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


Elisa Molero is a research analyst specialised in ESG & Sustainability. Her background is in Economics (BSc University of Navarra). She holds a minor in leadership and governance. Prior to joining Verdantix she completed a Master’s degree in Global Politics with Distinction at the London School of Economics and Political Science. 

Kim Knickle

Research Director, ESG & Sustainability

Kim leads the Verdantix ESG & Sustainability practice, addressing business challenges and priorities in ESG and sustainability through technology and services. Her current research agenda focuses on ESG regulatory and market drivers, sustainability reporting, risk management, supply chain sustainability, circular economy, social impact.  Knickle 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.  Knickle holds a MBA from Boston University and a BS in electrical engineering from Cornell.

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