Which is better for the environment and economy?

Oct 28, 2021 User settings

Commerce and technology are the driving forces behind Australia’s economy and environment, but what are the best ways to make sure they are both successful?

Commerce and Technology Australia (CTA) has some ideas, and it’s calling on businesses to adopt an approach of ‘diversifying’ their supply chains to help deliver the best outcomes.

Here’s what we learned from the recent meeting of CTA’s executive committee.

CTA chair Peter Gough says companies need to start thinking about what their environmental impact is.

“We need to take into account the impact that there is on biodiversity, on the environment, on how the food supply chain works, so we need to be thinking about all these different factors.”

Mr Gough said companies should be mindful of how they are contributing to climate change and the wider environmental challenge.

He said the industry needed to “think about the environmental and economic costs” of their actions.

“I think the industry will be a lot better off if they think about how they contribute to those.”

But what is the best way to achieve that?

Some of the biggest challenges in the supply chain were identified during the conference as areas that could be improved.

Mr Guff said some companies had a “long term view” on how to address environmental issues.

“They might not be able to solve the environmental issues in their own supply chain in a timely manner, so they need to get on board and take the opportunity to engage with other businesses, and try to find a solution.”

How much does it cost to be green?

What does the cost of green-washing cost?

The cost of sourcing green-washed goods and services can be substantial.

Mr Greer said the cost to businesses of greenwashing was often in the thousands of dollars per year.

“The more the supply chains go, the more the costs can be,” he said.

The CTA report called on businesses “to be proactive in the procurement of goods and the reduction of waste”.

“In a world where we need more sustainable manufacturing and sourcing of goods, businesses are increasingly looking to buy from suppliers who have committed to sourcing locally, to source from local sources of supply.”

But there is also a growing perception that some of these companies are not paying enough attention to the environmental impact of their sourcing decisions.

The report said some of the problems associated with the supply of goods could be linked to how they were sourced.

“If the sourcing is not being properly managed, the environmental impacts of the manufacturing process are not being considered,” Mr Greger said.

“There is a concern that some companies are failing to make a good environmental assessment.”

The CTSA report also called on companies to be transparent about their sourcing.

“When we look at the supply side, there are a lot of red flags,” Mr Grough said.

He added that companies need “to have the courage to tell us exactly what is going on with the sourcing.”

The report also asked for greater transparency in the sourcing of certain goods and processes.

Mr Hock said it was important to be able “to see exactly what’s happening, so you can take action to reduce your environmental footprint”.

“We are seeing a lot more environmental concerns around the supply-chain as we move towards supply chains that are environmentally friendly,” Mr Hocks said.

What can you do to reduce emissions?

While there is some evidence that some goods are being sourced that may not be as green as they are claimed to be, the CTSS report says the biggest environmental issues are around sourcing, sourcing management and environmental quality.

The issue of environmental quality is particularly important, the report said, because the supply and demand chains are a complex and dynamic process.

The problem with sourcing is that it requires a level of expertise in the field that may be difficult to acquire, it said.

And when that level of environmental knowledge is not available, “we may not have the ability to identify and address potential environmental impacts in our supply chains.”

The recommendations from the report include: more transparent sourcing and sourcing management

By admin

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