Greening the Supply Chain: Sustainability Beyond Your Factory Gates

Sustainability Doesn’t Stop at Your Factory Gates

So your factory is now energy-efficient and green – that’s great. But what about all the parts and materials coming into your factory?

For many manufacturers, a large portion of their carbon footprint comes from the supply chain.

The factories that make your raw materials or components might still rely on high-emission energy sources.
To truly advance SDG 13 (Climate Action) and SDG 7 (Clean Energy), manufacturers must look beyond their own operations.

How to Green Your Supply Chain

The first step? Know your suppliers.

More companies are now asking suppliers about their energy use and carbon footprint.
Some manufacturers set sustainability requirements, such as:
- Using a percentage of renewable energy
- Meeting energy efficiency targets

Big Business Examples

Walmart’s supply chain initiative: Aims to help suppliers cut one gigaton (one billion tons) of CO₂ collectively.
The strategy? Small improvements across many suppliers lead to a massive overall impact.

How Your Company Can Contribute

1. Share Best Practices

If your factory installed solar panels and saved money, share your experience with suppliers.
Demonstrating cost savings can motivate suppliers to adopt green technology.

2. Collaborate on Energy Efficiency

Conduct joint energy audits to identify inefficiencies.
Host workshops on sustainable practices.

3. Provide Incentives for Green Investments

Some manufacturers offer financing or incentives for suppliers to:
- Upgrade to energy-efficient machinery
- Transition to renewable energy sources

The Bigger Picture: Climate Action is a Team Effort

A single factory can be carbon neutral, but if its supply chain runs on fossil fuels, sustainability efforts fall short.

Why Greening the Supply Chain Matters

✅ Larger Climate Impact – Extending sustainability beyond your facility magnifies results.
✅ Risk Reduction – A cleaner supply chain is less vulnerable to future carbon regulations.
✅ Stronger Business Resilience – Sustainable suppliers ensure long-term stability and efficiency.