Everyone's talking about sustainable supply chains – but do we all mean the same thing?

By Gavin Bowen-Ashwin

Hospitality supply chains are complex. The meaning of sustainability in supply chains even more so.

At 4C Associates we define supply chains in hospitality as the farm to fork journey – the end-to-end source of supply through from initial origin to restaurant. A more complex question, however, is to answer what it means to have sustainable supply chains.

Traditionally, ensuring supply chains were sustainable meant that they have a sustainable source of supply. Sustainability then moved on to being ‘green' and making sure the impact on the environment is minimal and responsible. Most recently the focus has shifted towards the journey to net zero and carbon reduction.

All these aspects show us that there isn't a universal definition, however for us sustainability is all about responsible business strategies that focus on people, planet, and profit. When businesses say that are focused on sustainable supply chains, we would expect them to work towards supply chains that are fair and responsible to their people, financially balanced and with a positive impact on the environment.

There are many areas where businesses can make a difference, including staff wellbeing and their approach to diversity, equity, and inclusion. The industry also plays an important part in waste management and water usage, where significant value can be added and cost can be saved.

The one area where we see most focus recently with our clients is ‘planet', with operators such as Nando's or Burger King making carbon reduction target pledges. To deliver on these pledges, they need to work with their supply chains to reduce the scope 1, 2 and 3 emissions which requires a clear strategy on how to address this within the given time scale.

Scope 1 and 2 relate to their restaurants and outlets, and the energy source they choose to procure. However, scope 3 emissions are those made by their suppliers and therefore, when an organisation makes the pledge to reduce emissions what they are really saying is they are going to work collaboratively with their suppliers throughout the supply chain to reduce carbon and report on progress.

Previously operators have typically been addressing scopes 1 and 2, but now attention is shifting to scope 3. Leaders in this space are taking the proactive approach, working with their suppliers to understand their current carbon footprint and to achieve the reduction necessary in an audible way.

This collaborative approach moves away from the typical price focused, cost-out mentality which buying and procurement teams have typically used and been required to deliver, meaning the relationship and the way organisations work with suppliers has never been more important – but is it a skill that your procurement team have?

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