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The supply chain crisis has prompted many businesses to focus urgently on sustainable sourcing. It’s a good idea, but they should go even further by integrating their overall environment, social and governance (ESG) strategies into their sourcing plans.
Indeed, two-thirds of the average company’s ESG footprint lies with suppliers, according to McKinsey. The cost of failure — even at multiple levels down the supply chain — can be catastrophic to a firm’s reputation. Major incidents have brought widespread attention and spurred enterprises worldwide to double down on sustainable procurement.
At the same time, investor expectations, along with increased regulatory oversight requirements — such as the German Supply Chain Due Diligence Act and the UK Modern Slavery Act — are compelling businesses to establish and execute ESG strategies and uphold high ethical standards.
Via EcoVadis, Ricard Lloria
