The Sustainable Supply Chain and Small/Medium Enterprise (SME) Programme bridges crucial gaps in action, knowledge, and advocacy required to accelerate sustainability in global supply chains and future-proof SMEs for the green transition. Our national and global multi-stakeholder collaboration platforms convene key players from developed and emerging economies to tackle the most pressing challenges to sustainability in global supply chains – fostering exchange, collaboration, and innovation, and facilitating  inclusive market and financial incentives to encourage businesses of all sizes to take action.

Background

Supply chain sustainability has a profound impact on global progress toward the Sustainable Development Goals (SDGs) and nearly two-thirds of companies’ environmental, social and governance (ESG) footprint is attributable to suppliers. While large corporations often dominate sustainability discussions, SMEs remain key drivers of global sustainability progress and economic growth – accounting for 90 percent of businesses and 50 percent of total employment worldwide, as well as nearly 40 percent of GDP in emerging economies. 

However, SMEs face significant roadblocks in adopting sustainable practices and seizing business opportunities in the green economy, including access to finance and information, heightened vulnerability to supply chain disruptions and inflation, and difficulties adhering to reporting requirements in a rapidly evolving and complex regulatory environment. These challenges are even greater for minority-owned businesses facing constraints that further limit their access to finance, such as higher rates for capital due to limited access to assets, shorter credit histories, and discrimination on the basis of gender, age, race, sexual orientation and gender identity. The UN Global Compact takes an inclusive and future-facing approach to these issues, addressing the particular needs of SMEs and leading a portfolio of multistakeholder initiatives accelerating progress at the local, national and global levels.

Objectives

In collaboration with UN Global Compact Participants (20,000+ businesses), UNGC Regional Hubs, UNGC Local Networks (60+ countries), and PRME (800+ academic institutions), the Sustainable Supply Chain and SME Programme leads dynamic global and national multi-stakeholder collaboration platforms to accelerate sustainability in global supply chains and future-proof SMEs for the green transition by:

• providing a platform for structured global exchange on supply chain sustainability, including best practices, challenges, market trends, and opportunities;
• executing a range of national and regional impact projects, activities and partnerships; and 
• addressing the specific obstacles faced by SMEs and suppliers in the adoption and implementation of sustainable practices.

Core activities

This programme provides an exclusive platform for global exchange, business action, and country implementation. Its core activities include:

1. Global exchange platform – UNGC leads several communities that play a crucial role in supporting SMEs in the green transition and accelerating global progress on supply chain sustainability, such as:
   • Global Alliance on Sustainable Supply Chains (name TBC) is a multistakeholder community of public, private, and academic leaders shaping policy dialogue, action, and advocacy on sustainable supply chain management as well as the specific needs of SMEs in this process. Long term outcomes include creating an enabling environment for SMEs to gain competitive advantage, and co-designing and implementing action plans to harmonise sustainable and inclusive supply chain best practices (as reflected in new regulations, standards, and norms).
   • SPARK is a community of SMEs participating in the Global Compact and suppliers of large firms within our network sparking targeted action on urgent challenges faced by SMEs, such as scope 3 emissions, gender equality, anti-corruption, sustainable finance, and corporate sustainability reporting. SPARK leverages regional Hubs, partner institutions, and industry experts to provide businesses with the tools and knowledge required to improve their sustainability strategies and access to new sustainable economic opportunities. Participants also acquire a deeper understanding of their maturity level against reporting metrics and position themselves as preferred suppliers for socially and environmentally responsible customers.  
2. Country implementation – UNGC oversees local and national activities which have proved successful in supporting SMEs and reshaping supply chains for a more sustainable future, such as:
   • Sustainable Supplier Impact Pilots (SSIPs) are industry-specific projects facilitated by UNGC and country networks to promote deeper collaboration between large UNGC member companies and a subset of their suppliers on urgent sustainability challenges. Pilots establish a community of practice for collaborative learning, facilitate market and financial incentives for SMEs and equip suppliers with the knowledge and tools necessary to operationalize the UN Global Compact’s Ten Principles. SSIPs have been successfully implemented in India (with Mahindra), Nigeria (with Dangote), Kenya (with Safaricom), and Spain (with various companies), as well as in a global pilot with a multinational company. 

• Global Compact Country Networks are independent, self-governed entities that work closely with UNGC to advance sustainability and responsible business practices at the national level. Many Country Networks have led successful projects advancing sustainability in supply chains and supporting SMEs, such:

• • The project SME ESG Hub, led by the Global Compact Networks in Malaysia and Brunei, is an online resource platform with a plethora of interactive tools, assessments, and self-paced courses developed for Malaysian SMEs to learn step by step how to design, implement and achieve their sustainability goals. 

• • The project Durabilité d’Entreprises in Africa, led by the Global Compact Network in France, in collaboration with Networks in the Democratic Republic of the Congo, Morocco, Tunisia and the Indian Ocean Region. This project aims to unpack the business case for sustainability and provide African companies across a variety of industries with the knowledge and tools required to fully integrate sustainability into their business strategies and operations.

How will I benefit from joining this programme?

• Small and Medium Sized Enterprises (SMEs) will gain competitive advantage through market and financial incentives, brand their business as a preferred supplier for socially and environmentally responsible customers, and obtain access to a global community of practice and national-level impact projects for collaborative learning and targeted action on urgent challenges faced by SMEs, such as scope 3 emissions, sustainable finance, and corporate sustainability reporting.

• Large companies will position their businesses as ESG leaders strengthening inclusivity, innovation and sustainability in the global supply chain ecosystem, by partnering to provide market and financial incentives to SMEs and suppliers with diverse leadership, and advancing policy and advocacy initiatives on sustainability at the national and global levels.

• Governments will publicly demonstrate their global commitment to supply chain sustainability, including by providing policy insights, data and best practices to support the widespread adoption of ambitious sustainability strategies by businesses of all sizes.

What does the UN Global Compact offer?

The UN Global Compact is a leading actor in promoting sustainability across supply chains and SMEs, and offers a diverse range of policy and advocacy opportunities to drive the agenda on particular issues at its high-level events, along with tailored capacity-building, tools and resources, in-person and online training programmes (via UNGC Academy) tailored to the needs of SMEs and big companies, and technical assistance with best practice guidance built on more than 20 years of successes.

When companies join UNGC, we become their guide along every step of this journey – helping them commit to, assess, define, implement, measure, and communicate their sustainability strategies to achieve their ambitious ESG goals. Participation in the UNGC also provides benefits such as:

• Unprecedented networking access with UN Global Compact participants (representing nearly every industry sector and size in over 160 countries)
• Access to partnerships with a myriad of stakeholders across sectors sharing best practices and innovative solutions to sustainability challenges
• Local Network support in more than 60 countries
• Moral authority, knowledge and experience of the United Nations

How can I get in touch with the team?

For more information, please contact Anna Mori (Senior Programme Manager, Sustainable Supplier and SME Programme) at anna.zaleskimori@un.org.

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