A new study from World Resources Institute (WRI) reveals that a major blind spot in corporate sustainability strategies is putting both workers and supply chains at risk. The study, Elephant in the Boardroom: People Are Missing in Corporate Supply Chain Goals, found that while many have set climate and nature targets for their supply chains, just 12% have at least one goal focused on people, and only 3% have committed to improving working conditions or investing in worker skills.
“If you are building a supply chain for the future, you can’t just cut emissions — you have to factor in the billions of people doing the work,” says Eliot Metzger, WRI’s director of sustainable business and innovation. “Right now, most large companies are overlooking the needs of the people essential to transforming their supply chains. This not only undermines companies’ sustainability targets but also the stability of their supply chains and their reputation.”
Key takeaways:
· Approximately 90% of supply chain goals from large companies force smaller suppliers to comply with sustainability objectives without considering how these suppliers can pursue sustainability efforts while still producing high-quality products at the lowest possible cost.
- 80-90% of environmental impacts are linked to suppliers’ extraction and production processes.
