cripple your business and undermine all your hard-won marketing and public relations achievements. With a sustainable sourcing plan that is verifiable and transparent, your reputation is safe. Building Trust in Your Brand – While a negative campaign can cause great harm to a company, the flip side is also true. A public commitment to sustainability can help a business by:
Addressing Investor & Stakeholder Concerns – Increasingly, stakeholders and investors are concerned not just about a company's financial success but also about its environmental and social impacts. "Business as usual" is no longer acceptable. By creating a transparent supply chain and implementing socially and environmentally responsible policies, you demonstrate your company's accountability and its commitment to the so-called "triple bottom line."
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