New survey shows more companies prioritizing ESG efforts
Orem — Avetta®, the leading provider of supply chain risk management software, unveiled a new executive survey which highlights how more companies are looking to improve their Environmental, Social and Governance (ESG) goals. The survey finds 79 percent of companies consider employee health and safety very important and 63 percent say reducing environmental footprint is very important.
The findings are included in Avetta’s technical paper, Extending ESG Best Practices into the Supply Chain: A Review of Leading Organization Approaches. One out of four respondents plan to make ESG supply chain issues a part of their organization’s program. The surveyed companies represent a variety of industries such as facilities management, chemicals, construction, utilities, telecommunications, transport, manufacturing, and food and beverages.
The pandemic has actually increased the importance of supply chains for many corporations because 90 percent of their environmental footprint has been pushed into their supply chain. The paper offers examples of companies that experienced ESG risks, as well as best practices for adopting ESG into every aspect of a business, including:
- Setting clear supply chain goals in reports, contracts, and governance structures
- Assessing, managing, and monitoring ESG supply chain risks
- Enhancing traceability, transparency, and engagement with suppliers
“Avetta is excited to help our clients grow their supply chains to be greener, more diverse, and more inclusive,” says Arshad Matin, Avetta president and CEO. “Our data shows that over a 10-year period, suppliers in our network experience a 7 percent to 12 percent year-over-year decrease in safety incidents. We look forward to continuing this successful trend in the ESG market.”
Matin led Avetta to join more than 9,500 companies in 145 countries that signed the United Nations Global Compact in 2020, committing to ethical business practices, transparency and protecting human rights.
The survey also finds 87 percent say ESG in the supply chain is important—of which, 39 percent marked it as very important. “While companies recognize the importance of achieving sustainable outcomes, they are less likely to recognize that most of that impact is in their supply chain. This reinstates that supply chain sustainability should be integrated into the company’s broader ESG architecture and not be isolated with the sole oversight of supply chain or procurement functions,” concludes the paper.
The responses highlight the need for companies to have systems in place to obtain and maintain ESG integration goals. For example, Avetta Connect™ helps companies worldwide deploy new ESG methodologies across their entire supply chain – increasing ESG visibility and delivering new ESG and sustainability reporting. The Avetta Marketplace provides suppliers and contractors deep discounts on safety and sustainability-related products and services.
Matin and Danny Shields, Senior VP of Industry Relations at Avetta, along with David Parham, Director of Research – Projects at Sustainability Accounting Standards Board (SASB), will discuss why ESG supply chain management should be an integral part of an organization’s ESG program during a webinar on June 29 at noon Central Daylight Time. The webinar will cover how ESG issues impact supply chains, what data should be reported to corporate boards, and what approaches and tools are being used to create meaningful ESG changes in supply chains. To register, click here.
Avetta offers a configurable SaaS-based solution that assists organizations – both large and small – in managing supply chain risk across a variety of disciplines. Avetta is building the world’s most intelligent supply chain risk management network to advance clients’ safety, resilience and sustainability programs. Avetta leads the world in connecting leading global organizations across industries, including telecom, construction materials, manufacturing, facilities management, high tech, and energy with qualified and vetted suppliers and contractors. The company brings unmatched access and visibility to its clients’ supply chain risk management process through its innovative and configurable technology coupled with highly experienced human knowledge and insight. We contribute to the advancement of our clients’ sustainable growth by protecting supply chains from a wide range of potential risks through trusted contractor prequalification, safety training, and monitoring, regulatory compliance, insurance/financial stability, and other areas of risk. Avetta serves more than 450 enterprise companies and 100,000 suppliers across 100+ countries. Visit https://www.avetta.com/ for more information.