"How do you make sure you don't make the social problem worse by pushing environmental topics in the supply chain?"
A good challenge from The Fairtrade Foundation CEO, Michael Gidney, when discussing how as #regulation for environmental topics like #deforestation in the supply chain increases, we need to be careful of not forgetting the S in #ESG. I know, it's painful we can't just focus on one topic, but it's unfortunately reality.
More attention on e.g. #traceability, #certification, sustainability action comes with a cost. If you put that cost on smallholder farms that are already under significant price pressure, you will increase the #socialrisk for #livingwages, #childlabor, and more.
My take?
1️⃣ Don't force suppliers through priced evaluation schemes - be more flexible with data!
2️⃣ Take a holistic materiality approach to the supply chain - avoid the carbon tunnel vision syndrome!
3️⃣ In farming specifically, I'm personally excited about the some of the offsetting schemes like Agreena that funds #regenerativeagriculture practices in farms. Power Purchase Agreements is another example of empowering suppliers to adopt renewable energy.
Comments