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ASCM Insights

Why Purpose-Driven Operations are the New Standard

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In an era of relentless disruption, global supply chain leaders know that the health of their business is inseparable from the health of the systems and people sustaining it. Indeed, supply chains are where the efficient fulfillment of essential human needs directly translates into broader resilience and strength. In meeting our responsibilities to both people and the environment, industry leaders make a clear impact by supporting safety and well-being and prioritizing circularity and reducing environmental impact.  

The World Economic Forum identifies workforce health as a material constraint on global productivity, reframing employee well-being as essential “operating infrastructure.” Further, as rising health care costs threaten supply chain resilience, leading organizations are proactively advancing both health systems and diagnostics. For instance, the WEF has recognized Coca-Cola and Nestlé for their integration of zero-tolerance land-grab policies and community-level protections to safeguard worker homes. Similarly, Chevron Phillips Chemical and TotalEnergies are taking meaningful steps to bolster safety and resource efficiency, proving that treating human health as a long-term asset is the key to stabilizing output in a volatile market. 

On the environmental sustainability side, General Motors recently became the first automaker to “secure enough renewable energy to match 100% of its electricity use across all its U.S. facilities.” It reached this goal by matching 70% of electricity usage with renewables, cutting scope 1 and 2 emissions, and investing in domestic solar and wind energy. GM leaders report this clean energy is creating grid resilience, price stability and energy independence.  

In the CPG sector, Hershey is increasing sustainability efforts in its snacks division. The business is optimizing ingredient sourcing and using more replenished groundwater to aid in long-term peanut production, eliminating 25 million pounds of packaging, and sourcing 100% of electricity from renewable and zero-emissions sources. “That’s an example of the holistic enterprise approach that we’re trying to bring across a broader ingredient list,” says Whitney Mayer, Hershey’s head of global sustainability.  

Meanwhile, outdoor gear company Cotopaxi is leading decarbonization initiatives aimed at reducing supply chain emissions across the sector  to support suppliers transitioning from coal-based thermal energy to lower-carbon alternatives. The company is also committing to circularity by “focusing on repairability and long-term serviceability for its hard-sided luggage; building a thriving secondhand resale operation; and establishing end-of-life solutions, including donation to Soles4Souls and reintegration into upcycled product channels.  

As another example, athletic apparel company Under Armour has joined the U.S. Cotton Trust Protocol, a voluntary sustainability and traceability platform designed to bring data-driven transparency to cotton supply chains." The initiative supports farmers while verifying sourcing claims with quantifiable data. A key feature of the Trust Protocol is end-to-end traceability, enabling article-level tracking of cotton from origin to finished product, supported by mills and manufacturers.”  

Recognizing companies with the community in mind 

ASCM is proud to offer two distinct sustainability honors in this year’s Awards of Excellence: Sustainability Catalyst celebrates organizations driving positive change through the integration of SCOR DS and ASCM’s free Enterprise Standards for Sustainability; and Sustainability Champion elevates the individuals leading these transformations across their value chains.  

The newly revamped program is all about putting SCOR into action — using the model to unlock critical performance, resilience and transformation advancements. Being recognized as an award-winner enables you to demonstrate leadership that makes a tangible impact, helping you attract and retain top-tier talent; validating your supply chain’s performance; and enhancing your reputation as a credible, purpose-driven organization. Applications close May 31, so submit your entry today! 

About the Author

Abe Eshkenazi, CSCP, CPA, CAE CEO, ASCM

Abe Eshkenazi is chief executive officer of the Association for Supply Chain Management, the largest organization for supply chain and the global pacesetter of organizational transformation, talent development and supply chain innovation.