An office of a company that uses sustainable sourcing practices.

Sustainable Sourcing: Best Practices for Your Business

Jane Marsh - November 21, 2023

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Consumers are becoming more environmentally aware and socially responsible, making them more critical when deciding which businesses to support. Companies must recognize the importance of sustainable sourcing to keep up with the growing environmental concerns. This approach aligns with ethical values and makes good business sense in the long run. 

Sustainable Sourcing 101

Sustainable sourcing is the practice of procuring goods, materials, services and resources to minimize negative environmental, social and economic impacts. It involves considerations like using eco-friendly or recycled materials, ensuring fair labor practices, reducing waste and promoting transparency throughout the supply chain. Sustainable sourcing aims to meet present needs without compromising the ability of future generations to meet their own needs, aligning business operations with principles of environmental stewardship and social responsibility. 

The Importance of Sustainable Sourcing

Environmental Impact Reduction

Sustainable sourcing helps mitigate the adverse effects of traditional supply chain practices on the environment. It promotes the use of eco-friendly materials, minimizes waste and reduces carbon emissions through responsible transportation and manufacturing methods. Doing this helps preserve natural resources and positions your business as a responsible steward of the planet. 

Social Responsibility 

Businesses that practice sustainable sourcing contribute positively to the well-being of their communities. By supporting fair labor practices, ensuring safe working conditions and respecting human rights throughout the supply chain, companies can enhance their reputation and build stronger relationships with consumers and employees. While 90% of business leaders view sustainability as important, only 60% have implemented strategies. 

Customer Loyalty

Loyal customers are a valuable asset for any business. When a company embraces sustainable practices in its sourcing, it aligns with the values of an increasingly eco-conscious consumer base and fosters trust and loyalty among its customers. Shoppers today aren’t just looking for quality products, they seek brands that share their ethical and environmental concerns. By demonstrating a genuine commitment to sustainability, businesses can attract and retain loyal customers who appreciate the company’s efforts to minimize its ecological and social impact. 

These customers are more likely to make repeat purchases, recommend the brand to others and become advocates for its sustainable initiatives, ultimately contributing to the long-term success and growth of the business. 

Risk Mitigation

Adopting sustainable sourcing practices can mitigate various risks, like supply chain disruptions due to climate change and reputational damage from unethical practices. By diversifying sources and promoting transparency, businesses can better adapt to a rapidly changing business landscape. 

Enhanced Market Competitiveness 

Consumers are increasingly conscious of the environmental and social implications of their purchasing decisions. By offering sustainably sourced products or services, businesses can tap into a growing market segment that values responsible consumption. Investing in sustainability can boost brand loyalty and provide a competitive edge. A company’s environmental record influences 77% of customers when deciding to buy from them. Additionally, the younger generations — millennials and Gen Z — who comprise the majority of consumers, are more influenced by a company’s sustainability than older generations. 

Practical Tips For Sustainable Sourcing

Assess Your Supply Chain

Begin by thoroughly assessing your supply chain to identify areas that need improvement. Consider factors like energy consumption, waste generation, ethical labor practices and water usage. This assessment is a baseline for implementing sustainable changes.

Set Clear Sustainability Goals

Establish specific, measurable and time-based sustainability goals for your sourcing process. Goals could include reducing carbon emissions, increasing the use of recycled materials or sourcing from Fair Trade-certified suppliers. Clear goals will guide your efforts and help you track progress. 

Collaborate With Suppliers

Engage with your suppliers to promote sustainability. Encourage them to adopt eco-friendly practices and reduce waste. Build partnerships based on shared values and long-term commitments to sustainability. 

Prioritize Local Sourcing

Whenever possible, source materials and sources locally to reduce transportation-related emissions and support local economies. Local sourcing also fosters closer relationships with suppliers, making it easier to ensure ethical practices. 

Consider Sustainable Packaging

Consider sustainable packaging and materials that are recyclable, reusable or biodegradable. Reducing packaging waste is a significant part of sustainable sourcing. More than 50% of consumers are willing to pay more for products or services designed to be recycled or reused. 

Switching to sustainable packaging options is a great place to start if you run a small business.

Embrace Innovation

Explore innovative solutions like circular economy principles, which focus on reducing waste and extending product life cycles. Invest in sustainable technologies and materials that align with your sourcing objectives. 

Engage With Industry Associations

Join industry associations or groups focused on environmental friendliness. These organizations often share best practices and resources to help you improve your sourcing practices. 

Implement Energy-Efficient Measures

Implement energy-efficient practices in your supply chain, like using energy-efficient equipment, optimizing transportation routes, conserving water and sourcing renewable energy. 

Ensure Transparency

Transparency is crucial to building trust with consumers and stakeholders. Share information about your sourcing practices, including the origin of materials, environmental certifications and ethical labor standards. Transparency builds credibility and helps hold your business accountable.

Seek Customer Feedback

Actively seek feedback from your customers about their sustainability expectations and preferences. This information can help you tailor your sourcing practices to meet their needs. It’s crucial to keep up to date with these statistics as this information constantly changes as more and more consumers shift their mindsets amidst climate change. 

Research Certifications and Standards

Look for reputable sustainability certifications and standards relevant to your industry. Examples include the Forest Stewardship Council (FSC) for wood products, organic certifications for food and textiles and ISO 14001 for environmental management systems. These certifications can guide your sourcing decisions and assure customers of your commitment to sustainability. 

Educate and Train Your Team

Ensure your employees are aware of and committed to sustainable sourcing practices. Provide training and resources to help them make informed decisions that align with your sustainability goals. Involve them in sustainability efforts. Encourage them to suggest ideas, participate in volunteering and engage in training programs. 

Sustainability Matters

Sustainable sourcing isn’t just a trend – it’s a strategic imperative for businesses in the 21st century. By prioritizing environmental conservation and ethical practices, companies can create a positive impact on society while securing their long-term success. The journey toward sustainable sourcing may require initial investments and changes, but the benefits in terms of reputation, risk mitigation and market competitiveness far outweigh the costs. Embracing sustainable sourcing is good for the planet, society and your business. 

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About the author

Jane Marsh

Starting from an early age, Jane Marsh loved all animals and became a budding environmentalist. Now, Jane works as the Editor-in-Chief of where she covers topics related to climate policy, renewable energy, the food industry, and more.