Sustainability isn’t just a buzzword: it’s a strategic imperative that expert companies and general contractors take advantage of to propel themselves toward a future where environmental responsibility seamlessly converges with profit margins.
Transforming a steel supply chain (or any supply chain, for that matter) into a sustainable value chain it involves more than rethinking blueprints and selecting products with a green label. It includes focusing on global issues such as minimizing environmental and human impact and it requires the adhesion of all stakeholders involved in the production and value-added activities required to make a product, such as steel. enableis decarbonization at every step.
Fortunately, industry-wide collaboration, transparency and technology are supporting the creation of sustainable value chains like never before. Here’s how.
Realize the vision through a purpose-driven culture
One of the first steps in creating a sustainable value chain is to guarantee buy-in, as well as a commitment to decarbonisation by suppliers, builders and owners, he says Richard Leypurchasing manager a BlueScope Buildings North Americaresponsible leader in smart steel solutions within the built environment.
This commitment must go beyond a surface level commitment and mean a dedicated effort towards decarbonisation. Business decisions must transcend economics and be based on a strong culture of care that embraces a broad vision of sustainability and our collective future.
“We could say, as a company, that the only thing we are interested in buying is the lowest possible cost steel. But that’s a very narrow position,” says Ley.
“At BlueScope Buildings, we choose to partner with suppliers who actively set goals and targets to reduce their carbon footprint. While not all will be carbon neutral tomorrow, we believe we are on track to provide solutions with low carbon emissions,” says Ley.
“We want to know the whole story of the parts and products we receive, so we are investing in this continuous journey of discovery,” explains Ley.
With the right collaborative providers, the next step is to use technology (more below) to reimagine like the materials they are produced, procured and used while building a reliable and sustainable supply value chain, he says.
Last but not least, iInnovation is another key to creating a sustainable value chain, Ley notes. Invest in i partnership with start-ups tin shake up the construction industry with new ideas and tools that support sustainability efforts.
Use data to drive more informed supply decisions
The construction The process can be particularly difficult to decarbonize because there are so many stakeholders along the supply chain, he says Shane Hodgkinsco-founder and CEO of matraka software company focused on transforming global construction supply chains by connecting materials.
To enable more sustainable optionsyou need be able to collect much more information from each of them those interested of what has traditionally been done, he says.
When materials from 50 or more suppliers arrive at a job site, it’s nearly impossible to tell them apart, he says. However, better data can help provide companies with traceability and visibility into a supply chain.
Using Matrak’s material tracking platformcompanies can track key markers, like the incorporated carbon of their products and make this information available to the companies they work with.
“You end up getting these connected supply chains,” he says. “And companies can make better purchasing and supply chain decisions based on this real-time data about the embodied carbon impacts of their choices.”
Have access to data everywhere Hodgkins says the entire supply chain, including visibility into each product and where it’s going in a project, also helps companies reduce waste and streamline decision-making.
“[Companies are] able to share critical information upstream and downstream as they complete their work.”
Leveraging AI for EPD and Life Cycle Analysis
life cycle analysis of its environmental impact construction project is a complicated but necessary process for construction companies looking to decarbonize their supply chain, he says Calm Sandemanthe co-founder of waysa platform for manufacturers that simplifies the creation of product life cycle analyses.
Fortunately, AI I can help make sense of the different data formats that companies create, still enabling another way to earn greader visibility of yours supply chain, says Sandeman.
Pathways’ technology solution sits on top of material manufacturers’ data layer, integrating into procurement systems, invoice documentation, safety records and utility bills. This integration gives performance very detailed product level life cycle analysiswhich is crucial to develop and maintain Environmental Product Declarations (EPDs).
EPD, emerging as a standardized way pass on the environmental impacts of a product, are not intended to be static sources of information.
“One of the exits from [your lifecycle analysis] is that you can update, renew and publish your EPDs,” says Sandeman.
“Because Pathways is integrated into the data stack, it’s not a single snapshot. If you make changes to your process, if you have decarbonization initiatives, that will be represented in the data.”
Collaborating with like-minded partners to use and develop tools, EPDs and improved materials tracking is critical to creating a sustainable value chain.
Success through integration
Success in embedding sustainability in supply chains requires leading with purpose and care, while challenging the status quo. Organizational cultures that value transparency, accountability, specificity and openness to explore emerging technologies will be able to create value chains within the construction industry that help them accelerate and achieve their sustainability goals.
