BUSINESSES OF ALL SIZES NEED TO BE TRUSTED

BY EVERYONE

THEY DO BUSINESS WITH , AND THIS MEANS

KNOWING YOUR SUPPLIERS .

MBs are 99 % of the world ’ s businesses and we know they want to become more sustainable : our research tells us that that 83 % of SMBs want to prioritise sustainability – they understand how it can make their businesses more resilient , especially in today ’ s climate of economic uncertainty – but they feel stymied by lack of know-how , funding and tech tools to help them measure their impact . There are some simple , low cost steps that they can take to create sustainable supply chains .

Businesses of all sizes need to be trusted by everyone they do business with , and this means knowing your suppliers . This is as true for a company with 10 employees as for one with 10,000 ; all companies are expected to hold themselves to high ethical standards , regardless of their size . No one wants to be seen engaging with a company whose suppliers are associated with human rights or environmental harms , and even an indirect connection can be extremely damaging to a company ’ s brand and reputation . The same applies to dealing with suppliers buying raw materials that haven ’ t been ethically sourced or failing to protect customer data or avoid cyberattacks .

When selecting suppliers , ask basic questions around human rights : do they have a health and safety policy to keep employees safe ? Do they pay a living wage ? Do employees have reasonable working hours ? Are they free to leave their jobs if they want to ? While this is not an exhaustive list , asking key questions can provide assurance that the proposed supplier is not using child labour , for example .

Adopting a Supplier Code of Conduct is a good way to set expectations with your suppliers and secure their agreement to meet those expectations on a wide range of topics , such as those mentioned above , as well as anti-bribery and corruption and environmental performance . This can be displayed on a company ’ s website and shared with suppliers , along with a request to confirm agreement .

Many technology solutions are available , but by taking these simple , low-cost steps , SMBs can make positive strides towards creating sustainable and resilient supply chains .

It ’ s impossible to talk about protecting supply chains from risk without considering the environmental impact of supply chains . Carbon emissions from supply chains often make up the significant majority ( often over 90 %) of a company ’ s carbon footprint , and it ’ s incumbent on companies of all sizes to take action to reduce carbon emissions . Measuring emissions is the first step to accountability and action . There are plenty of useful resources such as The Climate Drive or the SME Climate Hub which can help you get started at no cost .

Reporting is an important next step . Currently , only 8 % of SMBs report on their impact . Reporting could open up new financial , growth and employment opportunities .

At Sage , we expect our suppliers to align with our high ethical standards and have been working with SMBs in our supply chain as part of our Sustainable Supply Chain Strategy . Our strategy is specifically designed not just to give us the data we need but to help SMBs take action towards becoming more sustainable and protecting their supply chains . As more companies take these steps , a multiplier effect is created , with every company having a greater impact beyond its own .

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