PSC LIVE Singapore: Delving Into Sustainable Supply Chains
During a fireside chat at Procurement & Supply Chain LIVE Singapore, Eirik Andersen emphasised that sustainability in supply chains is not a short-term initiative but a long-term commitment.
He outlined the necessity of a clear, well-defined strategy that integrates sustainability into the organisation’s core business objectives rather than treating it as an isolated effort.
“A sustainability programme is not a sprint; it’s a marathon,” Andersen stated, highlighting the importance of executive-level support and a strong organisational culture that truly believes in sustainability.
He stressed that embedding sustainability into the corporate framework ensures consistency and accountability across all business operations.
A key driver for progress, Andersen explained, is the establishment of measurable goals backed by robust data.
He acknowledged the challenge of obtaining reliable sustainability data, particularly in areas such as climate impact, labour rights and ethical business practices.
However, he noted that fostering strong supplier relationships and maintaining ongoing engagement with supply chain partners can significantly enhance data collection and integrity.
Supplier engagement and the role of data
Data transparency is essential for driving sustainable supply chain practices and Andersen outlined how Telenor Procurement Company uses procurement leverage to encourage supplier compliance.
By including clear sustainability reporting requirements in supplier contracts, Telenor ensures accountability and progress towards climate targets.
Andersen shared that Telenor has publicly committed to ensuring that, by the end of 2025, 66% of its global supplier spend will be with suppliers who have set science-based climate targets.
“We are monitoring this consistently throughout our value chain,” he explained, reinforcing the company’s proactive approach to supplier engagement.
The conversation also touched on the challenges of addressing non-compliance among suppliers. Andersen was clear about the importance of difficult conversations, stating that sustainability commitments must be reflected in procurement decisions.
If suppliers fail to meet expectations, Telenor prioritises partnerships with those that align with its sustainability objectives.
“We're expecting them to support the global, climate and sustainability targets that we have because this is what our shareholders are measuring us on," he continued. "I think having those difficult conversations is really crucial.”
Educating suppliers and shaping industry standards
Beyond setting requirements, Andersen highlighted the need for education and support to help suppliers improve their sustainability performance.
Telenor regularly hosts webinars and seminars to raise awareness, guide suppliers on setting science-based targets, and explain why these initiatives are critical.
He also spoke about the broader impact of multinational corporations in shaping global sustainability standards.
Given regulations vary across regions, Telenor focuses on setting high internal standards that go beyond local legal requirements.
Andersen cited the company’s efforts in Asia to improve labour standards and combat child labour, demonstrating how global companies can drive meaningful change in emerging markets.
The future of sustainable supply chains
Looking ahead, Andersen identified several key trends that will shape supply chain sustainability, including geopolitical influences and the role of global corporations in setting standards beyond national policies.
He noted that large companies like Apple, Microsoft and Google are driving sustainability efforts that may surpass government regulations, particularly in regions where political agendas fluctuate.
On the role of technology, Andersen was measured in his response, acknowledging that, while digital solutions can improve data accuracy and efficiency, they do not replace the fundamental need for strong corporate values and sustainable business principles.
Essential diary dates for 2025
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- Procurement & Supply Chain LIVE: Sustainability | 5-6 March
- Sustainability LIVE: Net Zero | 5-6 March
- Procurement & Supply Chain LIVE Dubai | 29 April
- Sustainability LIVE Chicago | 28-29 May
- Procurement LIVE Chicago | 28-29 May
- Supply Chain LIVE Chicago | 28-29 May
- Procurement & Supply Chain LIVE London | 23-24 September
- The Global Procurement & Supply Chain Awards | 24 September
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