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 chainExternal 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 chainFigure 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
Organisations mentioned
Amazon, Amnesty International, Apple, Aravo, Assent, Avetta, BBC, Benchmark Gensuite, Blue Yonder, CDP (Carbon Disclosure Project), Danone, Dell, Diginex, Dow Chemical, Ecometrica, European Center for Constitutional and Human Rights (ECCHR), Greenstone, HP, Iberdrola, IBM, IKEA, International Finance Corporation, James Finlay and Co, Levi Strauss, Mercedez-Benz, Microsoft, Mondelez International, Nestlé, Normative, Oracle, Organisation for Economic Co-operation and Development (OECD), QIMA, Responsible Business Alliance (RBA), Reuters, SAI360, SAP, Science Based Targets initiative (SBTi), SHEIN, Turnkey, Ulula, UN Global Compact, Unilever, US Securities and Exchange Commission (SEC), World Economic Forum (WEF), Worldfavor, Yok Impex, Zurich Insurance GroupAbout the authors
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