Best Practices: Improving ESG Performance In The Supply Chain

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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.

Table of contents

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

Table of figures

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

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 around supply chain sustainability. Her background is in Economics, Leadership and Governance (BSc, University of Navarra). Prior to joining Verdantix, Elisa worked as a research analyst at the Centre For Economic Performance at the London School of Economics, where she completed a Master’s degree in Global Politics, with Distinction.

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 sustainability, circular economy, social impact, and sustainable finance. Kim has worked for more than 20 years in the IT industry, providing research and analysis to help companies invest wisely in new technologies. Before joining the analyst industry, she held various roles in IT services, engineering and product safety testing, beginning her career at Underwriters Laboratories, Inc. Kim holds an MBA from Boston University and a BS in Electrical Engineering from Cornell.

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