Five critical problems in Green Supply Chain Projects
Global research finds five critical problems companies encounter when managing their Green Supply Chain Projects
Following are the abridged findings from a recent global research:
- Potential for allegations of Green-washing
Most green supply chain projects are very vulnerable to the allegations of green-washing which leads to massive consumer and analyst backlash hurting the company immensely.
Companies need to clearly demonstrate that the actions taken by the project team result in reduction in carbon, in waste and environmental impact. Otherwise, lingering suspicions may lead to greater scrutiny and potential allegations of greenwashing.
- Insufficient Focus on Life Cycle Analysis
Aligned with point 1 is the trap of failing to start the project at its logical beginning during the product design phase. Without sufficient focus on the entire life cycle of the product, it is easy to lock in significant amounts of carbon, waste and environmental impact into the product design, which is very difficult to alter once the product is beyond the design stage.
- Excessive Focus on Carbon Management and Offset
This may be a surprise, but too much focus on carbon offsets leads to misaligned objectives and distraction from the overriding objective of green supply chain projects – reduction in overall environmental footprint. Again, allegations of green-washing are possible in this scenario, especially if other important environmental impacts are ignored.
- Limited Supplier and Customer Engagement
In the modern economy, the environ- mental footprints of most organisations are intimately interwoven with their customers and suppliers. Without sufficient engagement of key suppliers and customers, green supply chain management projects become limited and ineffectual.
- Approaching the Project from a Compliance Mindset
The easiest way to court allegations of green-washing is to approach the entire project from a compliance mindset. Many companies persist in meeting their Corporate Social Responsibility obligations by getting their suppliers to fill out a questionnaire on a regular basis and preparing a rosy report partly based on these. It is self-evident that a well run green supply chain project is far more than this.
The Green Supply Chain Project Management
Green Supply Chain Management is one of the fastest growing areas of activity in the overall Supply Chain Management and Corporate Social Responsibility sphere. The Boards, CEOs, and senior executive teams are all actively engaged in ensuring they are seen to be pro-actively shaping the agenda of the future.
To navigate the green supply chain management projects through these 5 hidden traps, Global Supply Chain Group has created a suite of packages for your business needs.
These packages can save your company:
- Millions of dollars of costs.
- Thousands of man-hours of green supply chain project time.
- From allegations of green-washing.
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