Issue link: http://palletcentral.uberflip.com/i/1453353
PalletCentral • January-February 2022 35 Sustainability? as lean as possible to drive out costs whilst satisfying customer needs. Climate change: Climate change, according to the United Nations, is the long-term alteration of temperature and weather patterns. e long-term trickle-down effect of climate change in business operations will see an increase in cost across all parts of the supply chain and affect the quality of goods delivered to customers. Natural disasters caused by climate change will test the level of flexibility in the supply chain with failure being the catastrophic result. As we have written about greenhouse gases and climate change in a previous blog post, supply chain systems and processes are a large contributor to the greenhouse gas emissions that exacerbate climate change. GHG emissions lead to a higher temperature, more drought, and a rise in ocean temperature. A rise in ocean temperature further leads to intense hurricanes and other disasters that can disrupt global commerce. With a deteriorating climate condition, supply chain risks will only become worse. Why is Supply Chain Sustainability Important? e increasing concern about climate change by consumers and businesses alike has pointed to supply chain sustainability as a strategic goal for all participants in the chain. Supply chain operations, from sourcing, to distribution, to end-user, are an energy-intensive process. Nations, governments, and business leaders have recognized the after-effects of these processes and have called for dramatic improvements in various worldwide climate summits like the Paris Agreement and the 26th UN Climate Change Conference in Glasgow. e medium-term goal within these actions is to reduce GHG emissions on a global scale. Many industries, like fast-moving consumer goods (FMCG), logistics, and supply chain; are being scrutinized and called upon to provide plans and goals for sustainability in their operations. e new business leaders understand that their operations can have significant impact on the environment, which then flows through the social, political, and economic landscapes where they do business. For example, Coca-Cola, who is a giant in the FMCG industry, utilizes its market reach to promote awareness of sustainability values and engage meaningfully with suppliers across its supply chain respectively. e 2020 Coca-Cola Business & Environmental, Social and Governance Report demonstrates the initiatives it is implementing within packaging, processes, and advocacy to redress its supply chain and communicate company-wide social responsibility and supply chain sustainability. Coca-Cola's goal is to make 100% of their packaging recyclable globally by 2025 and use at least 50% recycled material in all packaging by 2030. For industries and companies like this example, it is up to the wooden pallet and packaging industry, as a service provider in their supply chains, to demonstrate the value of our products in achieving our customer's goals for sustainability. Recycled wooden products do this by presenting sound, proven data that provides factual information for a customer's sustainability initiatives. Making a Supply Chain Sustainable with Wood Packaging e goal of attaining a sustainable supply chain is to incorporate eco-friendly business practices in everyday operations, these include the use of recycled packaging and/or packaging derived from renewable resources. Achievement of a customer's sustainability goals begins with important pillars that validate their goals and set up their operations for success with minimal disruption to any process: Identification: Companies identify areas of improvement along their supply chain from sourcing to packaging, to warehousing, to transportation. As operations are evaluated. e "low-hanging fruit" will highlight where the quickest positive environmental impacts will happen. is will help them jumpstart their development toward sustainability. As an expert in recycling processes and renewable wood products, you can guide them to quick wins that are identified