Top 5 Lessons on How to Engage Sustainable Suppliers | Sustainable Brands (2024)

For corporations, the age of “random acts of greenness” is over. Progressive companies integrate sustainability into their everyday, core business models and throughout their value chains. It means being accountable for your entire value chain — but engaging sustainable suppliers has proven to be a challenge for many companies.

For corporations, the age of “random acts of greenness” is over. Progressive companies integrate sustainability into their everyday, core business models and throughout their value chains. It means being accountable for your entire value chain — but engaging sustainable suppliers has proven to be a challenge for many companies.

At Domtar, we design, manufacture and market pulp, paper, and personal care products that people rely on every day, from copy paper to baby diapers. Our customers come to us because their customers want responsibly sourced products. As a North American forest products company, our value chain often starts in the hands of hundreds of small landowners.

To meet the increasing demand for responsibly sourced wood, we established our pilot organization, The Four States Timberland Owners Association (FSTOA), to work with landowners in the southeast U.S. to certify their land according to the highest third-party environmental standards in the industry. Through this pilot, we’ve helped certify more than half a million acres of U.S. forestland. In the process, here’s what we learned about how to support forest landowners to become sustainable suppliers:

5. Be respectful & flexible: Recognize suppliers’ autonomy & ownership. Many landowners are wary of certification because they fear they’ll lose control of their land. They need to be reassured that no company or environmental group can tour their land uninvited, and that certifying the land does not require them to sell wood to us — or anyone. You must recognize that the land remains their property, and that the decision to certify and sell their resource is ultimately theirs. As a company, our role is to support them in the certification process. Suppliers need to know they’re in the driver’s seat in order to trust a company to be their partner and pursue certification.

Navigating the Complexity of Corporate Political Responsibility in 2024

Join us as Elizabeth Doty, director of the Erb Institute's Corporate Political Responsibility Taskforce, shares Principles for Corporate Political Responsibility and how to use these non-partisan principles to weigh decisions and articulate positions in an environment of distrust — Thurs, May 9, at Brand-Led Culture Change.

4. Close the loop: Connect suppliers to customers and the product. We connect landowners directly with senior executives from our biggest customers, so they can hear firsthand about the market demand for certified forest products. Whether it’s copy paper, toilet paper, or diapers — many landowners want to know where their wood goes and are inspired when they realize they’re the most important stakeholder in the value chain.

3. Make it easy: Acknowledge work done & keep it simple. Certification is complicated — even for a Fortune 500 with a department dedicated to the process. Now imagine how overwhelming it is for a small landowner with a full-time job and family. We break down certification standards into digestible terms for landowners so that the complexity of the process doesn’t become the ultimate barrier to entry. Many of the landowners we engage are already sustainable forest managers — they simply need the support to cross the finish line to certification. Our forest managers show landowners what they’re already doing right and how close they are to meeting certification standards.

2. Be accountable: Support and reward suppliers. Certification can be financially and logistically demanding — common hurdles for small landowners. Through FSTOA, we financially support landowners’ certification costs where possible, deploy our forest managers to provide expertise on the ground and supply sample land plans. Through FSTOA we’ve also incentivized certified landowners by designating them as priority suppliers, where we commit to take their wood first and regardless of demand.

1. Create a community: Provide access to best practices & shared experiences. Through FSTOA, we provide a network for fellow certified landowners to connect and share common challenges and best practices. We also bring undecided landowners in to meet certified landowners to hear firsthand how certification can be achieved and maintained.

Moving forward: Collaboration & scaling up the model

At the end of the day, engaging sustainable suppliers requires deep collaboration with our partners: customers, as well as leading environmental organizations. World Wildlife Fund and customers including Procter & Gamble and Staples have all worked closely with us on this landowner pilot program. And last year, we partnered with the Rainforest Alliance to support the Appalachian Woodlands Alliance, which is focused on bringing landowners, forest product companies, best practices and tools together for the health and productivity of our Southeastern forests.

We take a hands-on, grassroots approach to supplier engagement — working with one supplier at a time. It’s not easy. It takes time. But it works. It’s an effective strategy, but we recognize that a broader swath of landowners must be reached. That’s why our future efforts will focus on working with our partners to scale up the model to replicate success.

Domtar

Supply Chain

Supply Chain

Paige Goff

Corporate Communications

Published Sep 6, 2016 10am EDT / 7am PDT / 3pm BST / 4pm CEST

Paige Goff
Vice President of Sustainability
Domtar

Paige Goff is Vice President of Sustainability at Domtar. Goff is responsible for identifying and leveraging the latest sustainability trends to strengthen and support all facets of Domtar’s business. She joined Domtar in 2004, building upon 21 years of experience in the forest products industry. She has a Master of Business Administration degree.

Top 5 Lessons on How to Engage Sustainable Suppliers | Sustainable Brands (2024)

FAQs

What is an example of a sustainable supply chain strategy? ›

Common examples include Patagonia, which is known for using organic cotton, recycled materials, and fair wage supply chains to produce its clothing, and IKEA, which is actively investing in supply chain sustainability and circularity around the world.

What are supplier engagement strategies? ›

The simplest way to define supplier engagement is to think of it as a pledge or commitment; it is the level of commitment a supplier has to your brand, your values, and your goals. Suppliers focus their energy and expertise to not just support but drive progress towards your brand's goals.

What are the five common strategies for sustainability marketing? ›

There are five core strategies and principles related to sustainable marketing. They are known as consumer-oriented marketing, customer-value marketing, innovative marketing, sense of mission marketing, and societal marketing.

What are the criteria for supplier sustainability? ›

Compliance. The first and most basic criterion is to check whether your suppliers comply with the relevant laws and regulations in their countries and regions of operation. This includes environmental standards, labor rights, health and safety, anti-corruption, and human rights.

What is the best approach strategy for managing supplier? ›

Your supplier management objectives should be informed by business needs, with key considerations likely to include cost, supply chain efficiency and resilience. By using supplier key performance indicators (KPIs), you can gain valuable insights into how well your suppliers perform.

What are the three pillars of sustainability in a supply chain? ›

Sustainability in supply chains requires three responsibilities: social, environmental, and financial. For those of you familiar with the Triple Bottom Line (TBL) method of accounting, these three elements will sound familiar.

What are the key drivers of sustainability in supply chain? ›

Market pressures. Competition is considered one of the direct drivers for incorporating sustainability into the supply chain. Organizations, under the influence of external and internal pressures, adopt sustainability practices to gain a competitive advantage [16] by differentiating themselves from their competitors.

What are the four approaches for making supply chains sustainable? ›

Figure 1 identifies four broad strategies for supply chain management: legal, ethical, responsible, and sustainable. These strategies are hierarchical. A responsible supply chain, for example, must also be legal and ethical.

What are the sustainable issues in supply chains? ›

These include issues like pollution, water usage, greenhouse gas emissions, deforestation and other impacts that operations across a supply chain may have on the planet. A green supply chain may not consider the ethical and social impacts of business activities.

How do supplier relationships relate to sustainability? ›

Practices to Improve Outcomes

Buyers should be willing to assist their suppliers when possible, helping them with best practices in advancing sustainability. Take this as an example: Unilever provides tools and resources to suppliers with significant climate impact to help them measure and reduce emissions.

Top Articles
Latest Posts
Article information

Author: Nicola Considine CPA

Last Updated:

Views: 5925

Rating: 4.9 / 5 (69 voted)

Reviews: 92% of readers found this page helpful

Author information

Name: Nicola Considine CPA

Birthday: 1993-02-26

Address: 3809 Clinton Inlet, East Aleisha, UT 46318-2392

Phone: +2681424145499

Job: Government Technician

Hobby: Calligraphy, Lego building, Worldbuilding, Shooting, Bird watching, Shopping, Cooking

Introduction: My name is Nicola Considine CPA, I am a determined, witty, powerful, brainy, open, smiling, proud person who loves writing and wants to share my knowledge and understanding with you.