10 ways to... set up a green supply chain

Selecting and managing your suppliers so you receive the most environmentally friendly products and services can reduce your costs, underpin a positive PR strategy, and increase your customer base. In the third of a series of articles on green business, Tom Whitney helps you create a green purchasing strategy
  1. Review your supply chain and identify which of the products and services you buy have the greatest impact on the environment, whether through consuming natural resources or polluting the environment.
  2. Assess your suppliers' environmental policies and procedures. Look at any reports or business plans they produce to see whether they pay attention to their environmental performance. Ask if they have environmental management systems in place and if they buy raw materials from sustainable sources. Also assess their packaging, purchasing practices and delivery methods.
  3. Encourage your current suppliers to go green. It is easier and cheaper to stay with existing suppliers than to switch. But if they do not pay attention to their environmental performance, consider moving to suppliers who do.
  4. Make sustainability a requirement of your tendering process. This means suppliers will know what is expected of them environmentally when they approach your business.
  5. Buy locally. It can cut your costs and shorter delivery distances reduce the carbon footprint of the product or service. Encourage your suppliers to use low-carbon vehicles and to group multiple part-load deliveries together where possible to reduce carbon emissions.
  6. Research green suppliers on the Internet. The London Environmental Support Services (LESS) website has links to quality-assured, eco-friendly suppliers in waste management, energy efficiency and recycling. Contact your local Business Link for details of any environmental support services they provide in your region.
  7. Buy goods made from reclaimed and recycled parts or materials. Using these in your business will demonstrate your commitment to sustainable procurement. To find out more about buying recycled materials, visit the Waste and Resources Action Programme (WRAP) website.
  8. Switch to an environmentally friendly energy supplier. Most energy companies offer energy from renewable sources. To compare business energy suppliers visit the UK Power website.
  9. Use green financial products and services - including bank accounts, credit cards, insurance and pension funds. Ethical banks, such as Co-op and Triodos, offer eco-friendly bank accounts; insurance firms, such as Ibuyeco, can provide lower insurance premiums for low-emissions vehicles, while 50 per cent of the profits from Barclaycard's Breathe credit card are spent on carbon reduction initiatives.
  10. Buy low-emissions vehicles. As well as benefiting from tax breaks by buying a low-carbon or hybrid vehicle, you will reduce your fuel spending as well. For more information about vehicles with the lowest carbon emissions, visit the Vehicle Certification Agency website.