Transforming Global Supply Chains: Strategies for Sustainable Impact with Sandra Leyva

Summary

In this episode of our podcast, Jonas, co-founder of The Sustainability Circle, sits down with Sandra Leyva, Director of Supply Chain Sustainability at KION Group, to explore the challenges and opportunities in driving sustainability across global supply chains. Sandra shares her journey, insights, and practical strategies for embedding sustainability into supplier relationships and ensuring compliance with evolving regulations.

Topics covered include:

• Building internal and external buy-in through storytelling and risk alignment.

• Managing diverse supplier relationships across regions and maturity levels.

• Engaging suppliers through education, upskilling, and collaborative incentives.

• Streamlining data collection and compliance for global regulatory requirements.

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Timestamps:

01:48 Sandra's Sustainability Journey

03:54 Sandra's Role at KION05:42 Why Supply Chain Sustainability is so Complex

07:30 Creating Buy-in for Sustainability

10:43 Engaging Diverse Suppliers

13:43 Getting the Suppliers on Board

16:55 Internal Alignment, Prioritized Focus, and Effective Collaboration

20:01 Creating Data Transparency and Getting Started with Regulatory Disclosure Requirements

24:23 Supplier Mapping

27:52 Educating Suppliers

29:55 The Future of Sustainability in Supply Chains

33:09 Final Takeaways

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Get in touch with Sandra

LinkedIn

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Transcript

Sandra: They need to be clear, fair, and most importantly, enforceable. You should do things that set your suppliers up for success and not for failure!

Jonas: Hey there, and welcome to the TSC podcast, your go-to source for practical insights from top sustainability leaders around the world. I'm Jonas, co-founder of The Sustainability Circle, and I'll be your host for today's episode. Here, we share the stories of those at the forefront of driving sustainability in organizations globally.

Jonas: Every episode dives into real-world lessons, unique insights, and actionable advice to help you advance sustainability in your role. This podcast is brought to you by The Sustainability Circle, the platform where corporate sustainability leaders grow through community-powered learning and connections.

Jonas:  In today's episode, I'm speaking with Sandra Leyva, Director of Supply Chain Sustainability at the KION Group, a leading global provider of industrial trucks and supply chain solutions. Supply chain sustainability is often seen as one of the toughest challenges for sustainability leaders—balancing stakeholder dynamics, aligning business goals, and navigating complex data requirements across global operations.

Jonas: Sandra will share how she tackles these challenges, from securing organizational buy-in to engaging suppliers and addressing the ever-evolving demands of transparency and reporting. Sandra, welcome to the show. Great to have you.

Sandra: Thanks for having me! I'm super happy to be here.

Jonas: Amazing. I am as well. All right. To start, as we always do—can you tell us a little bit about your background, your journey into sustainability, and also how you ended up in your current role as Director of Supply Chain Sustainability?

Sandra: Yeah, of course. Thanks for the question. It’s actually quite an interesting journey because my background is in aeronautical engineering. My journey into sustainability started [00:02:00] with an internship in R&D. I worked with cross-functional teams for a company named Dematic, a provider of automated solutions. During that journey, the company was acquired by a German company, and we started sustainability initiatives as a North American company—from zero to one hundred—implementing governance mechanisms and strategies. Having that background of working with cross-functional teams, I became involved in all these sustainability workstreams.

Sandra: Moving forward, I started to lead the strategy. This brought a lot of visibility, as I began reporting to top management early in my career. As the topic evolved, I expanded the program for the organization—first with a central strategy, then with a product sustainability strategy. Later, I worked at Amazon within their worldwide sustainability organization as a product management lead for supply chain innovation solutions. If you've heard about the Sustainability Solutions Hub, I was one of the product management leaders supporting its development and launch.

Sandra: Eventually, KION, the parent company of Dematic, asked me if I wanted to work with them on supply chain sustainability, leading the program for their more than 40,000 suppliers and operationalizing all their sustainability requirements. So, yeah, that’s my story in a nutshell.

Jonas: That sounds super interesting. For those unfamiliar with the KION Group and supply chain sustainability, can you give us a one- or two-minute breakdown of your day-to-day?

Sandra: Yeah, of course. Before, we talked about implementing sustainability within our own companies—working on Scope 1 and Scope 2 strategies. But as requirements evolved, we needed to take shared responsibility beyond our four walls. What a supply chain sustainability professional does is extend these efforts to our most important external business partners—our suppliers.

Sandra: This means ensuring we go from compliance to innovation programs, upskilling suppliers to ensure they’re enabled, and equipping internal teams with education, governance mechanisms, and sustainability criteria in terms and conditions or awarding decisions. So, yeah, there’s a lot to unpack in supply chain sustainability, and I’m really excited to discuss it with you.

Jonas: Yeah, as you said, there’s a lot to unpack. When I speak to sustainability leaders in the TSC community, supply chain sustainability often feels like an ultimate puzzle—something many are tackling but haven’t quite cracked yet. Whether it’s managing stakeholder dynamics, addressing data challenges, or aligning business priorities, it can feel overwhelming. I’m really glad we’re having this conversation today to explore practical strategies. To start us off, why is supply chain sustainability so complex—and so critical?

Sandra: Well, first of all, supply chains are inherently complex. You’re dealing with stakeholders outside your direct control. If it’s already challenging to implement sustainability within your own organization, imagine doing it with external stakeholders, where you share ownership of metrics beyond sustainability—like cost, delivery, and volume. Then add sustainability, which is often an unfamiliar topic for many suppliers.

Sandra: Now, consider how supply chains are evolving—towards localization, for example. You start working with smaller suppliers who may not even have sustainability teams. How do you enable them while balancing other procurement priorities? That’s why supply chain sustainability is so important. It requires creativity because there’s no one-size-fits-all solution. Factors like company size, region, and maturity all play a role. We’ll dive deeper into this as we go along.

Jonas: Yeah, for sure. You even touched upon it. I think the whole topic of creating buy-in, both externally and internally, is crucial in any transformational or collaborative process. It’s definitely worth focusing a bit on this topic. How do you go about securing buy-in from leadership and suppliers? Can you walk us through this challenge?

Sandra: Yeah, of course. I’ll guide you through the journey because sustainability is often misunderstood as a philanthropic topic when it’s actually an operational risk. Many companies are starting to understand this. We need to transform the perception of sustainability from a “nice-to-have” into a strategic, profit-driven competency.

Sandra: It starts with bringing supply chain disruptions, hefty fines, and reputational damage into the conversation. These are familiar business threats, and the ones associated with sustainability are only going to increase. We’re talking about PFAS, CBAM, and the EU Deforestation Law.

Sandra: The first step is to map these siloed risks and understand their potential impact on the bottom line. That way, we can create a long-term vision and strategy that aligns with broader company goals. But—and this is a big “but”—a vision is just a North Star. Many teams fail to implement sustainability programs successfully because they focus only on long-term aspirations without addressing short-term wins.

Sandra: A technique I use to show how sustainability drives competitiveness and mitigates risks is to share tangible examples. For instance, we sent a newsletter about the Volkswagen import restriction incident earlier this year. U.S. Customs impounded thousands of vehicles due to a subcomponent that potentially violated anti-forced labor regulations. It was estimated to cost the company around €100 million in logistics, replacement parts, and delayed deliveries.

Sandra: Why mention this? Because cost savings, risk mitigation, and supply chain resilience are arguments that resonate at all levels and across functions. Other strategies include training and recognition—upskilling partner teams to minimize resistance to the unknown. A defined strategy and narrative increase awareness and create shared ownership, which I believe is the key to embedding sustainability in company culture.

Jonas: Yeah, and I think having the internal side on board is one part of the equation. The other part is addressing the actual suppliers. There’s such a diverse range of them—different in size, maturity level, and the regulatory environments they operate in. This diversity brings different cultures, expectations, and data capabilities. How do you approach and manage this diversity in suppliers?

Sandra: Great question. Supplier maturity is key here. First, we need to understand where our suppliers are on their sustainability journey by conducting a thorough maturity assessment. A common mistake is jumping into implementation as a reaction to regulatory requirements without first evaluating the current practices and capabilities of our suppliers.

Sandra: For suppliers at the beginning stages, we act as sustainability coaches. We provide training and resources to build foundational knowledge and help them understand that sustainability isn’t just about doing good—it’s about doing better for the environment, their workers, and ultimately, their business.

Sandra: But education alone isn’t enough. That’s where incentives come in. And I’m not just talking about financial incentives, though bonuses or better terms can help. Other levers, like publicly recognizing achievements, offering access to free consultations, or creating supplier roundtables, can significantly influence engagement. Once that foundation is set, sustainability clauses need to be integrated into contracts and terms and conditions to ensure accountability.

Jonas: That’s super interesting. You mentioned sustainability clauses earlier—what makes these effective? How do you balance being clear and enforceable without alienating smaller or less mature suppliers?

Sandra: Clauses need to be clear, fair, and enforceable. The goal is to set suppliers up for success, not failure. For example, many companies want to start collecting data for product carbon footprints due to customer demands. But if you haven’t implemented basic supply chain due diligence for human and environmental rights violations, you’re skipping a critical step.

Sandra: Start with the basics—ensure suppliers meet long-standing environmental and product compliance standards like REACH or RoHS before advancing to more complex requirements like lifecycle assessments. A study by CDP showed that only 20% of suppliers report comprehensive carbon data. This gap shows why it’s essential to build trust and capacity before pushing for advanced metrics.

Sandra: Streamlining requests is another key factor. Don’t overwhelm suppliers with separate processes for every requirement. For instance, when I worked in product sustainability, I often received ten different data requests from the same customer, all through different channels. Streamlining communication and processes makes a huge difference.

Jonas: That makes a lot of sense. Internally, as someone working in the sustainability team—even if you have a cross-functional role—your incentives and goals might differ from those of, say, the procurement team. How does that collaboration work when prioritizing goals with suppliers?

Sandra: That’s a great point. Often, people in central sustainability teams need to collaborate across functions. One of the most underrated tools for building alignment is internal one-on-one communication.

Sandra: For example, I regularly meet with key stakeholders like supplier performance managers and global supplier development teams. I sit down with them to understand their processes and KPIs. Then, instead of creating a new process, I try to embed my sustainability criteria into existing workflows.

Sandra: You need to rely on these experts. If I were to go to them and say, “Hey, I want to start asking suppliers for lifecycle assessments or cradle-to-cradle certifications,” they’d look at me like, “What are you talking about? That’s not feasible.” By aligning with their expertise, you create targeted, enforceable programs and minimize risks. Without this alignment, you risk derailing conversations with top management or seeing your projects crumble.

Jonas: That’s a valuable insight—understanding and aligning goals is so crucial. Let’s transition to another big challenge I often hear about: data transparency. Collecting and managing supplier data can feel like an overwhelming task, especially with increasing regulatory demands like CSRD or CS3D. How do you tackle this challenge?

Sandra: It’s a huge challenge, and I won’t sugarcoat it—it’s incredibly complex. Step zero is ensuring that internal data systems are in order. Often, the first hurdle is just getting accurate contact information for suppliers. Beyond that, you need standardized processes for data collection and auditing.

Sandra: It’s essential to establish a governance framework and ensure that teams—such as procurement or supplier development—understand the “why” behind data collection efforts. Frameworks like the GHG Protocol or GRI are widely used, and leveraging technology and automation can greatly enhance accuracy and efficiency.

Sandra: For example, tools like EcoVadis or IntegrityNext can help map risks across suppliers. These tools assess suppliers based on country and industry risks and flag issues like forced labor or environmental violations. From there, you can target specific suppliers for deeper engagement or remediation efforts.

Sandra: Importantly, empowerment must come before disengagement. If a supplier is flagged for noncompliance, the goal should be to help them improve rather than immediately cutting ties. That’s how you create meaningful, long-term change.

Jonas: That’s a great point. It’s not just about meeting regulatory requirements but fostering improvement across the supply chain. Looking ahead, what trends do you see shaping the future of supply chain sustainability?

Sandra: Transparency is going to continue increasing, and technology will play a significant role in enabling traceability. Topics like circularity and biodiversity are also gaining traction. Biodiversity, in particular, is becoming a major focus, and we’ll likely see it as a key agenda item at COP30.

Sandra: Another trend is the shift from non-financial incentives to more robust investment strategies. Carbon pricing, for example, is going to have a significant impact on procurement strategies. Companies will need to embed sustainability even deeper into their value chains to remain competitive.

Jonas: Absolutely. It’s clear that the challenges aren’t going to get any smaller, but the opportunities for meaningful change are enormous. Sandra, thank you so much for joining us today. This conversation has been incredibly insightful.

Sandra: Thank you for having me! If anyone listening wants to connect, feel free to find me on LinkedIn. I’d be happy to exchange ideas or offer advice.

Jonas: Amazing. Thanks again, Sandra. And thanks to everyone for tuning in. See you in the next episode!

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