SUPPLY CHAIN
Sustainability starts with the right data Sustainable supply chains need aggregated data . This is Ground Zero . Supply chain ESG data needs to be accessible and meaningful , to allow for quick analysis and informed decision making . This is critical if businesses are to understand their supply chain and its global impacts .
“ As the frequency and severity of disruptions increase , the era of neglecting supply chains , trusting suppliers , and optimising for cost is probably over ,” says McKinsey Partner Knut Alicke , who has a leading role in digital supply chain and analytics for supply chain management .
“ We ’ re entering a new age of supply chain management , where sourcing capabilities are king and digital innovation is the bridge to resilience ,” Alicke explains .
“ Fashion is now following a wider global trend on sustainability and accountability ”
LAURA GIBSON HEAD OF SUSTAINABILITY , CORE
But it is not just data and technology that ’ s driving sea-change ESG improvements in the supply chain . A raft of legislation and regulations in the US and Europe is also having an impact .
One sector with an historically bad reputation for ESG performance is fashion retail . This is due to the sector ’ s rapid growth , its e-commerce capabilities , and its use of resources and raw materials that are tied in with changing consumption patterns , as well as the globalisation of trade .
Far-reaching social issues in the fashion supply chain and its ecosystem have been highlighted for decades , yet with little in the way of meaningful change . Tragedies such as the Rana Plaza factory collapse in 2013 - causing the deaths of more than 1,000 garment workers , predominantly women and children - have driven some positive change , but there remains a lack of industrywide governance and regulation . Yet , there are signs that this may now be changing .
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