Sustainability is an increasingly vital aspect of modern manufacturing, shaping consumer preferences, regulatory requirements, and business strategies. For many businesses, sustainability begins with the supply chain. A recent survey revealed that 90% of manufacturers engaged in sustainable practices prioritise working with eco-friendly supply chain partners. Yet, the findings also highlight an area for deeper scrutiny: one in five businesses rely solely on their supply chain’s sustainability to claim the mantle of a sustainable manufacturer.

While leveraging sustainable materials is commendable and necessary, it raises the question: should it be the sole measure of a company’s sustainability? To create a truly impactful and enduring sustainable manufacturing strategy, businesses must go beyond outsourcing eco-credentials and take ownership of their practices.

The role of supply chains in sustainability

Supply chains are undeniably central to sustainability. From sourcing recycled materials to ensuring ethical labor practices, they influence a product’s environmental and social footprint. The survey indicates several positive trends:

• 90% of manufacturers reported working with sustainable partners.
• 58% conducted supply chain audits, revealing an encouraging commitment to monitoring and improving supplier practices.
• Many businesses source materials locally, reducing transportation emissions and supporting regional economies.

These efforts align with the global push toward greener supply chains. For instance, manufacturers using renewable energy or materials certified as High Environmental Value (HVE) demonstrate how partnerships can amplify sustainability goals. However, challenges arise when businesses stop at these steps, relying entirely on supply chain partners for their sustainability claims.

When outsourcing sustainability falls short

Outsourcing sustainability—where a company’s eco-credentials hinge solely on its supply chain—can undermine broader efforts to reduce environmental impacts. This approach raises key concerns:

• Limited Internal Accountability: Without internal measures like energy efficiency, waste reduction, or renewable energy adoption, the company’s sustainability efforts remain superficial.
• Customer Miscommunication: Consumers value transparency. If a brand markets itself as sustainable without distinguishing between internal and external practices, it risks losing trust.
• Missed Opportunities: Sole reliance on suppliers may blind companies to innovations within their own operations, such as waste reuse or process optimisation.

Elevating sustainability: Steps beyond the supply chain

To avoid pitfalls, manufacturers must adopt a holistic sustainability approach. Here are strategies to ensure deeper integration of eco-practices:

1. Auditing and Transparency: Conducting supply chain audits is an excellent starting point. The survey revealed that businesses conducting audits often uncovered areas for improvement, such as packaging waste. Regular audits promote transparency and help identify opportunities for collaboration with suppliers. Transparency also extends to consumer communication. Clearly distinguishing between supply chain and internal efforts can build trust and highlight areas for future progress.
2. Embracing Renewable Energy: Less than a third of surveyed businesses reported using renewable energy in manufacturing. Transitioning to renewables, while challenging, can significantly reduce emissions. Companies like IKEA and Google demonstrate how investments in solar, wind, and energy storage create long-term savings and sustainability dividends.
3. Process Optimisation: Efficient use of materials and energy is critical. While only 30% of businesses focus on material efficiency, simple measures like optimising production layouts or investing in smarter manufacturing technologies can return significant benefits.
4. Commitment to Recycling and Waste Reduction: Recycling efforts among respondents are commendable, with over 90% recycling the majority of their waste and packaging. Expanding zero-waste initiatives or reusing production offcuts can further enhance these efforts.
5. Circular Economy Strategies: Implementing circular economy models—such as take-back programs or modular product designs—helps extend product lifecycles. Circular strategies can also reduce dependence on external suppliers, as materials are reused internally.
6. Setting Bold Sustainability Goals: Companies must establish comprehensive sustainability plans, which are strongly correlated with carbon offsetting in the survey. Clear goals, backed by measurable metrics, ensure progress and accountability.

Case Studies: Leaders in Sustainable Manufacturing

• Patagonia: Known for its commitment to environmental responsibility, Patagonia combines sustainable materials with internal initiatives like energy-efficient manufacturing and a circular economy approach through its Worn Wear program.
• Unilever: This multinational focuses on decarbonising its operations and working toward a deforestation-free supply chain. It complements these efforts with water efficiency programs and renewable energy use.
• Tesla: Beyond sourcing materials responsibly, Tesla invests heavily in renewable energy to power its factories, demonstrating how internal practices can complement external sourcing.

Celebrating success, while striving for more

We should of course celebrate the progress businesses have made. Sourcing sustainable materials and partnering with eco-conscious suppliers represent significant achievements. They reduce environmental impacts, encourage supplier accountability, and meet consumer demand for greener products. However, manufacturers must ensure these steps are the beginning, not the end, of their sustainability journeys.

A call to action

As businesses navigate the complexities of sustainable manufacturing, they must take ownership of their practices. Relying solely on the supply chain for eco-credentials limits growth, innovation, and authenticity. By integrating sustainability into every aspect of operations—energy use, waste management, and circular strategies—companies can truly embody the principles of sustainable manufacturing.

The path forward is clear: celebrate the achievements of today but invest in the innovations of tomorrow. Only then can businesses rise above the label of “sustainable” and truly lead the charge toward a greener future.