ESG fundamentals for supply chain professionals

ESG fundamentals for supply chain professionals

✨Introduction                                                                           

Let ESG, you not only reduce risks across your operations but also prepare for unexpected events. It's time to apply some common-sense approaches, start with a single step, and build on its face it, following the law and treating employees fairly shouldn't be rocket science. But with ESG frameworks, it's easier to identify risks and opportunities, calculate potential benefits, and take actions accordingly. And no, it's not another buzzword - ESG is becoming part of best practice. 

What is ESG❓

ESG refers to Environmental, Social, and Governance factors that a business takes into consideration when operating. It includes obeying laws, treating employees fairly, not harming the environment, and preparing for unexpected events. ESG is a framework that helps businesses identify risks and opportunities, calculate potential benefits, and ensure awareness and management of multiple risks. It goes beyond basic principles, providing adaptability to identify new risks and viable opportunities. A formal ESG program is vital to reduce risk across all operations.

ESG Frameworks 

ESG frameworks are crucial to increasing awareness of opportunities and risks. They help businesses calculate potential benefits and manage myriad risks. Maturity in ESG practices is assessed through ESG diligence, which also provides confidence to upstream and downstream suppliers. ESG goes beyond basic principles and enables identification of viable opportunities amongst the risks. For example, an electric car hire may provide a premium or an asset valuation using sustainable materials brings longevity and lower TCO.

Benefits of an ESG Framework 

 An ESG framework offers benefits beyond ethical practice

 It helps identify potential areas of risk and explore new opportunities

 Sustainability becomes an ingrained part of business practices

 Embracing ESG principles helps businesses gain a comprehensive understanding of risks

 Sustainable practices can offset risks and reduce risk across all operations

 ESG principles help businesses handle the complexities of modern corporate responsibility

 ESG principles make businesses more valuable in terms of brand equity and overall financial health

Conclusion ✍

In conclusion, ESG is no longer an optional add-on, but a best practice for sustainable business. It helps to identify risks and opportunities related to obeying the law, treating employees fairly, not harming the environment, and preparing for potential problems. Implementing ESG can increase awareness of opportunities and risks, reduce risks across all operations, and ensure sustainability in business practices. Though the complexities of ESG issues might seem daunting, starting with common sense approaches and building from there can be a great first step towards a successful ESG program.