Selected Industrial Manufacturing References
Manufacturing companies rely on a steady flow of diverse input materials whose upstream production and processing are frequently resource-, energy- and water-intensive. Environmental and human rights challenges abound in lower tiers, including in relation to conflict minerals. Besides, health and safety concerns cascade through the industry’s varied value chains.
IntegrityNext helps you manage the key sustainability risks and opportunities in your supply chain with minimal effort. Our solutions cover the topics most material to your industry and allow you to meet due diligence requirements and boost your sustainability performance:
RoHS and REACH
Risks and Opportunities
The prevailing dependency on resource and input material procurement largely shapes the industry’s supply chain management priorities. Upstream processes such as steel, aluminium, glass or plastics production are highly carbon-intensive and often constitute manufacturing companies’ main sources of emissions. Supply chains can therefore be a critical lever for decarbonisation.
Overall, many risks are linked to lower tiers, particularly in relation to resource extraction and processing. Mechanical engineering, for instance, requires copious amounts of stainless steel. Both the mining of iron ore and production of chromium, two essential components in steel manufacturing, frequently occur in regions that are prone to forced labour, poor working conditions and weak environmental standards. Other upstream processes such as metal casting, stamping or rolling are notably water-intensive and make ample use of hazardous chemical additives. Rigorous due diligence procedures are needed to counter concomitant risks. The same holds true for the procurement of conflict minerals which is strictly regulated in several jurisdictions.
The large-scale extraction of fossil fuels for chemicals and plastics production has equally been marred by incidents of environmental pollution, forced resettlements and disregard for the rights of indigenous people. Health and safety concerns affect workers and local communities in equal measure as they cascade through the industry’s varied value chains. The phase-out of hazardous chemicals and a strong focus on product safety, also with a view to the subsequent use phase, should therefore be key priorities.
Reorienting supply chains towards renewable energy, the use of alternative raw materials and circular product design can help to cut the industry’s carbon footprint, reduce the need for extractive activities and mitigate several of the afore-mentioned risks. In doing so, manufacturing companies can create positive knock-on effects for their own customers. Besides, giving precedence to sustainability can not only bolster supply chain resilience but also turn out to be a differentiating factor in customer bidding and contracting processes.
High resource- and energy-intensity of upstream processes
Pollution risks and safety hazards along the value chain
Poor working conditions and human rights risks in lower tiers
Supply chain as a key decarbonisation lever
Great potential as enabler of sustainable development in other industries
IntegrityNext provides a platform for comprehensive ESG supply chain risk management that allows you to meet due diligence requirements and improve your sustainability performance:
- Carry out a carbon footprint assessment and benefit from enhanced visibility into your suppliers’ emissions data, reduction efforts and targets.
- Analyse the most relevant environmental, social and governance risks as part of a five-step risk management process.
It includes an abstract country and industry risk analysis to deliver initial insights into your supply chain’s risk exposure. Based on more detailed pre-built assessments, which draw on authoritative international standards and conventions, you can monitor your suppliers with respect to the main ESG risks:
Carbon footprint: collection of emissions data, monitoring of reduction efforts and SBTi engagement targets (Science Based Targets initiative)
Use of 3TG, based on the RMI’s Conflict Minerals Reporting Template
Compliance with the European RoHS directive on hazardous substances and REACH
Adherence to universally accepted human and labour rights
Occupational health and safety
We help you identify suppliers with the most severe impacts so that you can develop a coherent strategy and target your preventive and remedial measures accordingly. The results gleaned from the assessments are synthesised in a GRI-certified report that can be readily used for your disclosures.
Meeting customer demands for future-proof and sustainable solutions
"Swisslog is committed to sustainability, not least because our customers expect it. The IntegrityNext solution is exactly what we were looking for to make sure our suppliers are equally as committed.”
Operating in a competitive industry, Swisslog is convinced that supply chain sustainability is key to delivering future-proof and energy efficient solutions that set new standards. The company is committed to meeting the sustainability needs of its customers and was looking for a solution to help them extend this responsibility to the global supply chain.
How IntegrityNext helps
With the IntegrityNext solution, Swisslog ensures a sustainable supply chain, which in turn has a positive impact on the value chains of its customers such as Nestlé and Coca Cola.
IntegrityNext enables Swisslog to collect, analyze and harmonize supplier sustainability data as a basis for purchasing decisions. The company uses the IntegrityNext report to disclose its efforts to existing and prospective customers.