In the real world
Key points for companies
Companies already participating in L/JIs should align procurement policies and supplier contracts with the initiative’s objectives. Those not yet engaged should focus on L/JIs in one or more landscapes/jurisdictions where the company buys a lot of product.
External conditions that improve likelihood of success
- Well-articulated jurisdictional targets/objectives
- Good relationships with suppliers in the jurisdiction
- Contracting methods that ensure agreements can be well specified, verified, and enforced by purchaser and supplier
- Effective legal, arbitration, or alternative dispute resolution bodies that allow parties to address conflicts and disagreements
The business case for this intervention
- Referring to L/JI targets when making requests of suppliers can help justify what might otherwise be perceived as burdensome requirements.
- Contracting fairly with suppliers to achieve an L/JI’s objectives strengthens suppliers’ understanding and commitment to mutually desired outcomes.
- Aligning L/JI targets with a company’s policies is a low-cost way to signal long-term support for the sustainability objectives of a landscape/jurisdiction it values.
- This alignment can also help ground and focus further actions the company might take to advance the targets.