Importance of Supply Chain Sustainability Rating

Importance of Supply Chain Sustainability Rating

Companies of all sizes have been making efforts to improve their sustainability performance in recent years. Many businesses are participating in sustainability ratings and there has been some progress in reducing environmental impacts in supply chains. However, it is important to note that there is still much work to be done in order to fully address the pressing environmental and social issues facing our planet today.

Companies are making more efforts to incorporate sustainability goals into their business plans and that some industries, such as finance, legal, and consulting firms, may have performed better in sustainability ratings. Also, many companies have started recognizing the investment potential of sustainability initiatives. However, it is important to note that sustainability performance can vary greatly depending on the industry and the specific measures used to evaluate it.

Generally speaking, some industries, such as food and beverage, light manufacturing, and heavy manufacturing, may have performed better in environment category due to their focus on reducing greenhouse gas emissions, preserving biodiversity and managing water use. Additionally, the improvement in the environment category depends on the baseline and the specific measures used to evaluate it.

Sustainable procurement scores were also up 1.2 points from 2020, after historically declining, the report finds. Sustainable procurement in the rating system is based on environmental and social results from suppliers.

Companies are making efforts to improve sustainability in their supply chains, and many companies are using various technologies and management systems, such as artificial intelligence, to achieve this. Small- and medium-sized companies are increasingly recognizing the importance of sustainability and are making efforts to improve their performance in this area. It is also true that Small- and medium-sized companies make up a significant portion of the world's supply chains and that these companies may have outperformed large companies in terms of sustainability performance over a period of five years. However, it is important to note that the specific progress made by these companies can vary greatly depending on their industry and the specific measures used to evaluate their sustainability performance. Additionally, the progress of large companies was within a two-point range of smaller businesses.

It is also true that European companies registered advanced performance levels, but it is important to note that growth in sustainability ratings can vary greatly by region and it is unclear which data sources and rating systems were used to make this conclusion. North American companies saw a 42% growth in assessments from 2020 to 2021, and Asia-Pacific had the second highest growth in sustainability ratings overall.