With more than half of the world’s GDP dependent on nature for its resources and services, companies and their supply chains, have an outsized impact on the environment. The stark reality is that corporations continue to increase emissions of toxic greenhouse gases year after year because of their reliance on fossil fuels as a dominant source of energy.
Environmental and social governance (ESG)
With 80% of an organization’s sustainability impact intertwined in its supply chain, businesses will need to identify where they can work with suppliers to realize their corporate purpose ambitions. On average, over 90% of an organization’s carbon footprint sits in “scope 3,” mainly in its supply chain and product lifecycle. Defer that logic across the wider scope of business initiatives, and you uncover a better understanding of where most sustainability lies.
Environmental, Social and Governance (ESG) factors are becoming increasingly important in supply chains. Consumers are demanding more transparency and better practices than ever before. Meanwhile, millennials are putting their money where their mouths are and increasingly investing in companies that align with their environmental and societal values.
For businesses across the globe, sustainability used to be a “nice to have,” but now the view has shifted. It’s a “must have — or else.”