STRATEGIC SOURCING
“ Typically, companies have a reasonably good view on what their tier-1 suppliers are doing – but when it comes to tier-2 or further down the chain, where typically no contractual relationships exist, this gets increasingly difficult,” Peter adds.
“ When it comes to carbon, we recommend companies look into WBCSD’ s Partnership for Carbon Transparency whose goal is to make product level carbon transparency happen along any multi-staged value chain.”
Measuring long-term value creation The true test of responsible sourcing lies in its ability to generate measurable long-term value. Schneider Electric demonstrates this through its comprehensive approach to tracking both financial and sustainability outcomes.
“ Our Schneider Sustainability Impact program tracks progress on clear KPIs such as emissions, responsible sourcing and decent work impact so we know we’ re moving the needle,” Ard adds.
The company also gathers feedback from suppliers, customers and local communities to understand realworld impacts. But the value extends far beyond compliance metrics:“ sustainability is a must-have for our customers, shareholders and investors, and it’ s a big driverof supplier resilience and efficiency,” Ard continues.
206 September 2025