What are the best practices for sustainable SCM reporting?
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Sustainable supply chain management (SCM) reporting is a key way to communicate your environmental, social and economic impacts to your stakeholders. It can also help you identify risks, opportunities and areas for improvement in your SCM processes. But how do you create a credible, transparent and useful report that meets the expectations of your audience and aligns with your sustainability goals? Here are some best practices to follow.
Before you start writing your report, you need to clarify what aspects of your SCM you want to cover and why. This will help you determine the relevant topics, indicators and standards to use. For example, you may want to report on your carbon footprint, water consumption, waste management, human rights, labor practices, supplier diversity, innovation or customer satisfaction. You should also define your purpose and objectives for reporting, such as demonstrating compliance, enhancing reputation, engaging stakeholders, improving performance or creating value.
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Samuel Ajiboyede
Climatetech | Fintech | AI Expert | RealEstate | Branding | Investor | Author & Host of 'The Entrepreneur's Diary'
SCM reporting isn't just numbers; it's a path to a greener, fairer, and more responsible future. Sustainable SCM reporting drives positive change. Track environmental, social, and customer metrics to reduce your footprint, uphold ethical standards, and promote diversity. Reporting serves purposes like compliance, reputation building, stakeholder engagement, and value creation. Join the sustainability movement. #SustainabilityWins 🌍🌱🌟
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Gokul Shekar
TEDx Speaker | Public Speaker | Author | Climate Change Advocate | Sustainability | Renewable Energy | ESG | Carbon Neutrality | Carbon Credit Projects | Carbon Credit Partnerships
Before creating a sustainable supply chain management (SCM) report, it's essential to define the specific aspects of SCM to cover and the purpose for reporting. This involves selecting relevant topics, indicators, and standards, such as carbon emissions or labor practices, aligning with your objectives, whether they are to demonstrate compliance, enhance reputation, engage stakeholders, improve performance, or create value. Additionally, perform a materiality assessment, ensure alignment with your overall strategy, set goals for performance improvement, consider stakeholder expectations, strive for a balanced report that encompasses environmental, social, and economic dimensions, thus laying the foundation for a SCM sustainability report.
There are many frameworks and guidelines available to help you structure and present your report, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the International Integrated Reporting Council (IIRC) or the Task Force on Climate-related Financial Disclosures (TCFD). You should choose the one that best suits your industry, context and audience. You should also decide on the format of your report, such as a standalone document, a web-based platform, an interactive dashboard or a combination of these.
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Mohammed Al-Zahrani
Decarbonization strategy / Sustainability strategy / Leadership /ESG focus / Sustainability framework (ESRS,TCFD,GRI,CPD,ISSB) / Process Safety Managment SME
The most important things to start with and in order is:- - Define your scope and boundaries - Select your frame work and start an awareness with competence mapping at each function to increase knowledge, know how and reason - Build your corporate standards including governance, RACI , targets and qualitative requirements - Build a road Map to get there with each stakeholder ( this may include strategic initiatives with short - Mid and even long term plans ) Note:- A great enabler is to push for digitalizing some of the needed systems and indicators to allow for proper governance, visibility, audibility and analysis.
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Gokul Shekar
TEDx Speaker | Public Speaker | Author | Climate Change Advocate | Sustainability | Renewable Energy | ESG | Carbon Neutrality | Carbon Credit Projects | Carbon Credit Partnerships
Indeed, there is a variety of frameworks and guidelines to assist in structuring and presenting your sustainable supply chain management (SCM) report. Notable options include the GRI, SASB the International Integrated Reporting Council (IIRC), and the Task Force on Climate-related Financial Disclosures (TCFD). The selection should be based on what aligns best with your industry, specific context, and your target audience. Additionally, consider the format of your report, whether it's a standalone document, a web-based platform, an interactive dashboard, or a combination of these, depending on how you aim to effectively communicate your SCM sustainability performance and engage your stakeholders.
To ensure the quality and credibility of your report, you need to collect and analyze reliable and relevant data from your SCM activities. You should use appropriate methods and tools to measure, monitor and verify your data, such as life cycle assessment, carbon footprint analysis, supplier audits or surveys. You should also compare your data with your targets, benchmarks and previous reports to assess your progress and performance.
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Gokul Shekar
TEDx Speaker | Public Speaker | Author | Climate Change Advocate | Sustainability | Renewable Energy | ESG | Carbon Neutrality | Carbon Credit Projects | Carbon Credit Partnerships
To ensure the quality and credibility of your sustainable supply chain management (SCM) report, it's imperative to collect and analyze reliable and relevant data from your SCM activities. Employ appropriate methods and tools like life cycle assessment, carbon footprint analysis, supplier audits, or surveys to measure, monitor, and verify your data. Additionally, compare your data with predefined targets, industry benchmarks, and data from previous reports to gain a comprehensive perspective on your progress and performance. This robust data-driven approach not only enhances the accuracy of your report but also demonstrates your commitment to transparency and continuous improvement, thereby bolstering its credibility.
The main goal of your report is to communicate your sustainability story and impact to your stakeholders. You should use clear, concise and consistent language and visuals to convey your message. You should highlight your achievements, challenges and opportunities, as well as your commitments, actions and plans for the future. You should also provide context and explanations for your data and results, as well as feedback and recommendations for improvement.
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Gokul Shekar
TEDx Speaker | Public Speaker | Author | Climate Change Advocate | Sustainability | Renewable Energy | ESG | Carbon Neutrality | Carbon Credit Projects | Carbon Credit Partnerships
The primary objective of your SCM report is to effectively communicate your sustainability story and impact to your stakeholders. Utilize clear, concise, and consistent language and visuals to convey your message in an easily understandable manner. Showcase your achievements, acknowledge challenges and opportunities, and articulate your commitments, actions, and future plans. Provide valuable context and explanations for your data and results, enabling stakeholders to comprehend the significance. Additionally, include constructive feedback and recommendations for improvement, creating a holistic perspective that demonstrates your dedication to transparency, progress, and meaningful engagement with your stakeholders.
A successful report is one that engages your stakeholders and discloses your information in a timely and accessible manner. You should involve your stakeholders in the reporting process, such as by soliciting their input, feedback and expectations, or by collaborating with them on joint initiatives or projects. You should also disclose your report to your stakeholders, such as by publishing it on your website, social media or other channels, or by hosting events, webinars or workshops to share and discuss your findings.
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Gokul Shekar
TEDx Speaker | Public Speaker | Author | Climate Change Advocate | Sustainability | Renewable Energy | ESG | Carbon Neutrality | Carbon Credit Projects | Carbon Credit Partnerships
Absolutely, a successful sustainable supply chain management (SCM) report not only effectively communicates your information but also engages your stakeholders in a timely and accessible manner. To achieve this, involve your stakeholders in the reporting process by seeking their input, feedback, and expectations, or even collaborating on joint initiatives or projects. Furthermore, ensure wide disclosure of your report by making it accessible through your website, social media, or other relevant channels. Hosting events, webinars, or workshops to share and discuss your findings can further enhance engagement and foster a productive dialogue with your stakeholders, reinforcing your commitment to transparency and collaboration.
Reporting is not a one-time event, but a continuous process of learning and improvement. You should review and evaluate your reporting process, such as by measuring its effectiveness, impact and value, or by identifying its strengths, weaknesses and areas for improvement. You should also seek external assurance or verification for your report, such as by hiring a third-party auditor, consultant or certification body, or by joining a reporting initiative or network.
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Gokul Shekar
TEDx Speaker | Public Speaker | Author | Climate Change Advocate | Sustainability | Renewable Energy | ESG | Carbon Neutrality | Carbon Credit Projects | Carbon Credit Partnerships
It's essential to continually review and evaluate your reporting process, measuring its effectiveness, impact, and value. Identifying strengths, weaknesses, and areas for improvement is crucial for refining your approach. Additionally, consider seeking external assurance or verification for your report. This can involve engaging a third-party auditor, consultant, or certification body to provide an independent assessment of your sustainability efforts. Joining reporting initiatives or networks can also provide valuable insights and opportunities for improvement, ultimately enhancing the quality and credibility of your sustainable supply chain management (SCM) reporting.
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Eng.Sultan S. AlSaif
Corporate Sustainability Management | Project Management | GRI | SDGs
It is crucial to establish a well-defined process for ensuring the accuracy of information in the sustainability reporting. This process encompasses the following steps: 1- data collection, 2- data verification, 3- data documentation, 4clear reporting,5- continuous improvement. By following this process, you can ensure the accuracy of the information presented in the sustainability report and reflect the actual status of the entity, leading to making informed decisions for the betterment of people, the environment, and the economy.
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