Manufacturing and Sustainability: How to Win More Bids

If you are in manufacturing right now, sustainability is no longer optional. That is what we have noticed. Your customers are asking for things like, “Do you know your greenhouse gas emissions? What about your electricity?” They need carbon data, even science-based targets sometimes. Often, they are asking for manufacturing and sustainability performance through EcoVadis, too.

If you provide a “no,” then you may lose clients. But if you can provide a “yeah, no problem, we have got it,” then you are going to be ahead of the game. That is what this is all about.

The Massive Shift in the Global Supply Chain

In the last couple of years, we have seen a massive shift. Companies in pharmaceuticals, automotive, tech, and retail are pushing sustainability down the supply chain. This means things are getting real for businesses just like yours.

What are they asking their suppliers? They are asking them to do EcoVadis sustainability assessments. EcoVadis is a third party rating tool that provides a score and some kind of a medal or badge to a company every year. They will probably ask in RFPs or questionnaires if you do Scope 1, Scope 2, and Scope 3 greenhouse gas emissions. They will probably ask if you have any reduction targets. This means knowing your baselines of energy consumption and trying to reduce it by 5%, for example.

A couple of years ago, these were nice to haves. You probably could ignore emails in manufacturing around sustainability, but I am here to tell you that you cannot do that anymore. If you do, you might risk losing current clients or risk losing deals in the future.

What This Means for Manufacturing and Sustainability

I have worked with many manufacturers over the last few years. For most, they have never had to do this before. But now, sustainability in manufacturing industry is something you have to deal with.

The good news is you are probably already doing a lot of the things you need for sustainability efforts. You might have noticed in these questionnaires that they ask if you have safety programs. You probably do. They ask if you track your waste. Maybe you do. They might ask if you track energy consumption. Maybe you have just been paying bills, but it is not impossible to get that data.

Now, you have to start formalizing things and documenting things. You need a tracking sheet of your emissions or your energy consumption and then get scored by a third party like EcoVadis. This is where companies struggle. They give the task to someone who does not know about sustainability, and that is where they trip up. They score lower and may lose that client or bid.

What You Actually Need to Succeed

If you try to fill out the EcoVadis questionnaire by yourselves, I usually see companies land between a 25% and 54% score. It is a big portal and you have to fill out a lot of questions. Here is what is becoming non-negotiable for manufacturers:

• Policies: You need policies in place for energy usage, waste, and water usage.
• Labor and Human Rights: This includes health and safety and working conditions.
• Sustainable Procurement: Looking at your own suppliers.
• Utility Tracking: You need greenhouse gas or utility bill tracking beyond just paying the bills. You need to collect data month over month, count your kilowatt hours, and use an emissions factor to get your Scope 1 and Scope 2 emissions.
• Targets: You need to say, “Yes, we want to get better. We want to reduce energy by 10% in three years.” This is also an ROI because you can save money by reducing energy.
• Alignment: It is good to align to sustainability frameworks like the Carbon Disclosure Project (CDP) or Science Based Targets initiative (SBTi).

Why You Should Outsource EcoVadis

I am a business owner and I try to DIY when I can. However, I have found that EcoVadis and sustainability are things you should outsource. Not everyone knows exactly what they are looking for, and this could mean getting business or losing a client. It takes months for staff to figure out EcoVadis, pulling them away from core operations.

You want to find a company that is an approved EcoVadis consultant and training partner. That means they have gone through the rigmarole and can help you improve scores, build credible programs, and track emissions. At This Rock ESG, our clients typically land around 79% or 80%. We have helped clients improve their score by 30% to 50% compared to doing it on their own.

I have worked in manufacturing myself. I have worn the hard helmet and the steel toe boots before. Sustainability is going to be part of your business because your customers are asking for it. It is a huge advantage to do it now, especially if they are starting to put pressure on you.

Get Expert Help with Your Sustainability Reporting

Don’t let the EcoVadis questionnaire pull your team away from their core work. Our team at This Rock ESG acts as your dedicated sustainability partner. Book a 15-Minute Strategy Call with Lindsay.

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