Supply chain
NO LONGER a law unto itself
Digitalisation and tougher regulations are working in tandem to make supply chain more ESG-compliant than ever before
WRITTEN BY : SEAN ASHCROFT
Global supply chains of old were notorious hotbeds of environmental , social and governance ( ESG ) transgressions . With thousands of vendors spread across countless countries , there was often very little visibility beyond the first tier of supply .
Deep down in the shadowy depths of tiers five , six and beyond , executives often had no idea what was happening – or not happening . But no longer .
Digital transformation , driven by Industry 4.0 technologies , is changing everything , as is the urgent need for organisations to walk the walk on ESG performance , not merely talk the talk . Businesses know now that if they fall short on ESG compliance then investors , stakeholders and – most damagingly of all – customers will want answers , and fast .
Transparency of the supply chain is driven by data and analytics , and ESG data has the potential to make or break potential contracts , to improve efficiency and to secure funding for new and existing operations . Sustainability is embedded in every project undertaken – or should be – and this also provides cost benefits , too .
78 September 2022