Sustainability

In view of increasing legal requirements, sanction regulations and heightened public interest, companies are strategically strengthening their focus on sustainability. Under the Supply Chain Act or the new EU CSR Directive, it is therefore not just a matter of a company’s direct environmental impact, but also of Scope 3, i.e. the indirect emissions along the supply chain. Hence, if companies seek to achieve a net-zero objective, their efforts to reduce emissions must also focus on Scope 3. We discuss how environmental aspects can be integrated into the SCM strategy in order to advance the decarbonization of the entire value creation process.

Not only are companies constantly exposed to new challenges in their operating business – they also need to remain agile with regard to increasing sustainability criteria. This enhances the willingness to rethink and adapt supply chain processes: Green logistics aims to integrate environmental sustainability into all phases of logistics activities and thus makes a positive contribution to environmental protection. In our latest article on the blog, we discuss what options companies have to implement sustainability goals along their supply chain and what challenges need to be mastered in the process.

In view of changing customer expectations and legal requirements such as the German Supply Chain Act or the new EU CSR Directive, companies are increasingly responsible for keeping environmental impacts and risks as low as possible when purchasing products or services. For sustainable procurement, the ISO 20400 standard is particularly helpful, as it addresses aspects of social and economic sustainability in addition to environmental protection. We have summarized the criteria and benefits of the ISO standard and explain what role the digitally designed supply chain plays in meeting sustainability criteria.

The planned EU Corporate Sustainability Due Diligence Directive (CSDDD) stems from a proposal by the European Commission. The legislation is intended to help reduce environmental decay and human rights violations in the globalized economy. If the CSDDD is adopted, all EU member states will be obliged to transpose it into national legislation and to amend existing provisions. So, who is affected by the so-called EU Supply Chain Act, what does it contain and how can companies be supported in its implementation?

Ever more companies are placing their strategic focus on meeting sustainability criteria: After all, in addition to the increased requirements on the customer side, there is also a growing number of legal regulations that require ecologically justifiable and resource-preserving actions. Companies that rely on environmental management in accordance with ISO (International Organization for Standardization) norm 14001 therefore have a strategic advantage. In our latest blog article, we discuss the added value that is associated with certification and which criteria are relevant.

Supply chain laws, compliance requirements, the new EU CSRD and changing consumer behavior – in view of a new awareness of sustainability and against the backdrop of legal regulations, acting in an ecologically responsible manner is increasingly becoming a strategic corporate goal. An important factor in this context is the reduction of CO2 emissions: Yet, how high are the emissions generated during the transport and delivery of goods? Where is potential for optimization in order to make transports more efficient and environmentally friendly? In this interview, Tobias Ruscheweyh, Head of Branch Group Service and Lead Sustainability & Risk Management at Hermes International, explains how companies can use the 3-phase model of Hermes International, a business unit of Hermes Germany, in order to reduce and offset their CO2 emissions when transporting goods.

Resources are finite and unequally distributed on a global scale. Thus, a shortage of or difficult access to raw materials can result in economic risks such as production bottlenecks and rising prices. In order to minimize procurement risks, conserve resources and meet increasing sustainability requirements, the reuse and remanufacturing of products and materials in a Circular Economy is becoming increasingly important. In our most recent blog post on Circular Economy, we discuss the infrastructure that is needed in order to transform a linear supply chain into a sustainable supply cycle and how logistics can support this process.

Compliance is a key aspect in the logistics environment: It serves to prevent risks and thus to protect companies and their employees. As the topics of sustainability and due diligence are gaining momentum, companies in the B2B and B2C sectors should prepare for increasing transparency requirements along the entire supply chain. We highlight the challenges and benefits of compliance management and explain the technologies that support it.

Ecological responsibility and the use of digital technologies are currently among the key trends in supply chain management. According to the 18th Hermes Barometer "Trends in Supply Chain Management "*, this view is held by around two-thirds of a total of 150 logistics managers from German companies surveyed. For greater supply chain resilience, the respondents also rely on stable supplier relationships and the establishment of an efficient risk management. The basis for the latter is a detailed and transparent data overview – however, companies still see potential for optimization in this context.

Companies are increasingly responsible for ensuring that ethical and sustainable standards are complied with along the entire supply chain. The new EU Corporate Sustainability Reporting Directive (CSRD) clearly regulates who is obliged to submit a sustainability report and what content must be published in accordance with binding standards. While our first blog post on the new EU Sustainability Reporting Directive dealt with the companies affected, deadlines and changes, in Part 2 we delve into the challenges companies face and explain why they definitely benefit from a sustainability report despite the significant effort that is involved in this context.