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.
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
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

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

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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