It has been said that ESG (Environmental, Social and Corporate Governance) issues used to be very much of an afterthought after cost and capability to buyers. This is absolutely changing as companies are looking to drive their own policies through the supply chain. Its no longer acceptable to outsource bad practices to your suppliers!
The process starts with the SCOPE analysis - are the suppliers the right level of cultural fit, do we have the correct stablemates etc etc. Companies are looking to see that the vision of ESG is aligned across buying and supplying companies. It works both ways of course as suppliers are (sometimes) choosing to no bid companies whom they consider do not match their own ESG standards or whose practices or reputation may damage their own reputation. Buyers will look for:
* Examples and case studies
* Ecovardis scores
* Examples of how they work with their staff and within their communities
These are just examples, this is a fast moving area and one which is fascinating.
It has been said that ESG (Environmental, Social and Corporate Governance) issues used to be very much of an afterthought after cost and capability to buyers. This is absolutely changing as companies are looking to drive their own policies through the supply chain. Its no longer acceptable to outsource bad practices to your suppliers!
The process starts with the SCOPE analysis - are the suppliers the right level of cultural fit, do we have the correct stablemates etc etc. Companies are looking to see that the vision of ESG is aligned across buying and supplying companies. It works both ways of course as suppliers are (sometimes) choosing to no bid companies whom they consider do not match their own ESG standards or whose practices or reputation may damage their own reputation. Buyers will look for:
* Examples and case studies
* Ecovardis scores
* Examples of how they work with their staff and within their communities
These are just examples, this is a fast moving area and one which is fascinating.