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Sustainable Investing Glossary

Supply chain management

Integrating environmentally and socially viable practices into the entire supply chain life cycle.

There is a growing need for companies to ensure and monitor the sustainability of their supply chain. If a company’s supplier resorts to, for example, child labor, this can result in reputational damage and costs for the company. Corporations therefore increasingly see sustainability in the entire supply chain as essential to long-term profitability. A sustainable supply chain can offer value creation opportunities and competitive advantages. 

Supply chain management affects the production process from product design and development, to material selection (including raw material extraction or agricultural production), manufacturing, packaging, transportation, warehousing, distribution, consumption, return and disposal. Environmentally sustainable supply chain management and practices can assist organizations in not only reducing their total carbon footprint, but also in optimizing their end-to-end operations to achieve greater cost savings and profitability.

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