Supply chain risk management software provider Avetta has published findings of a survey that shows how more companies are looking to improve their environmental, social and governance (ESG) goals.
The surveyed companies represent a variety of industries, and the findings are included in Avetta’s paper ‘Extending ESG Best Practices into the Supply Chain: A Review of Leading Organisation Approaches’.
Of those polled, 87% say ESG in the supply chain is important - 39% marking it as very important. 63% of companies polled believe reducing their environmental footprint is very important too.
“While companies recognise the importance of achieving sustainable outcomes, they are less likely to recognise that most of that impact is in their supply chain. This reinstates that supply chain sustainability should be integrated into the company’s broader ESG architecture and not be isolated with the sole oversight of supply chain or procurement functions,” concludes the paper.
It offers examples of companies that experienced ESG risks, as well as best practices for adopting ESG into every aspect of a business, including: setting clear supply chain goals in reports, contracts and governance structures; assessing, managing and monitoring ESG supply chain risks; enhancing traceability, transparency and engagement with suppliers.