Supplier.io releases a new Supplier ESG Risk Report. This comprehensive report analyzes the environmental, social and governance (ESG) threat landscape for over 200 leading companies. The findings show that most businesses face significant ESG risks, emphasizing the need for greater supply chain transparency to enhance resilience and sustainability.
“Supplier intelligence is critical as increasing evidence shows that ESG risks directly impact the bottom line. Without clear visibility into supplier practices, businesses are exposed to significant reputational, operational, and financial threats,” says Aylin Basom, CEO of Supplier.io. “Our report highlights the tangible risks of environmental issues, poor working conditions, and inadequate supply chain management. By shining a light on these pervasive issues, Supplier.io provides critical insights and empowers organizations to understand and benchmark areas of supply chain risk, strengthen mitigation strategies, and make progress towards improved supply chain resilience.”
Key Takeaways:
- Environmental Risk: Environmental risks are a pressing concern, with Greenhouse Gas (GHG) emissions standing out as the most significant threat, affecting 73% of companies. Additionally, 72% of companies face risks from lack of managing their products’ environmental and social impacts throughout the product lifecycle. Water withdrawal and consumption and air pollution pose substantial challenges, underscoring a broad spectrum of environmental vulnerabilities.
- Social Risk: 54% of companies encounter worker health and safety risks, which can lead to labor unrest, strikes, production delays or disruptions.
- Governance Risk: Supply chain reporting mandates like the Corporate Sustainability Reporting Directive (CSRD) mean that businesses must ramp up their supply chain oversight and report on ESG impact. Yet, 45% of companies are exposed to significant risks due to inadequate supply chain transparency and management.
