Why your supply chain is quietly killing your profits (and the planet)

All indirect emissions in your value chain, including:

• Sourcing and transport of goods (ingredients, cleaning supplies, uniforms).
• Waste disposal and logistics.
• Staff commutes.

• Represent over 70% of a business’s carbon footprint.
• Most overlooked area in hospitality sustainability strategies.
• Focus on energy-efficient equipment barely scratches the surface.

The regulatory landscape is shifting rapidly. UKHospitality warns that the UK’s upcoming Sustainability Reporting Standards (SRS), aligned with global frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and the EU’s Corporate Sustainability Reporting Directive (CSRD), will require businesses to disclose their environmental impact across multiple areas including carbon emissions, energy use, waste management, and water efficiency.

Key details

• The CSRD will apply to UK companies that meet specific criteria, such as generating significant revenue within the EU and a substantial presence there (e.g., through subsidiaries or branches).
• Initially targeting large, listed companies and major private enterprises.
• Scope could expand over time.

Critical insight from UKHospitality: “While small and medium-sized enterprises (SMEs) won’t be directly required to comply in the initial rollout, they may still be affected as larger hospitality operators and corporate clients demand sustainability data from their supply chains. Businesses that act now will not only stay ahead of future regulations but also cut costs and enhance their brand reputation.”

Impact: Early action provides regulatory headroom and competitive advantage while protecting brand reputation.

Loungers, one of the UK’s fastest-growing hospitality brands, demonstrates how procurement-led sustainability delivers measurable results. Facing the typical challenges of rapid multi-site expansion, complex procurement, supplier sprawl, and mounting waste, Loungers partnered with United UK to implement comprehensive procurement optimisation.

The results showcase the transformative potential of strategic supply chain management:

• Operational excellence: Achieved 100% fulfilment on new openings, ensuring smooth launches every time across their Lounge, Cosy Club, and Brightside brands.
• Supply chain efficiency: Consolidated to single weekly deliveries per site, dramatically reducing transport emissions and packaging waste.
• Sustainable sourcing: Transitioned from long-haul imports to UK and European suppliers, creating a more resilient and environmentally responsible supply chain.
• Scalable processes: Developed a robust procurement model that supports ambitious expansion without compromising sustainability standards.

As Amber Armstrong, Loungers’ Procurement Manager, explains: “At first, consolidating orders was about efficiency, but we quickly realised the sustainability benefits. Now, responsible sourcing is a much bigger priority, and United UK has been key in helping us make that shift.”

This transformation wasn’t achieved through complex technology or significant capital investment; it was delivered through strategic procurement decisions that simultaneously improved operational efficiency and environmental performance.