A new report by the World Resources Institute (WRI) has suggested that people are often left out of corporate sustainability strategies, with just 12% of strategies having at least one goal focused on people in their supply chains.
The WRI examined more than 1,000 sustainability goals set by nearly 700 of the world’s largest companies and found that while most have put in place targets related to climate and nature, people are often left out of the story – just 3% have set commitments to improve working conditions or invest in skills development.
Fit for the future
“If you are building a supply chain for the future, you can’t just cut emissions — you have to factor in the billions of people doing the work,” commented Eliot Metzger, WRI’s director of sustainable business and innovation.
“Right now, most large companies are overlooking the needs of the people essential to transforming their supply chains. This not only undermines companies’ sustainability targets but also the stability of their supply chains and their reputation.”
‘Elephant in the Boardroom’
According to the WRI‘s study, entitled Elephant in the Boardroom: People Are Missing in Corporate Supply Chain Goals, people-centred supply chain goals could focus on areas such as improving workplace safety through training and equipment, providing upskilling programmes, and ensuring fair pay and predictable timetables.
‘These actions can directly improve worker well-being while strengthening the resilience of the supply chain,’ the WRI noted.
It also found that around 90% of supply chain goals set by corporates ‘force’ smaller suppliers to comply with sustainability objectives without offering the support needed to meet them. It advocates for a partnership-based approach to emphasise mutual value.
‘This would involve larger companies engaging with suppliers to understand concrete challenges — such as financing equipment upgrades or training and retaining skilled workers — and then designing goals that provide the necessary support for suppliers to transition toward more sustainable operations,’ the WRI added. Read more here.
Read more: Emerging economies ready to step into climate leadership role: WRI
