Companies with the Greenest Supply Chains
Article
For the third consecutive year, Levi Strauss & Co. was ranked number one in the CITI report for the textile industry category and overall.
Going green can be a driver for value and success in business. Companies such as Apple, Dell, Levi’s, Adidas and Inditex have already started their journey towards a green supply chain. These companies, along with Cisco, Puma, Nike, VF, Foxconn, Primark and New Balance are the highest scoring out of 684 brands according to the Corporate Information Transparency Index (CITI)dynamically assessing brands on the environmental management of their supply chain in China. (Data last updated October 2023).
CITI is jointly developed by the Institute of Public & Environmental Affairs (IPE) and the Natural Resources Defense Council (NRDC). The CITI assessment uses government supervision data and public information published by brands to make an evaluation. Scores are updated continuously throughout the year to reflect any response to pollution issues or new sustainability initiatives.
Sustainability in the supply chain allows a company to be more knowledgeable about their network of organizations, people, activities, companies and resources involved in producing, handling and distributing their products.
3 ways to build green supply chains
- Creating methods for green procurement
Apple tops the CITI table year after year due to the high standards upheld in its responsible procurement programme. Right from the product design, development and supplier engagement stages, Apple ensures that the partners it works with can also commit to their standards and provide full transparency. Suppliers are chosen based on their materials, processes and equipment used to make the products, as well as their ability to disclose environmental impact information. Apple’s corporate operations have been carbon neutral since 2020 with further aims to be carbon neutral across their entire footprint by 2030. To make this happen, they are in the process of transitioning the entire supply chain to 100 per cent renewable energy.
- Brands working together towards greener supply chains
A large part of building more sustainable supply chains comes down to transparency, collaboration and communication between the brands and suppliers. Some brands hardly interact with their supply chain or other brands within their industry which tends to lead to poorer environmental improvements. On the other hand, some brands with shared suppliers work together for the sake of environmental protection and minimizing emissions. One example is Saintyear Holding Group Co. Ltd, a large-scale textile printing and dyeing enterprise that supplies recognized domestic and international brands. Its first pollution violation was detected by the clothing retailer Uniqlo, which was obligated to issue a public explanation regarding Saintyear’s wastewater and indirect discharge. Other brands such as Gap, H&M, M&S and Nike joined the efforts to push Saintyear to collaborate with environmental protection organizations. Saintyear also communicated with the IPE to seek more sustainable solutions.
- Multi-stakeholder involvement to encourage social stability
For the third consecutive year, Levi Strauss & Co. was ranked number one in the CITI report for the textile industry category and overall. LS&Co. has built a holistic sustainability strategy that ensures that not only its environmental targets within the supply chain are met, but the impact is also seen by communities too. They focus on three pillars: climate, consumption and community. The brand states ‘We aim to lead in transparency and impact, to accelerate the circular economy and to increase collaboration in the apparel industry by inspiring employees, communities and value chain partners to join the journey.’
The companies commended by CITI see the value of supply chain sustainability and demonstrate that it is possible to achieve green supply chains.
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