There is increasing awareness and recognition that supply chain sustainability is a critical component of corporate sustainability (CS).
Companies have found that the weakest link in their supply chain could adversely affect their reputations and share prices when its vendors are caught with violations to sustainability practices. This essentially mean companies could no longer claim to practise CS and at the same time contract out their CS responsibilities to external suppliers. But there are challenges to monitoring the entire supply chain even if companies are committed to enforcement of sustainable developmental goals (SDGs). With the advance of digitisation, it has enabled the successful implementation of SDGs through increased transparency, traceability and data management throughout value chains.
The shift in attitude and technology advance mark an important milestone towards enhancing corporate sustainability through strengthening supply chain sustainability. There are benefits to be reaped from such an approach too. Contrary to mainstream perception that CS practises increase operating costs, the adoption of SDGs have actually lowered energy and material costs, improved competitive advantage, improved company management and better innovation of products and services. By adopting supply chain sustainability practices, corporations can build resilience in their supply chains, gain competitive advantage, as well as ensure their long-term survival.
Alex Capri, Senior Research Fellow at the Centre for Governance, Institutions and Organisations (CGIO), helms the global value chains and sustainability research initiative at CGIO. He is also an expert on international trade strategies, cross border risk management, ASEAN Economic Community (AEC), technology and trade facilitation, taxation and global value chains and sustainability, amongst other research topics.
More details and publications by Alex Capri is available below.
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