Supplier Sustainability Assessment:Practices and Way Forward

Off late companies are shifting their focus on sustainability from themselves to their suppliers as roughly 60-80% of the lifecycle emissions is due to its suppliers. To identify the right supplier and to assess current suppliers, there is no single methodology that is used. This white paper discusses the different supplier assessment methodologies and its relevance in today?s business. This white paper introduces benchmarking as a prospective supplier assessment methodology and its benefits. In the end, this white paper identifies the key criteria that are essential for conducting any supplier assessment. Supplier Sustainability Assessment Practices Supplier Code of Conduct A typical supplier code of conduct lists down the set of expectations that a company requires from its suppliers. This is a qualitative assessment of a supplier capability and the rules laid out are as a result of its corporate values. The code of conduct details the supplier expectations in the areas of human rights and labor, environment and anti-corruption. Today, most lead companies not only adopt a supplier code of conduct and communicate that code to their suppliers, but they also have an implementation program to try to ensure supplier compliance with the code. In this case, supplier code of conduct cannot stand alone without supplier information from lifecycle assessments.