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Performance: Supply Chain

Companies will require their suppliers to meet the same environmental and social standards as the company has established for itself. Companies will establish sustainable procurement criteria, catalyze improved supplier performance, and facilitate disclosure of suppliers’ sustainability information.

CERES ROADMAP VISION

Companies will require their suppliers to meet the same environmental and social standards as the company has established for itself. Companies will establish sustainable procurement criteria, catalyze improved supplier performance, and facilitate disclosure of suppliers’ sustainability information.

To become truly sustainable enterprises, companies must look beyond their direct operations and deep into their supply chains. A company can reduce its carbon footprint, water use and protect the rights of its workers, but if it sources products and materials from suppliers who perform poorly, its overall sustainability efforts are fundamentally undermined.

Companies can significantly influence the behavior of suppliers and have a key responsibility in driving sustainability throughout the global economy. As customers, companies can establish the conditions for future business. They can insist that suppliers meet international human rights standards and demonstrate environmental responsibility, or risk losing their contracts. They can also engage with their suppliers, either alone or in collaboration with other companies doing business with the same suppliers, to help suppliers improve sustainability performance through technology and training.

For this report Ceres and Sustainalytics evaluated all 613 companies on supply chain practices, including: