{"id":20088,"date":"2024-10-01T11:39:35","date_gmt":"2024-10-01T09:39:35","guid":{"rendered":"https:\/\/www.etifor.com\/en\/?p=20088"},"modified":"2026-10-05T15:12:48","modified_gmt":"2026-10-05T13:12:48","slug":"sustainable-supplpy-chain","status":"publish","type":"post","link":"https:\/\/www.etifor.com\/en\/updates\/sustainable-supplpy-chain\/","title":{"rendered":"Sustainable supply chain: why it is critical to the future of business<\/span>"},"content":{"rendered":"

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What is meant by a sustainable supply chain?<\/b><\/h2>\n

The term “supply chain” refers to a product or service’s entire production and distribution chain, encompassing various stakeholders’ activities throughout the production cycle. Improving the sustainability of a supply chain<\/strong> is one of the most impactful strategies companies can adopt to generate positive outcomes. Supplier chains determine 90% of the environmental impact<\/strong> of production processes.<\/span><\/p>\n<\/div>

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What elements make a supply chain sustainable?<\/b><\/h3>\n

To be sustainable, a supply chain must integrate good practices that generate positive social, economic, and environmental impacts<\/strong> throughout the entire lifecycle of products and services. Increasingly, various drivers\u2014particularly regulatory ones\u2014are pushing many companies to enhance the sustainability of their supply chains.<\/span><\/p>\n<\/div>

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The motivations and benefits of a sustainable supply chain<\/b><\/h2>\n

Several motivations can prompt companies to embark on paths to improve the sustainability of their supply chains. Firstly, a strong internal corporate culture<\/strong> can serve as the main driver in reducing the negative impacts of their supply chains. A solid commitment to sustainability can also improve employee motivation and productivity.<\/strong><\/span><\/p>\n

Another motivation may be linked to the expectations of the various supply chain stakeholders.<\/strong> Ensuring a sustainable supply chain improves a company’s reputation among its partners and fosters long-term, profitable collaborations with suppliers, particularly in contexts where relationships with local communities are fundamental.<\/strong><\/span><\/p>\n

Being part of a sustainable supply chain that complies with international standards, especially in sectors like agrifood and textiles, allows companies to position themselves on the market distinctively and advantageously,<\/strong> gaining a better reputation among final consumers. Over time, consumers have become increasingly attentive to these issues and are willing to recognize greater value in a product or service that adheres to such principles. <\/span><\/p>\n

According to the study “Dieci anni di CSR: un bilancio sul futuro,<\/a>” 2 out of 3 Italians say they are willing to pay more for a sustainable product,<\/strong> and nearly half of the population wants to understand whether a company is genuinely committed to sustainability.<\/span><\/p>\n

Sustainable supply chain management can also increase efficiency <\/strong>in raw material procurement, reduce energy, water, and natural or synthetic material costs, and minimize health and worker safety risks.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>

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The importance of a traceable and monitored supply chain in light of recent European legislative initiatives<\/b><\/h2>\n

Sustainable supply chain management can significantly reduce negative impacts, particularly environmental ones, and contribute to combating the climate crisis. Recognizing this, in recent years, the European Commission has introduced several key legislative initiatives<\/strong> to encourage companies to analyze their supply chains and carefully select their suppliers thoroughly. These initiatives particularly target agro-food and textile supply chains.<\/strong><\/span><\/p>\n

Among these is the European Deforestation-free Products Regulation<\/a> (EUDR), which, starting from December 30, 2024, will require importing and processing companies of essential agroforestry products\u2014such as soy, cocoa, wood, and coffee\u2014to conduct due diligence to ensure supply chain traceability and that the products sold are legal and not linked to deforestation<\/a><\/strong> or forest area degradation.<\/span><\/p>\n

The European Ecodesign for Sustainable Products Regulation<\/a> (ESPR) will require many European companies\u2014especially those in textile supply chains\u2014to design products that are circular and durable<\/strong> and equipped with a digital passport<\/strong> that tracks production stages and provides consumers with helpful information for maintaining the product by December 31, 2030.<\/span><\/p>\n

Similarly, the Corporate Sustainability Due Diligence Directive<\/a> (CSDDD), effective from July 2027, will require large companies to identify and manage negative impacts on human rights and the environment in their operations<\/strong>, controlled and linked enterprises, and supply chains.<\/span><\/p>\n<\/div><\/div><\/div><\/div><\/div>

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The need for not only sustainable but also transparent supply chains<\/b><\/h2>\n

Given the growing number of corporate socio-environmental communication initiatives related to “sustainable supply chains” or “green supply chains,” the European Commission has published key regulations to prevent greenwashing.<\/strong><\/span><\/p>\n

For instance, the Corporate Sustainability Reporting Directive<\/a> (CSRD), which came into effect in January 2024, will require medium-sized non-listed companies to provide detailed sustainability reports<\/strong> based on environmental, social, and governance (ESG) metrics starting in 2025.<\/span><\/p>\n

The Green Claims Directive<\/a>, proposed and approved by the Commission in March 2023, addresses the communication of product sustainability levels<\/strong> and company impacts. It requires companies to substantiate their claims about the environmental<\/strong> aspects and performance of their products and production processes using robust, verifiable, and scientifically valid methods.<\/span><\/p>\n<\/div>

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Want to find out how to make your supply chain free from deforestation?<\/h3>

Discover how<\/p><\/div><\/div><\/a><\/span><\/div><\/div><\/div><\/div><\/div>

<\/div><\/div>

How to make the supply chain more sustainable? The case of cocoa<\/h2>\n

Cocoa is one of the crops responsible for a significant portion of global deforestation<\/strong>, especially in tropical areas such as West Africa and South America. Growing demand has driven the conversion of vast forest regions into cocoa monocultures,<\/strong> with devastating consequences for biodiversity and local ecosystems.<\/p>\n

One example of a sustainable cocoa supply chain is cultivation based on agroforestry principles. This approach involves the integrated management of cocoa crops and native tree species, which help maintain the balance of the local ecosystem<\/strong> and preserve biodiversity<\/a>. For cocoa plantations to be defined as sustainable, they must meet precise parameters, such as reducing the use of pesticides and chemical fertilizers, improving working conditions for producers, and ensuring traceability throughout the supply chain.<\/strong><\/p>\n

In addition, cocoa cultivation integrated with agroforestry can significantly improve local communities’ well-being<\/strong>, ensuring a fair and sustainable income for farmers and preserving forest areas from being degraded or converted into intensive monocultures. This approach protects forests and facilitates compliance with environmental and social standards<\/strong> required by European regulations, such as the EUDR<\/a>.<\/p>\n<\/div>

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How can Etifor help make your supply chain sustainable?<\/b><\/h2>\n

With its EMMA<\/a> approach, Etifor can support companies<\/strong> in making their supply chains more sustainable and address deforestation risks. This phenomenon represents the main threat to global biodiversity and is one of the most significant causes of the current climate crisis.<\/span><\/p>\n<\/div>

<\/div><\/div><\/div><\/div><\/div><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"

European regulations and new challenges for a sustainable supply chain: how to prepare for change<\/p>\n

 <\/p>\n","protected":false},"author":8,"featured_media":20089,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[64],"tags":[],"goal":[],"funder":[],"market":[],"area":[],"class_list":["post-20088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-updates"],"acf":[],"yoast_head":"\nSustainable supply chain: why it is critical to the future of business<\/title>\n<meta name=\"description\" content=\"Learn what makes a supply chain sustainable and how to reduce environmental impacts and comply with European regulations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.etifor.com\/en\/updates\/sustainable-supplpy-chain\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta 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