Strategic Focus: Mitigating ESG And Sustainability Risk In The Supply Chain

Priyanka Bawa

Priyanka Bawa

Kim Knickle

Kim Knickle

16 Jul, 2025

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Executive Summary

As ESG and sustainability risks ripple through global supply chains – disrupting operations, damaging reputations and escalating costs – managing them is no longer optional, but central to corporate strategy. With these risks growing in complexity as well as financial materiality, firms face mounting pressure to re-engineer supply chains to be transparent, resilient and accountable. This report underscores the urgent need for environmental and social risk mitigation in supply chains and equips executives with actionable guidance to deliver it.

Rising ESG and sustainability risk in supply chains come as no surprise
Environmental and social risks in the supply chain pose a strategic business challenge for firms
Mitigating supply chain sustainability risks requires firms to make a concerted effort

Figure 1. ESG and sustainability risks in the supply chain
Figure 2.
Environmental and social risk incidents in supply chains: 2024-2025
Figure 3.
Regulations targeting ESG and sustainability risk in the supply chain
Figure 4.
A selection of case studies of firms mitigating ESG and sustainability risk in the supply chain
Figure 5.
Categories of software for mitigating ESG and sustainability risk in the supply chain
Figure 6.
Categories of services for mitigating ESG and sustainability risk in the supply chain

About the Authors

Priyanka Bawa

Priyanka Bawa

Principal Analyst

Priyanka is a Principal Analyst at Verdantix, where she leads research to enable sustainability leaders and services firms to analyse shifting market dynamics and evaluate inn...

Kim Knickle

Kim Knickle

Research Director

Kim Knickle is a Research Director at Verdantix, bringing more than two decades of analyst experience to the evolving world of sustainability. Her current research spans ESG a...

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