Daily Magazine

The supply chain crisis has prompted many businesses to focus urgently on sustainable sourcing. It’s a good idea, but they should go even further by integrating their overall environment, social and governance (ESG) strategies into their sourcing plans. 

Indeed, two-thirds of the average company’s ESG footprint lies with suppliers, according to McKinsey. The cost of failure — even at multiple levels down the supply chain — can be catastrophic to a firm’s reputation. Major incidents have brought widespread attention and spurred enterprises worldwide to double down on sustainable procurement.

At the same time, investor expectations, along with increased regulatory oversight requirements — such as the German Supply Chain Due Diligence Act and the UK Modern Slavery Act — are compelling businesses to establish and execute ESG strategies and uphold high ethical standards.

Via EcoVadis, Ricard Lloria

Increased global awareness and debate surrounding climate change and sustainability has propelled environmental, social and corporate governance (ESG) practices from a ‘nice to have’ to a necessity for today’s corporate treasurer, according to Karin Flinspach, head of transaction banking, Europe & Americas at Standard Chartered

Via EcoVadis, Ricard Lloria

Sustainability-driven investment is no longer considered a trade-off between generating economic value and positively impacting society. However, from an investor’s perspective, the current multiplicity of practices remains a substantial challenge, especially for those managing well-diversified, international portfolios.

Without a doubt, investor appetite for sustainable investment products is strong and growing. For example, the German Banking Association reported in 2021 that for 67% of surveyed investors, making socially and environmentally friendly investments is important.

Via EcoVadis, Ricard Lloria