Advocacy for a Mentoring Program for SME Suppliers: Elevating the Entire Supply Chain

With growing regulatory pressures and consumer expectations, large companies increasingly look to their supply chains to improve their environmental impact. Reducing greenhouse gas (GHG) emissions is critical, but this process cannot be limited to a strict selection of suppliers who already excel in sustainability. The strategic goal is to support and raise the overall standard of the entire supply chain, particularly among SMEs. Here’s why a mentoring program is the key to this transformation and how industry leaders embrace this inclusive approach.

An Inclusive Program, Not a Selection Criterion

Launching a mentoring program for SME suppliers should not be seen as a rigid selection tool but as a support initiative to raise overall sustainability. Many SMEs are not yet ready to meet strict environmental performance criteria. Excluding them at this stage would weaken the resilience of our value chain and miss the opportunity to build long-term partnerships with companies that may still need to be fully developed but are willing to engage in a trajectory of progress.

The most strategic approach is to help these SMEs transition by providing them with resources, training, and tools to improve their practices. This support benefits SMEs and leading companies by ensuring a more resilient supply chain that meets future regulatory requirements and climate challenges.

Inspirational Initiatives: Raising the Global Standard

Leading companies have already understood the importance of helping their suppliers in their environmental transition rather than selecting them based on current performance levels. Here are five concrete examples that highlight the positive impact of this inclusive approach.

1. Walmart and Project Gigaton

In 2017, Walmart launched Project Gigaton, an ambitious initiative to avoid 1 billion tons of GHG emissions by 2030. This program targets all its suppliers, offering tools to identify and reduce emissions in various areas, from waste management to energy efficiency. The goal is to improve the environmental performance of the entire supply chain without discriminating against SMEs.

2. Ikea and the Climate Action Program

Ikea has integrated sustainability into its supplier partnerships through the IWAY Standard and Climate Action Program. Rather than simply selecting the top-performing companies, Ikea actively supports all its SME partners. This program allows every supplier to improve its processes by encouraging the use of renewable and recycled materials in the products supplied. As a result, Ikea ensures that its partners progress, regardless of their starting point.

3. Unilever and Partner to Win

With its Partner to Win program, Unilever has taken a similar approach. This program combines training and assessment tools to help suppliers reduce their emissions and improve sustainability. Instead of imposing rigid selection criteria, Unilever embraces an inclusive approach, supporting the rise in sustainability performance across all its suppliers. This enables Unilever to meet its environmental commitments while maintaining solid relationships with its SME partners.

4. PepsiCo and Supplier LoCT

PepsiCo’s Supplier Leadership on Climate Transition (Supplier LoCT) program, launched in 2021, aims to help suppliers reduce carbon emissions. It is a collaborative program that provides training and resources to assist SMEs in their environmental transition. Rather than focusing on a small group of top-performing suppliers, PepsiCo ensures all its partners receive the necessary support to adapt to environmental challenges.

5. Schneider Electric and the Zero Carbon Project

Through its Zero Carbon Project, Schneider Electric supports 1,000 key suppliers in reducing their GHG emissions by 50% by 2025. The goal is to raise the overall level of environmental performance among all partners, offering technical support, personalized advice, and training. Instead of focusing on rigid selection criteria, Schneider Electric transforms its entire value chain.

6. Proximus and its Supplier Engagement Program

The telecom operator Proximus sets an example in Belgium with its Partner Program. It is highly didactic and filled with practical advice, tools, and contact information for consultants who can support SMEs in their sustainability strategy.

A Win-Win Model

These examples show that helping SMEs transition to sustainability is a good environmental practice and a strategic lever to strengthen supply chain resilience and innovation. Assisting suppliers in progressing helps minimize future risks associated with regulation and energy price volatility while reducing long- term costs for the leading company.

An inclusive mentoring program that raises the level of all suppliers also fosters a virtuous circle of innovation. SMEs are often more agile and able to experiment with innovative, sustainable solutions which benefit the entire value chain. This approach also strengthens trust between the company and its partners, which is essential in the context of growing environmental demands.