Solution 4: From unfeasible or unrealistic to feasible and realistic requirements

Module III showed how sustainability requirements may fail if they are not feasible or are disconnected from operational and commercial realities. Sustainability requirements should be realistic, feasible, and aligned with operational and commercial realities so that they can support implementation.

Rather than imposing one-sided or unrealistic expectations, sustainability commitments should reflect actual risks, leverage, resources, roles, and capabilities across the supply chain. Sustainability expectations, contractual wording, and purchasing practices should support – rather than undermine – each other.

Buyers cannot realistically expect positive sustainability outcomes if they set prices, lead times, or payment terms in ways that push suppliers towards unsustainable shortcuts, or if they continuously increase compliance and reporting burdens while demanding lower costs and faster delivery.

Both parties should have clearly identified roles in supporting sustainability outcomes. This includes not only supplier obligations, but also the buyer’s role in enabling implementation through

• realistic pricing and timelines,
• information sharing,
• training, guidance, and capacity-building support,
• realistic planning and review processes,
• workable allocation of responsibilities and risks

Contracts should not rely solely on sanctions, termination rights, or other remedies. They should also include mechanisms that encourage implementation, collaboration, and continuous improvement, such as:

• milestones and review cycles,
• collaborative monitoring and problem-solving,
• sustainability action plans,
• incentives and support mechanisms,
• processes for corrective action and learning

Dispute prevention mechanisms, such as stepwise escalation, collaborative problem-solving, and feedback and learning loops, can help identify root causes, support corrective action, and reduce repeated harm.

Together, these measures help transform sustainability requirements from “words on paper” into feasible and realistic practices that support implementation.

Feasible and realistic requirements support implementation.

When it comes to sustainability, contracts should reflect:

• feasibility: realistic timelines, resources, evidence, and expectations
• realism: alignment with operational and commercial realities
• proportionality: risk-, leverage-, and context-based requirements
• shared responsibility: both parties supporting implementation
• continuous improvement: monitoring, review, corrective action, and learning.

Even feasible and realistic requirements may fail if responsibility for implementation remains unclear. The next section focuses on how sustainability commitments become owned, supported, and operationalised in practice.