From Suppliers to Sustainability: Integrating ESG into Your Supply Chain

By Jonathan Crosland, Marr Procurement

In the care sector, the commitment to Environmental, Social, and Governance (ESG) goals goes far beyond mere compliance or profitability. It’s a commitment to enhancing lives, ensuring sustainability, and upholding a legacy of responsibility. Central to this mission is an often-underestimated element—your suppliers.

The adult social care sector in the UK contributed £60 billion to the economy, standing for 6% of total employment[1]. With Analyses of Social Return on Investment (SROI) studies show for every £1 when spent with regard to social value, can generate between £2 to £4 in value to the local economy[2] the social care sector could deliver significant social value impact across the country.

Choosing Your Path

Embarking on your ESG journey can feel like venturing into uncharted territory, but it doesn’t have to be overwhelming. The key is to start with steps that resonate with your organisation’s core values. Begin, perhaps, with Social Responsibility, a cornerstone of ESG that directly affects your community. Working and supporting with local businesses, collaborating with other charities, or engaging suppliers who champion diversity are all meaningful ways to align your business practices with your ethical values. Trying to engage in activity across Environmental, Social and Governance quickly becomes overwhelming without a clean and effective strategy. Focussing on a single area drives results and keeps the business pulling in the same direction.

Conversations That Spark Innovation

Your suppliers might already be on the cutting edge of sustainability, implementing practices such as recycled packaging or eco-friendly deliveries. Open a dialogue with them—these conversations can lead to untapped opportunities that align seamlessly with your ESG aspirations. Research shows that over 70% of companies have found their ESG initiatives sparked innovation within their supply chains, often leading to cost savings and enhanced brand reputation. By exploring your suppliers’ current initiatives, you might discover innovative practices that require minimal effort on your part but make a significant impact. Stationery, Food and Consumables are excellent places to start those conversations.

Forge a Consistent Path

Consistency is the backbone of meaningful change. Once you’ve set your ESG goals, it’s crucial to maintain focus. Frequent shifts in goals can dilute your message and undermine supplier commitment. A study by Harvard Business Review[3] found that companies with consistent ESG policies attract more committed suppliers, resulting in stronger partnerships and long-term success. Commitment from your leadership team not only solidifies your internal resolve but also proves to suppliers that your dedication to ESG is unwavering. This consistency fosters deeper collaboration, transforming suppliers into true partners who are invested in your shared goals.

Embracing Financial Allies

In the realm of ESG, finances play a pivotal role. Engaging your finance team early in the process is essential. Discuss the potential impact of your choices—while locally sourced goods might come with a higher price tag, they often contribute to a reduced carbon footprint and stronger community support. Suppliers can provide valuable cost impact assessments, helping to bridge the gap between sustainability and financial prudence.

Conclusion: Forging a Sustainable Legacy

ESG is not just a trend; it’s a catalyst for transformative change within care homes. Partnering with suppliers is not merely a transactional relationship but a convergence of shared values that flow through your supply chain. It’s about crafting a legacy that extends far beyond profit margins—a legacy of care, responsibility, and sustainability.

As you journey towards ESG excellence, every step toward sustainability and social responsibility is a stride toward a brighter future for your patients, residents, and community. Together, you and your suppliers can redefine what it means to deliver safe, responsible, and sustainable care.

If you’re eager to explore this topic further, Marr Procurement is here to help. Recently, we delivered nearly significant savings on Stationery, Consumables, Commercial printing and Printers. Working with Social Enterprises and local organisations to optimise local benefit, reduced deliveries and packaging, and with suppliers who have a strong ESG strategy in place.

[1] https://www.skillsforcare.org.uk/About-us/Skills-for-Care-and-Development/Economic-value-of-the-adult-social-care-sector.aspx

[2] https://www.caremanagementmatters.co.uk/article/social-value-what-it-is-and-how-can-it-help-your-care-business/

[3] https://hbr.org/2024/07/its-time-to-change-how-esg-is-measured