The Matcha Initiative

Assess the sustainability baseline of existing supply chain - INTERMEDIATE

Cost

LOW

Cost

MEDIUM

Cost

HIGH

EFFORT

low

EFFORT

medium

EFFORT

HIGH

IMPACT

low

IMPACT

MEDIUM

IMPACT

Impact

HIGH

Conducting a baseline assessment of your company's supply chain sustainability involves assessing and understanding the current state of environmental and social impacts in your end-to-end supply chain.

You can start by asking suppliers to fill a simple pre-/re-qualification ESG assessment. Ask about their environmental policies, waste management, energy usage, labor practices, supply chain transparency, and any initiatives they have implemented to reduce their environmental footprint. Check their EcoVadis score.

For critical suppliers a more in depth assessment can be implemented including annual data collection. Here's a step-by-step guide to help you do so:

1. Define scope and boundaries

Clearly define the scope of your supply chain. Identify key suppliers, manufacturers, distributors and customers to include in your scope.
Determine the boundaries of your assessment, such as geographic locations, product lines or specific processes.
Create a visual representation of your supply chain, identifying key nodes and connections. This can help you understand the flow of materials, information and impacts.

Tip: You may want to start with your internal supply chain to gain a better understanding of the baseline assessment, then extend it to your key suppliers and downstream supply chain. ‍

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‍2. Identify key sustainability metrics

Select key performance indicators (KPIs) and metrics that align with your sustainability goals. One practical option is to reuse the "Common Set of Core ESG Metrics from SGX" and adapt it to your business and scope.
Common metrics include carbon emissions, energy use, water use, waste generation, social responsibility and ethical sourcing.

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3. Gather data

‍‍Collect relevant data from your supply chain partners using methods such as surveys, interviews and data sharing agreements.
Consider using technology and software solutions to streamline data collection and improve accuracy. Examples of reporting platforms are listed in the supplier list below.

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4. Assess environmental impacts

Assess the environmental impact of your supply chain.
Use life cycle assessment (LCA) methods on representative products to understand the full environmental footprint of your products or services.

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5. Assess social and ethical practices

Assess social and ethical practices in your supply chain, including labour conditions, human rights and ethical sourcing.
Consider certifications and standards relevant to your industry (e.g. Fair Trade, ISO 26000) to guide your assessment.

> 90%

of natural capital impact (eg, affecting air, soil, land) of consumer sector is in supply chains.
(McKinsey)

ADDITIONAL RESOURCES

For Carbon:
- Refer to the Carbon footprint solution

For Waste:
- Use the Industrial Waste Flow Mapping Handbook from Malardalens Hogskola Eskilstuna Vasteras to analyse your waste in manufacturing
- Leverage the SG Mandatory Waste Reporting system to report the waste generated by manufacturing and supply chain activities. Use NEA's reporting template to classify waste

For Water:
- Water Footprint Network (WFN): The Water Footprint Network offers a standard methodology for calculating the water footprint of products and supply chains. It considers both direct and indirect water use.
- ISO 14046 Water footprint: This international standard provides guidelines for assessing and reporting water footprint, helping organizations understand and manage their water-related impacts.

For Social and Ethical:
- B Corp assessment