Best Practices: Improving ESG Performance In The Supply Chain
09 Jun, 2023
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Executive Summary
Supply chain sustainability refers to a firm’s efforts to minimize adverse social and environmental impacts across a business and a supplier network. A rising regulatory burden, and higher stakeholder expectations, are increasingly pushing firms to commit to ESG-aligned performance in their supply chain. However, supply chain sustainability initiatives often face visibility, data and engagement challenges. This report will help corporates address ESG issues in the supply chain, to avoid exposure to reputational and regulatory risks and build sustainable business resilience.
Stakeholders and regulators push firms to address ESG in the supply chain
External pressure and growing regulatory burden drive supply chain sustainability
Limited data accessibility and opaque insights hinder ESG-related supply chain initiatives
Best practices to improve ESG performance in the supply chain
Acknowledge internal supply chain sustainability capabilities and potential
Improve the engagement and visibility of direct suppliers
Leverage digital technologies to access ESG insights in the supply chain
Adopt a collective approach to drive industry action on supply chain sustainability
External pressure and growing regulatory burden drive supply chain sustainability
Limited data accessibility and opaque insights hinder ESG-related supply chain initiatives
Best practices to improve ESG performance in the supply chain
Acknowledge internal supply chain sustainability capabilities and potential
Improve the engagement and visibility of direct suppliers
Leverage digital technologies to access ESG insights in the supply chain
Adopt a collective approach to drive industry action on supply chain sustainability
Figure 1. Drivers behind increased commitment to ESG and sustainability in the supply chain
Figure 2. Corporate public commitments to supply chain sustainability
Figure 3. Regulations targeting sustainability performance in the supply chain
Figure 4. Supply chain sustainability challenges
Figure 5. Best practices to improve ESG performance in the supply chain
Figure 2. Corporate public commitments to supply chain sustainability
Figure 3. Regulations targeting sustainability performance in the supply chain
Figure 4. Supply chain sustainability challenges
Figure 5. Best practices to improve ESG performance in the supply chain
HP, IKEA, Organisation for Economic Co-operation and Development (OECD), Worldfavor, Dell, Yok Impex, Assent, Amnesty International, Microsoft, Mercedez-Benz, UN Global Compact, Diginex, Normative, Aravo, Mondelez International, Ulula, Apple, SAI360, Oracle, Avetta, Reuters, European Center for Constitutional and Human Rights (ECCHR), CDP (Carbon Disclosure Project), Zurich Insurance Group, Iberdrola, Blue Yonder, SAP, BBC, QIMA, International Finance Corporation, Ecometrica, Responsible Business Alliance (RBA), James Finlay and Co, Levi Strauss, Nestlé, IBM, Danone, Amazon, Science Based Targets initiative (SBTi), World Economic Forum (WEF), Turnkey, Benchmark Gensuite, US Securities and Exchange Commission (SEC), Unilever, SHEIN, Greenstone, Dow Chemical
About the Authors

Elisa Molero
Industry Analyst
Elisa Molero is an Industry Analyst in the Verdantix ESG & Sustainability practice. Her current research agenda focuses on emerging solutions and global market trends arou…
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Kim Knickle
Research Director, ESG & Sustainability
Kimberly Knickle is Research Director of the ESG & Sustainability practice at Verdantix. Her research areas encompass ESG regulations and reporting, ESG risk, supply chain…
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