What does sustainability in SRM encourage in relation to environmental practices?

Sustainability in Supplier Relationship Management (SRM) emphasizes the importance of minimizing environmental impact and promoting responsible sourcing practices. Compliance with regulations is a key element of sustainability because it ensures that organizations adhere to legal standards designed to protect the environment. By following these regulations, companies not only avoid legal penalties but also enhance their reputation and contribute to broader environmental goals.

Sustainability encourages organizations to seek suppliers who align with eco-friendly practices and navigate regulations that often promote sustainability. This focus on compliance indicates a commitment to environmental stewardship, helping organizations reduce their carbon footprints and utilize resources more efficiently while fostering relationships with suppliers that prioritize sustainability.