Patagonia & Siemens: Leading in Supply Chain Sustainability
Sustainable supply chains are now central to how global companies operate.
For businesses, supply chain sustainability is about minimising environmental and social impact while maintaining efficiency and reliability.
The EU's Corporate Sustainability Due Diligence Directive (CSDDD) which requires large companies to identify and address human rights and environmental risks in their supply chains. Alongside this, the Corporate Sustainability Reporting Directive forces businesses to disclose information on environmental, social and governance issues.
Why sustainability matters in supply chains
The Carbon Disclosure Project reports that supply chains account for up to 11.4 times a company’s direct emissions, representing over 90% of its total footprint.
IBM notes that sustainable supply chain management reduces carbon emissions and waste, helping businesses cut their impact on the environment. At the same time, it can lower operating costs by reducing energy use and minimising waste streams, which improves profit margins.
Beyond efficiency, sustainability brings reputational advantages, as IBM points out that promoting a sustainable supply chain strengthens brand image at a time when stakeholders and consumers expect visible action.
It also helps prevent unethical labour practices and improves employee conditions.
Partner impact
Sedex positions itself as a partner for sustainability and ethics with a mission to make global supply chains more responsible.
It provides tools that help companies understand performance, reduce risks, comply with legislation and build trust with suppliers.
Steven Esom, Chair of the Sedex Board, says: "Over the last 20 years, Sedex has provided businesses with the tools to build ever-greater knowledge of the places, people and practices in their supply chains.
“Our members now look to us to aid them across the wider sustainability agenda."
Elsewhere, Carbmee takes a technology-driven approach, focusing on helping emissions-intensive industries measure and reduce carbon output with the long-term aim of achieving net zero by 2050.
It works with firms such as Deloitte, Ecovadis and EY to deliver carbon management tools.
Christian Heinrich, Co-Founder of Carbmee, explains: "We work closely with consultancies who are using us for their customers as well as from a sustainability and procurement perspective."
These partners illustrate how external expertise and digital tools are increasingly vital in guiding companies through sustainability challenges in their supply chains.
How companies act on supply chain sustainability
Siemens shows how a large industrial business applies circularity to its supply chain, aiming to minimise resource use, incorporate more secondary materials and strengthen resilience.
It also applies its software to design circular products and create value through new business models.
Christina Iosifidou, Head of Sustainability Grid Technologies at Siemens Energy, explains: "For a long time, the primary focus was on performance efficiency, which still holds a very high priority.
"However, we must now also consider material waste and the environmental impact throughout a product’s life cycle, because we’re seeing enormous investments in grid extension – a doubling of the global grid length – with assets that will operate for more than 30 years, resulting in a significant embodied carbon footprint."
Sustainable clothing icon Patagonia assesses suppliers across areas such as water use, energy, air emissions and waste.
It prioritises renewable electricity, energy efficiency and lower-carbon fuels in manufacturing, while suppliers are recognised for environmental excellence through better practices.
Yvon Chouinard, Founder of Patagonia, says: "It’s been a half-century since we began our experiment in responsible business. If we have any hope of a thriving planet 50 years from now, it demands all of us doing all we can with the resources we have.
“As the business leader I never wanted to be, I am doing my part. Instead of extracting value from nature and transforming it into wealth, we are using the wealth Patagonia creates to protect the source.
“We’re making Earth our only shareholder. I am dead serious about saving this planet."
From regulatory frameworks to corporate programmes, sustainable supply chains are now central to both compliance and competitiveness.
For companies such as Siemens, Patagonia, Sedex and Carbmee, supply chain practice is where environmental impact, social responsibility and financial performance come together.
