Environmental, Social and Governance (ESG), and sustainability, are key elements for businesses across a range of sectors and a major area no organisation can afford to ignore. In the industrial sector, is it an ever-present issue, and finding ways to include sustainable practices is a continual commitment.
Some of these practices include creating operational efficiencies that lead to a lower carbon output, like optimising energy consumption, or reducing water waste or reliance on freshwater, and reducing transport emissions. Using maintenance, repair and operational (MRO) providers who offer sustainable products and service solutions can also be key to helping manufacturers to meet net zero goals.
Sustainability intentions need to be underpinned by knowledge
Opting for products with sustainability credentials seems like the obvious choice in the quest for net zero, but sourcing these options or verifying sustainability claims can often be challenging. Add to this the fact many organisations are facing procurement pressures like skills shortages and stretched resources due to limited budgets, and it’s easy to see how it’s not always viable to spare time to gain knowledge of the more sustainable products available today.
This is where working with partners with expert knowledge can be the answer. Specialist providers of MRO product and service solutions can help with knowledge of the latest innovations in more sustainable product development. They can also conduct activities like audits to ascertain consumption, reduce resource waste and advise on whether alternative products can be used that are more sustainable. Perception of higher cost can be a barrier to adopting greener alternatives, but a specialist can help with product recommendations that needn’t cost the earth.
Expert providers will also be best placed, through close collaboration with manufacturers, to be across the latest innovations, as well as be able to communicate to them what it is that customers really need.
More sustainable products should be clearly identifiable
If awareness of more sustainable options is to be higher, identifying them needs to be easier. It’s a key issue for buyers. RS’ indirect procurement report 2024 ‘Maintaining Focus’ identified that nearly three-quarters of respondents ranked ESG criteria as either ‘important’ or ‘very important’ when it comes to selecting suppliers, products and services. Many more buyers of industrial products could be more likely to make sustainable choices if the products were clearly labelled and the source of claims reliable and verifiable. It is no longer acceptable to just tick boxes, buyers want to make meaningful choices and create genuine positive impact on the planet.
RS’ Better World product range, launched in 2022 and continually expanded since then, comprises a 30,000-strong range of products independently proven to be either: made more sustainably, offer a sustainable solution like reducing energy and emissions, or have features supporting circularity, like an increased lifespan due to being reusable, recyclable or repairable. The product range is backed by a transparent claims-based framework in which the methodology of qualification is available for all products in the range. Being able to easily choose sustainability, with peace of mind of trusted verification, can be the difference between doing so and not.
The range is constantly being added to with the goal of expanding it to 100,000 products. More suppliers are moving towards the provision of such products, and the best way for a buyer to verify sustainability claims is to ensure they have third party credentials and certifications. More sustainable product options can be driven by demand from buyers too, so they must consider the part they play in driving development of verified, greener options.
Optimising the supply chain is key for sustainability
It is estimated around 60 to 90 per cent of an organisation’s carbon footprint comes from its supply chain. Working with providers offering transparency and traceability of products they supply can help industrial organisations in their net zero mission.
Using vendor managed procurement and inventory services can also create real efficiencies, leading to more sustainable outcomes in a variety of ways. Procurement teams and engineers face challenges with sourcing industrial consumables and the supply base is often fragmented. This not only leads to higher process costs in procurement from multiple suppliers, but can also lead to product waste, which isn’t environmentally friendly.
When a product is overstocked due to poor inventory management, it can lead to obsolescence, which means wastage. Or when using multiple suppliers for products split across a variety of categories, the carbon footprint of transportation, and other processes, that this incurs is much higher than when consolidating product suppliers, or using managed procurement and inventory.
Firms offering this service also hold consumption data, invaluable in procurement. Buying products only when needed and not having to ‘emergency’ buy due to unexpected shortages, creates bottom line savings. It also frees up storage space and has a positive environmental impact due to transporting products only when necessary. And it allows the provider to be able to suggest more sustainable product alternatives possibly not considered before.
The quest for sustainability isn’t straightforward and the landscape is an evolving one. Net zero is a shared goal and needs to be a collaborative effort from manufacturers, suppliers, solutions providers and end users. But working with experts with the right knowledge and a transparent approach can help buyers in the industrial space make more sustainable product choices.
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