The concept “Transparency in the Supply Chain”

MNEs have extensive, often growing, chains of suppliers in emerging economies. The actual production process of many companies products take place in their supply chain. This is also the place where the most important sustainability impacts occur such as human labor issues, the use of natural resources and CO₂ emissions.

It is sometimes a challenge for MNE buyers to understand and improve their sustainability impact outside their in-house operations. However, improving their external impacts is often where they can make the most significant changes towards a more sustainable world.

Other companies in the supply chain – including SMEs - can and need to contribute in the creation of truly sustainable products and production processes. This collaborative GRI - GTZ project explores the possibility of how transparency within the supply chain can contribute to a better understanding of the subject by both the buyer as well as the supplier.

This project intends to go beyond the current system of control. It aims to tackle the subject of sustainability based on the paradigm of mutual trust and equal business relations between buyer and supplier.

The supplier training process

Supporting SMEs in supply chains through training, workshops and resources will build capacity for SMEs to initiate and continue a reporting process, and improve sustainability management and performance. The participating MNEs act as mentors to the suppliers. Training to support the SME handbook has been designed by the GRI and international and regional experts.