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Scale of sustainable supply chain challenges calls for ‘shared impact’ from businesses

As this week’s key conference in London organised by the Economist notes, the concept of sustainability is under attack with increasing pushback against environmental, social, and governance (ESG) from politicians and business leaders, particularly in the US and some European markets

Image shows a map of global supply ports
Businesses are under increasing pressure to navigate global supply disruptions. Image: Martin Sanchez / Unsplash

Critics argue that ESG policies impose excessive regulatory burdens, reduce financial returns, and promote a politically driven agenda. 

Global supply disruptions are also intensifying due to climate change, regulatory requirements, poor value chain management and exploitative labour practices. 

Against this backdrop, businesses face mounting pressure to ensure their supply chains are resilient, sustainable, financially viable and ethically responsible. 

'New perspectives on old problems'

Kerrina Thorogood, partnerships director at the Fairtrade Foundation, will speak this Wednesday (12 March) at the Economist’s Sustainability Week Conference when she joins a panel: ‘New Perspectives on Old Problems: Navigating Global Supply Disruptions and Building Resilience’.

She said: “It’s clear that businesses are under increasing pressure to navigate global supply disruptions while ensuring their supply chains are resilient, sustainable, and ethically responsible. Climate change, regulatory pressures, and ethical concerns pose growing risks that businesses must address. However, tackling these challenges alone can be costly, complex and incredibly difficult.”

The Fairtrade Foundation calls for pre-competitive collaboration to address these challenges, recognising that no single company or producer can solve the scale of today’s supply chain challenges alone.

A 'Shared Impact' approach is needed

A ‘Shared Impact’ approach is Fairtrade’s solution, uniting retailers to pool sourcing of cocoa, bananas, or coffee. Approved by the CMA (The UK Competition and Markets Authority) in 2023, it strengthens supply chain resilience, boosts producer incomes, and enables long-term sustainability investments through fair pricing and strategic interventions.  

Thorogood said they’ll explore the critical pinch points in global supply chains and how businesses can tackle them through collaboration, ethical sourcing, and shared responsibility. 

This, in turn, ensures that farmers have the resources to withstand economic and environmental volatility. 

“I look forward to the discussion and to highlighting how innovative models like Shared Impact can help businesses strengthen their supply chains while exercising responsibility to stakeholders, investors, and consumers." 

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