Posted on 17 August 2023

Collaborating with suppliers on sustainability topics has multiple benefits, including process improvement, cost reduction, enhanced supplier loyalty, and increased resiliency.

Water stewardship goes beyond improving efficiencies and management within a company's direct operations. It also involves collaboration with suppliers, engagement in basin projects, and involvement with local communities and stakeholders. By collaborating with suppliers, companies can address water impacts at the source of the impacts and dependencies and create greater resiliency within their supply chains.
 
To effectively collaborate with suppliers, companies can explore various pathways, such as improving operational practices, supporting access to finance, advocating for better industry practices, and incentivizing supplier action through procurement. These pathways aim to enhance suppliers' practices, improve the operating environment, and standardize sectoral practices.
 
Companies can use various approaches, such as contractual incentives, benchmarking, training programs, and best practice guidance, to encourage supplier participation in sustainability initiatives.
 
Overall, there is no one-size-fits-all approach to supplier collaboration, and companies should have a menu of different collaboration pathways to choose from based on their unique context and goals. This is a preview of a guide that will be published later this year and aims to provide a menu of possible collaboration pathways that can help a company begin to identify the most effective approach for their unique business model.