What Does a Sustainable Supplier Look Like? Ask IBM and Wal-Mart

In today’s global business environment, it is rare for a company to own an entire product or service value chain. Business operations rely heavily on external sources exposing the supply chain as a critical component of business success. Leading organizations are using the procurement function as a means to move towards a more sustainable business by forming "strategic relationships" with companies, large and small, who demonstrate leadership.

Case in point, I.B.M. said on Wednesday that it will require its 28,000 suppliers in more than 90 countries to install management systems to gather data on their energy use, greenhouse gas emissions and waste and recycling. Those companies in turn must ask their subcontractors to do the same if their products or services end up as a significant part of I.B.M.’s $40 billion global supply chain. The suppliers must also set environmental goals and make public their progress in meeting those objectives.

While most are familiar with Wal-Mart’s broad supplier-focused efforts like its Packaging Scorecard and Sustainability Index , according to the New York Time's Green Inc blog, IBM's focus: “Our overall interest is to systemize environmental management and sustainability across our global supply chain so it helps our suppliers build their own capacity in a way that’s not only good for the environment but their business,” Mr. Balta said. “It’s about creating a system that works regardless of who is in leadership and what’s in green vogue.”

Creating supply chain management alignment through increased eco awareness, cooperative business relationships, and applied sustainability concepts can have immediate business impacts and reduce business sustainability risk - and possibly qualify your business as a sustainable supplier.