Technology Category
- Sensors - Temperature Sensors
Applicable Industries
- Aerospace
- Education
Applicable Functions
- Logistics & Transportation
- Procurement
Use Cases
- Continuous Emission Monitoring Systems
- Supply Chain Visibility
About The Customer
VMware is a leading provider of multi-cloud services for all apps, enabling digital innovation with enterprise control. The company is committed to building a sustainable, equitable, and more secure future for all. VMware has set science-based targets for climate action, including a goal to engage suppliers so that 75% of its 3rd party spend will be with suppliers who have set their own science-based targets by 2025. The company recognizes the importance of reducing emissions in its purchased goods and services and sees this as the basis of its ROI calculation. VMware understands that acting on sustainability is not only crucial for the planet but also for preparing the company's business for the future.
The Challenge
Matthew Eaton, the Senior Manager for Responsible Sourcing at VMware, faced a significant challenge in integrating Environment, Social, and Governance (ESG) principles into the company's supply chain. Prior to his transition into this role, VMware lacked programs that prioritized suppliers with diversity, accessibility, or climate initiatives. The ESG team was attempting to get suppliers to disclose their emissions through the CDP Supply Chain, but the response rate was disappointingly low. Eaton recognized the need for a more centralized approach to supplier-facing ESG requests and a stronger commitment to sustainability, equity, and trust within the company's sourcing practices.
The Solution
Eaton launched the Responsible Sourcing program at VMware, which centralized all supplier-facing ESG requests. This new approach leveraged the existing relationships between the sourcing team and suppliers, leading to an improved response rate. Eaton emphasized the importance of aligning with VMware's corporate values and public commitments to climate action in discussions with suppliers. He also stressed the need for suppliers to understand the business value of sustainability and the increasing global regulation in this area. Eaton's approach was not to be an expert in sustainability, but rather to be confident about what he expected from suppliers and to lead with education and incentives rather than penalties. He also highlighted the direct return on investment (ROI) from reducing emissions, particularly for a large company like VMware, where about 90% of emissions come from the supply chain.
Operational Impact
Quantitative Benefit
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