Article

How companies are partnering with suppliers to deliver social impact

Firms are adopting responsible business practices that go beyond regulatory compliance

May 10, 2023

Today’s supply chains need to be more than efficient and reliable. Increasingly, they must meet a growing range of environmental and social targets – and the pressure is on companies to show that they do.

An estimated 70% of a large organization’s sustainability impact comes from its supply chain and Scope 3 emissions are on average 5.5 times higher than a company’s direct emissions, according to CDP.

Meanwhile, growing societal focus on gender, social, and racial injustice, plus legislation including modern slavery acts and EU guidance on forced labor, have increased the focus on the governance required to manage the huge network of service suppliers attached to buildings.

It means firms are starting to take a closer interest in the operations of those they do business with, says Hannah Dwyer, EMEA Head of Work Dynamics Research.

JLL’s Social Value research shows that one in two organizations are already engaged in responsible procurement practices. Furthermore, 62% say they now have a social value strategy that addresses responsible procurement.

The UN defines sustainable procurement as making sure that products and services bought are as sustainable as possible, with the lowest environmental impact and the most positive social results.

“A significant proportion of JLL’s spend is managed with our supply partners,” says Janette McCormick, JLL’s Global Head of Product Sourcing & Category Management. “Taking an intentional and responsible approach demonstrates our corporate commitments – but it also makes good business sense.”