Innovation in Responsible Supply Chains

Supply chains are commonly defined by their speed and efficiency. Today’s supply chain is also expected to be environmentally responsible, transparent, respectful of worker rights, and free of corruption and bribery. Complexity increases when the company is also responsible for the activities of partners, suppliers, and distributors. Diamond Head Research finds the unique, innovative approaches that drive CSR strategies, including such topics as:

•Anti corruption and bribery

•Occupational safety

•Ethical production of products

•Socially responsible business practices

•Corporate ethics, compliance, and governance

•Prohibit forced or child labor

•Activity in conflict-affected areas

•Ethical sourcing

•Sustainable production practices

 Examples of CSR Innovation in Responsible Supply Chains

  • Carrefour Uses Blockchain for Produce and Textile Traceability

    In collaboration with IBM Food Trust, Carrefour uses blockchain technology to ensure food safety and traceability for chicken, tomatoes, eggs, cheese, milk, and salmon. Now, they are expanding the program to include certain textiles. The technology will help Carrefour meet their goal of 100% of natural raw materials in its exclusive brand products to be sustainable and traceable by 2030, and 50% of cotton textiles to be sourced organically by 2025.

  • Starbucks C.A.F.E. Practices Verification Program

    We like Starbucks CAFE Practices Verification Program, which promotes sustainable coffee growing practices while also protecting the well-being of coffee farmers and their communities. The program tracks over 200 data points, from financial reporting to protecting workers’ rights and conserving water and biodiversity, while an independent third party oversees and validates the data collection process.

  • The Volkswagen "S" Rating

    Established in 2019, the Volkswagen S Rating is used to specifically review the sustainability performance of Volkswagen suppliers and highlight opportunities for improvement. Suppliers who fail to meet the S rating standards are not eligible to receive contracts. More than 65% of the company’s current suppliers have documented that they have a certified environmental management system in place - an S rating requirement. The company goal is for 100% of suppliers with more than 100 employees to have a certified environmental management system by 2025.