4 Advantages of Embracing a Green Supply Chain!

Green Supply Chain

As the world becomes increasingly concerned with environmentalism, businesses are looking for easy ways to go green and reduce their carbon footprint, especially in their supply chains. It’s not surprising if you consider that according to McKinsey & Company, supply chains are responsible for more than 90% of a company’s environmental impact. 

There are many ways to make your business more sustainable. From improving your bottom line to reducing your environmental impact, making the switch to a sustainable supply chain can have a host of benefits.

In this blog post, we’ll explore four advantages of sustainable supply chains and why adopting environmentally friendly practices in your business is important.

1. Improve Your Bottom Line

Adopting environmentally friendly practices and a green Supply Chain in your business can reduce costs and increase efficiency. For example, investing in energy-efficient appliances or solar panels can save you money on your energy bills. 

There are a few ways that a green Supply Chain can save your business money:

  • Reduce your energy consumption: This can be done in a variety of ways, such as upgrading to energy-efficient appliances and light bulbs, insulating your building, and making sure that your HVAC system is properly maintained. 
  • Reduce waste and save on materials costs: Another way that going green can save your business money is by reducing the amount of waste you produce. This can be done by recycling and composting materials instead of sending them to the landfill. 
  • Increase employee productivity and morale: Going green can also positively impact your employees’ productivity and morale. Research has shown that employees who work in green buildings are more productive than those who work in traditional office buildings. 

2. Sustainability Boosts Brand Image

Consumers are increasingly interested in buying from brands that have a positive impact on the environment. Adopting sustainable practices can help improve your brand image and make you more attractive to consumers. Practices that can help your business go green include:

  • Recycling or repurposing materials whenever possible.
  • Getting involved in local environmental initiatives, such as community cleanups or tree planting events.
  • Minimize the use of paper products by relying on digital communications and documentation whenever possible.
  • Donate or recycle any materials that are no longer needed in your business operations, such as outdated electronics or office supplies.

3. Go Green on the Road

Fuel is the second most expensive item for transportation companies. Transportation, which now relies nearly entirely on fossil fuels, accounted for approximately 26% of global CO2 emissions in 2018. 

Switching to alternatively fueled vehicles, consolidating shipments, and using sustainable shipping whenever possible are all great ways to go green with your business’s transportation plan. However, easy does not mean free. Your business may need to make an initial investment to have a green Supply Chain, but the long-term benefits are clear. You (and your business) will be doing your part to protect the environment, and you’ll also save money on fuel costs. 

4. Encourage Employees To Use Sustainable Practices

By setting an example in your own business, you can encourage your employees to use sustainable practices in their everyday lives. This could include things like recycling, conserving water or electricity, carpooling, or taking public transportation. 

In today’s technology-conscious world, your employees can use various apps to encourage, track and assist them with these practices. Notable apps include: 

  • Ailuna: A sustainability engagement app that makes it easy for users to find sustainable actions they can take in their everyday lives, track their progress, and earn rewards for taking positive steps.
  • Olio: Olio is a free app that helps you save food and reduce waste. Olio connects people who have surplus food with those who need it. This could be food that’s about to go off, or food that’s been made but not eaten. Olio also helps businesses to donate their surplus food to charity, instead of throwing it away.
  • Ecosia: Ecosia is a search engine that plants trees. Ecosia is powered by Microsoft Bing and donates at least 80% of its ad profits to tree-planting initiatives in the Amazon rainforest.

Final thoughts

Sustainability is a growing concern for businesses, and with good reason. Going green has many advantages, from reducing your carbon footprint to improving your bottom line. We’ve looked at four of the most important reasons to make sustainability a priority and create a green Supply Chain.

Are you ready to get started? If so, check out our list of 60 ways saving money can be environmentally friendly. With a little effort, you can make your business more sustainable and benefit both the environment and your bottom line.

Green Supply Chain article and permission to publish here provided by Brennan Martin. Originally written for Supply Chain Game Changer and published on October 24, 2022.

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