ESG Considerations for Supply Chain Management

BDO in the Boardroom

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1+ y ago 19:17

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Key Takeaways:  

Suppliers have become an integral part of a company’s ESG performance against targets and laws, and therefore have an outsized impact on operational and financial performance

Boards should set clear expectations for including supply chain risk within Enterprise Risk Management and require detailed management action plans to address and mitigate risks as well as identify opportunities. Good questions to ask include:

Has the company mapped their supply chain and knows their 3rd party vendors beyond Tier 1, globally?
Have we evidenced processes and policies for supplier onboarding and data management?
Is our existing technology adequate to collect and maintain large amounts of supplier data and documentation?
How can our supplier management program of 3rd party vendors be verified to mitigate supply chain disruption due to ESG compliance issues?
Is the board engaging with the right cross-functional operational leaders responsible for supply chain management?
Is management monitoring industry trends and regulations and embedding those in supply chain planning, optimization, and monitoring?

Resources:    

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