Supply Chain and ESG: Implementing an Extended Assessment
Integrating ESG considerations into supply chain management is not just a moral imperative but a strategic necessity. Let’s delve into the importance of this assessment.
Corporate sustainability refers to a management model that differs from the "traditional" as it is driven not only from the economic dimension but puts sustainability at the forefront. Corporate sustainability seeks to produce long-term stakeholder value by implementing a company plan that emphasizes the ethical, social, environmental, cultural, and economic aspects of conducting business.
Integrating ESG considerations into supply chain management is not just a moral imperative but a strategic necessity. Let’s delve into the importance of this assessment.
The banking sector has a transformative role to play as a catalyst and enabler of a systemic acceleration towards a more sustainable economy, with the challenging mission of rapidly inducing change in consumer, lender and investor behaviour, and perhaps more importantly, in the broader society as a whole. The Horizon 2020 Energy Efficient Mortgages Initiative (EEMI) Bauhaus model is intended to support this process and build a new methodological approach to propose a strategic harmonic roadmap to accelerate the green and social transition.
In today's rapidly evolving business landscape, environmental, social, and governance (ESG) factors have become increasingly more important for companies to consider. Beyond their ethical and moral implications, ESG risks can also have a significant impact on a company's financial performance and reputation. As such, it is critical for businesses to build effective risk management frameworks that address these factors.
Sustainability has become an essential aspect of modern businesses. As companies aim to reduce their carbon footprint and promote social responsibility, they must take a holistic approach to their operations. In this context, supply chain sustainability of businesses plays a major role in generating positive effects worldwide. While the traditional perspective on international trade suggests that countries simply export finished goods and services to foreign consumers, this only accounts for approximately 30% of global trade today.
A sustainable supply chain requires an integrated approach that involves all aspects of the supply chain, from sourcing to delivery. Every large company’s sustainability effort is tied to their ability to partner and support improvements in small and medium-sized enterprises (SMEs) along the entirety of their supply chain. On their side, SMEs can take the lead and embrace specific initiatives to promote sustainability in their supply chain, seizing a unique opportunity to stand out along the value chain.
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