[1] Since the 1990s, awareness of these negative impacts has grown, leading stakeholders to push companies to take responsibility and actively work to improve the sustainability of their supply chains.
[4] Sustainable sourcing finds its roots in the concept of Corporate Social Responsibility (CSR), which gained popularity in the United States in the 1970s and internationally in the 1990s.
CSR has evolved over time from a philanthropy-based strategy for responding to consumer concerns, to a decision-making process that takes into consideration the various facets of a company's impacts.
[3] Sustainable sourcing can be defined as obtaining the materials, products, and services an organization needs from its suppliers in a manner that is socially and environmentally responsible, while still being economically sound.
[2] Supply chain activities mainly impact the environment in two ways: natural resource depletion and/or production of harmful pollutants.
Companies often fall short in ensuring fair treatment and safe working conditions for workers, especially in developing countries where a large portion of production happens.
[9] Sustainable sourcing requires companies meet high environmental and social standards while continuing to provide good economic value at a competitive cost.
[11] Regulation of global business practices has seen a significant shift from governmental to private, as companies are increasingly held accountable by consumers and society as a whole.
In developed nations, the use of VSS by governments can be helpful in managing and reducing the environmental and social costs often associated with imported goods.
NGOs are responsible for a number of the most well-known certification and labeling schemes including FairTrade, Rainforest Alliance, UTZ Certified, and the Organic- /Bio- Standard.
[11] FairTrade finds its origins in the fair trade social movement which began in the late 1950s and aims to promote community development in disadvantaged parts of the world.
[11] The minimum price is set by FairTrade International depending on local economic conditions and is meant to cover both the cost of sustainable production and a decent living quality.
The following products are listed on FairTrade International's website: bananas, cocoa, coffee, flowers, sugar, tea, cotton, fruit/juices, herbs/spices, honey, nuts/oils, quinoa, rice, vegetables, wine, gold, sports balls, textiles, carbon, and composites.
A main component of the certification scheme is the required production of a detailed plan for the development of a sustainable farm management system that will allow for conservation goals to be met.
[11] In 2020, the Rainforest Alliance redesigned its certification program making a number of significant changes such as shifting away from the one-size-fits-all model and pass/fail system it had previously used when evaluating producers.
[20] The Rainforest Alliance certifies a number of agricultural and forest products, which it divides into the following six categories on its website: Flowers and Plants, Food and Beverages, Health and Beauty, Home and Kitchen, Printing Services, and Sporting Goods.
[25] Some well-known examples of MSIs include the Roundtable on Sustainable Palm Oil, the Forest Stewardship Council, the Better Cotton Initiative, and the Global Coffee Platform.
Stakeholders involved include environmental, social, or development focused NGOs, consumer goods manufacturers, oil palm growers, retailers, and more.
The BCI is made up of a wide variety of stakeholders from farmers to fashion companies and textile brands, as well as civil society organizations.
The GCP developed the Baseline Coffee Code, which contains principles of both good and bad agricultural and management practices, as well as international conventions, to act as a sector wide reference for sustainability.
The following provide examples of sustainable sourcing in practice: The H&M Group is a design and fashion company made up of a family of brands including H&M, H&M Home, COS, Arket, Monki, Weekday, & Other Stories, and Afound.
Many initiatives, such as the Global Coffee Platform and the Roundtable on Sustainable Palm Oil, are working to define a common set of standards within specific sectors.