Being transparent about your supply chain to satisfy your customers

What, where and how

It is younger generations who ask questions about a product’s origin, its ingredients and the circumstances in which employees work. They are willing to pay more for sustainable goods with a transparent and inspiring story.

And not just consumers demand more information. European Commission proposals for a Corporate Sustainability Reporting Directive and the EU Taxonomy Act show that transparent communication about the supply chain has entered the domain of legal compliance. Information that builds the story for consumers also provides your license to produce.

Collaboration platforms

There are different ways to achieve sustainability and transparency. For common commodities with a significant impact on our planet, companies can participate in collaborative platforms, such as the Round Tables on Responsible Soy and Sustainable Palm Oil, Better Cotton Initiative and CEO Water Mandate.

Sharing success

Although these platforms help organisations to better understand their supply chain, it may not be sufficient for consumers and investors. Mobilising your supply chain partners and collaborating on sustainability goals is another proven method. Decide on a timeline to meet the required standard and plan how to work together on that journey. Involve your investors too. Negotiate with them on lowering loan interest rates if you exceed your goals, and raising them if you do not achieve the targets. That is sharing the effort to become more sustainable.

Does your company really care?

People want to know what a company cares about – what corporate social responsibility actually looks like. What are the company’s mission and values? How are products manufactured? Is it a purpose- driven company? And what is it trying to build for us as a society? In recent McKinsey research in Europe, 63% of consumers said they considered a brand’s promotion of sustainability to be an important purchasing factor. This applies to pet products too.

A personal story builds your relationship with the consumer. It connects them with the person who made their pet product or produces its ingredients. This requires close collaboration with suppliers.

Details and data

Find a good balance in providing enough and understandable information while avoiding a sense of ‘greenwashing’. Talking clearly about what sustainability means to you, with detailed and feasible claims, does build trust. It also enhances collaboration within your supply chain. Tell people who follow you on social media where they can find further information, data and reports.

Transparency is essential for business

For companies in the pet industry, communicating transparently about a responsible and sustainable supply chain is the key to a good consumer relationship. And as future generations and institutions are expected to become more demanding in the coming years, now is the time to step up and build your story together with your supply chain partners.