Companies increasingly depend on executives’ soft skills

With increasing frequency, the tasks of supply chain executives at home and abroad require them to use their so-called ‘soft skills’. This is clearly apparent from the responses by executives about reducing Scope 3 emissions and retaining the organization’s talents. “But the whole leadership team has to get behind these ambitions.”

Europe’s largest companies are required to account for the CO₂ emissions in their supply chains every year. So is it the job of the chief supply chain officer (CSCO) to initiate and support projects to reduce these Scope 3 emissions (the CO₂ emissions throughout the lifecycle of all products the company buys, manufactures and/or sells)? Yes, according to the CSCOs of AkzoNobel, Heineken, Bayer and Vestas. They are uniquely positioned to do so, but they cannot single-handedly reduce emissions from suppliers and customers. “The whole leadership team has to get behind this ambition.”

Every year, Supply Chain Movement asks supply chain executives which two megatrends will have the greatest long-term impact on business operations. Just like last year, sustainability and scarcity of raw materials are at the top (74%), closely followed by digitalization and technological change (63%). Following very far behind are other megatrends such as globalization (21%), labour market scarcity (21%) and reshoring (15%).

However, the fact that long-term sustainability has such a big impact does not mean that it is also currently the most important topic of discussion in the boardroom. That is digitalization and transformation (58%), closely followed by cost reduction and operational excellence (53%). Sustainability only comes fourth (32%), behind customer excellence and product portfolio optimization (37%).

That sustainability is so low on the agenda of executives is particularly striking, given the fact that the Corporate Sustainability Reporting Directive (CSRD) came into force on 1 January. Since the start of this year, all large companies in Europe are required to report on sustainability according to tight guidelines. … … …

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