Companies’ contribution to sustainability through global supply chains

Global supply chains play a critical role in many of the most pressing environmental stresses and social struggles identified by the United Nations’ Sustainable Development Goals (SDGs). Responding to calls from the global community, companies are adopting a variety of voluntary practices to improve...

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Bibliographic Details
Published in:Proceedings of the National Academy of Sciences - PNAS 2018-02, Vol.115 (9), p.2072-2077
Main Authors: Thorlakson, Tannis, de Zegher, Joann F., Lambin, Eric F.
Format: Article
Language:English
Subjects:
Environmental management
Environmental stress
Globalization
Management reports
Private sector
Social Sciences
Sourcing
Studies
Suppliers
Supply chain management
Supply chains
Sustainability
Sustainable development
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Summary:Global supply chains play a critical role in many of the most pressing environmental stresses and social struggles identified by the United Nations’ Sustainable Development Goals (SDGs). Responding to calls from the global community, companies are adopting a variety of voluntary practices to improve the environmental and/or social management of their suppliers’ activities. We develop a global survey of 449 publicly listed companies in the food, textile, and wood-products sectors with annual reports in English to provide insight into how the private sector contributes to advancing the SDGs via such sustainable-sourcing practices. We find that while 52% of companies use at least one sustainable-sourcing practice, these practices are limited in scope; 71% relates to only one or a few input materials and 60.5% apply to only first-tier suppliers. We also find that sustainable-sourcing practices typically address a small subset of the sustainability challenges laid out by the SDGs, primarily focusing on labor rights and compliance with national laws. Consistent with existing hypotheses, companies that face consumer and civil society pressure are associated with a significantly higher probability of adopting sustainable-sourcing practices. Our findings highlight the opportunities and limitations of corporate sustainable-sourcing practices in addressing the myriad sustainability challenges facing our world today.
ISSN:0027-8424
1091-6490
DOI:10.1073/pnas.1716695115