Support Innovation

Solicit ideas from your value chain

You can create opportunities for value chain innovation by opening the floor to ideas from various sources, including current suppliers, customers, and potential new suppliers. Start by transparently communicating your sustainability challenges to your value chain partners and see who might be interested in helping develop solutions. Consider implementing models for capturing these ideas, such as: crowdsourcing platforms, supplier innovation days, or open invitation contests.

Potential partners could be sustainability-oriented start-ups, social enterprises, or current suppliers open to experimenting with new sustainability solutions. These partnerships can be invaluable, especially when sustainable alternatives are not yet available at scale.

EXAMPLE: Consumer goods company partners with social enterprise to improve plastic recycling

Henkel, a German chemical and consumer goods company, was the first major company to partner with the Plastic Bank to support its goals around closed-loop recycling.¹ The Plastic Bank is a social enterprise that sets up recycling systems in coastal communities to collect plastic waste and reintegrate it into the global manufacturing supply chain.

EXAMPLE: Electronics value chain participants team up to pilot circularity

Three members of the hard disk drive value chain—Seagate (supplier), Google (buyer) and Teleplan (recycler)— teamed up to pilot rare-earth metals recovery. The proof-of-concept effort successfully recovered rare-earth metals from Google’s retired hard drives and coordinated new material flows to return rare-earth metals into production.²

EXAMPLE: Interface's journey to 100% recycled nylon carpet

Carpet manufacturer Interface worked diligently with its suppliers for over a decade to develop a supply of recycled nylon, enabling them to create a 100% recycled nylon carpet.³

Invest in value chain innovation

You can further support innovation by providing grants and funding or co-developing solutions through pilot projects or R&D alliances.⁴ You may also consider creating an incubator or accelerator program targeting specific sustainability challenges. Such programs can support early-stage companies that have the advantage of greater agility and disruptive potential than more established organisations.

EXAMPLE: Disney solicits sustainability solutions through open grant application

Disney Supply Chain Investment Program (SCIP) aims to address poor working conditions in its key sourcing markets. Through an open grant application, the company solicits scalable solutions from non-profits, social enterprises, and other NGOs.⁵

EXAMPLE: Apple created Impact Accelerator to support supplier diversity and sustainability

Apple’s Impact Accelerator supports black- and brown-owned businesses that provide sustainability solutions, such as renewable energy, carbon removal, recycling innovation, and smarter chemistry. The accelerator offers chosen suppliers customised training, mentorship, and strategic partnership opportunities.⁶

EXAMPLE: BHP invests in start-ups to help reduce upstream emissions

Most of the mining company’s emissions result from the processing of ores by upstream value chain partners. To address its Scope 3 emissions, BHP invested in Boston Metal, a start-up using technology to produce emission-free steel.⁷

EXAMPLE: Mars creates sustainable investment fund to harness supplier innovation

Mars Sustainability Investment Fund (MSIF) is $250 million fund designed to provide capital to companies across Mars' value chain that are developing sustainability solutions.⁸ The company is focused on investments in technologies that reduce the emissions associated with agricultural inputs and ingredient where most of the companies greenhouse gas emission stem from. It also seeks solutions to single-use plastics that can create pollution and emissions.