What is at stake?
Why is it important?
The choice of suppliers and service providers is pivotal in determining the social and environmental impact of your company.
This notably allows:
➡️ Better control over the value chain, thereby reducing its impact and mitigating risks associated with the company's operations;
➡️ Enhanced customer relations, by showcasing your ecological and social commitment;
➡️ Improved relationships with suppliers, fostering more sustainable connections based on shared values;
➡️ Engaging and raising awareness among partners about these issues.
89% of startups consider the ESG involvement of a partner in their selection criteria. (Source: EDHEC Entrepreneurs Study, 2022)
3 key steps to take action
1️⃣ Selecting Suppliers/Partners Based on Responsible Criteria
- Prioritize partners based on their commitments and values.
- Inquire whether the partner has conducted their carbon footprint assessment.
- Prefer local partners if it doesn't generate third-party negative impact.
- Consider making choices based on labels/certifications.
- Contact current client references to ascertain the reliability of their partnership (quality, adherence to deadlines, responsiveness, commitment fulfillment, etc.).
Choosing a partner (a production workshop, a stylist, a weaver, a collaboration for a collection, etc.) is a commitment for the long term. To ensure that they uphold my company's values, I rely heavily on instinct and gut feeling. However, I also look at their certifications, notably B Corp, their commitment to ethics, and their environmental responsibility.
Valentine Robin, Founder of AKHO - Sustainable and Circular Clothing Brand
2️⃣ Formalizing Commitments in a Responsible Procurement Policy
- Conduct a diagnosis of current purchasing practices.
- List the social and environmental criteria to assess with your suppliers; these are the selection conditions for a partner.
- Draft a charter outlining your responsible procurement policy, to be signed by your suppliers.
The supplier selection charter is not meant to establish definitive selection criteria, but rather to ensure that key ESG-related questions are consistently addressed. Entrepreneurs also have the responsibility to raise awareness within their ecosystem about these crucial matters, ensuring a sustainable and responsible supply chain.
Bettina Denis, Head of Sustainability & ESG at Revaia, leading European sustainable growth investor.
3️⃣ Train the Teams Interacting with Suppliers/Partners (Buyers, etc.)
📚 Resources and further reading
⚖️ Supplier Relations and Responsible Procurement Charter (Government, 2021)
📖 How to Choose Your Suppliers? (Bpifrance, 2022)
📝 Responsible Procurement Policy Template (Apiday)
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