A Future-Fit Business seeks to reduce – and eventually eliminate – any negative environmental and social impact caused by the goods and services it depends upon, by continuously striving to anticipate, avoid and address issue-specific hotspots in its supply chains.
What this goal means
Every company relies to some extent upon goods and services curecured from other organizations, which are collectively refer red to as sup pliers. Common examples include energy, water, computers, transport, machinery, furniture, accounting services, and materials required to make products.
All companies are mutually accountable for the environmental and social impacts caused by the production and delivery of the goods and services they depend upon. Only when such impacts are eliminated can any company consider itself to be Future-Fit across its entire value web.
This goal requires a company to implement policies and procedures that continuously seek to maximize the future-fitness of its purchases, with a particular emphasis on anticipating, avoiding and addressing issue-specific supply chain hotspots.
To be Future-Fit a company must:
- Have policies and processes in place that enable it and its employees to anticipate where negative supply chain impacts are likely to occur;
- Avoid them where possible; and
- Take measurable steps to address concerns that arise.
SDGs this will contribute to:
- 1. No Poverty
- 2. Zero Hunger
- 3. Good Health and Well-being
- 4. Quality Education
- 5. Gender Equality
- 6. Clean Sanitation and Water
- 8. Decent Work and Economic Growth
- 11. Sustainable Cities and Communities
- 12. Responsible Consumption and Production
- 13. Climate Action
- 14. Life Below Water
- 15. Life on Land
- 16. Peace, Justice and Strong Institutions
Why this goal is needed...
Procurement practices typically focus on identifying the most cost-effective and efficient means of acquiring goods and services, sometimes at the expense of environmental or safety concerns.
A Trucost study found that of the $2.15 trillion of environmental damage caused by the world's largest 3,000 companies annually, 49% of this damage came from impacts hidden within their supply chains.
The scarcity of some natural resources results in extraction practices that undermine future-fitness.
For example, a popular type of granite comes from only one district in India, where debt bondage, child labour and unsafe conditions for workers are prevalent issues.
Procurement safeguards the pursuit of future-fitness
Minor wording and formatting corrections.
Release 2, initial publication.