Data-driven supply chains: trust, transparency and the road to sustainability
The digital key
The key to achieving sustainability within these complex networks lies in digitisation, specifically harnessing the power of data to illustrate every step of the process. This begins with the adoption of ISO 20022, a standardised approach to payment transaction data. This seemingly technical shift holds immense potential. Embedded within each transaction can be a wealth of information on sustainable practices, labour conditions and resource utilisation throughout the supply chain. Granular data can be like a map, revealing the peaks and pitfalls in terms of environmental and social impact.
The importance of this data goes beyond mere reporting. It paves the way for trust. Consumers and businesses alike are increasingly demanding assurances that their choices align with their values. Transparency is no longer optional - it’s a competitive advantage. When a company can trace a product’s journey from start to finish, backed by verifiable data, it earns trust and loyalty. The old proverb comes to mind – ‘trust but verify.’ Data empowers companies to not only claim sustainability but prove it.
Kyle Boag, Regional Head of Global Payments Solutions, MENAT, HSBC
Wave of innovation
This is where the next wave of innovation is poised to emerge. Imagine using procurement cards that not only track your spending but also capture the carbon footprint of your purchases. This level of insight empowers more informed decision-making, allowing companies to choose suppliers based on their commitment to sustainability practices. This shift aligns with the growing trend of generative AI solutions, being explored by multinationals and shipping companies, to dynamically identify and connect with sustainable suppliers.
However, data alone is not enough. The true power lies in its standardisation and accessibility. Shared data formats and open platforms enable collaboration and collective action across industries. This not only simplifies analysis and assessment but also fosters trust and accountability throughout the supply chain.
HSBC, with its global reach, deep expertise in emerging sustainability standards, and commitment to data-driven solutions, is uniquely positioned to guide businesses on this journey. We finance industries that significantly contribute to emissions, and we understand the urgency of acting upon it. Our goal is to be a partner in sustainability, empowering our customers to reduce their environmental impact and build resilient, responsible supply chains.
The path to a sustainable future lies not just in cleaner technologies and greener materials, but also in the invisible threads of data connecting every stage of the production and delivery process. By embracing digitisation, standardisation, and transparency, we can unlock the true potential of our supply chains, transforming them from conduits of consumption to engines of positive change.
By Kyle Boag, Regional Head of Global Payments Solutions, MENAT, HSBC.