• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Confronting the ESG Imperative in Supply Chains

Confronting the ESG Imperative in Supply Chains

ESG Guide
May 17, 2022
Robert J. Bowman, SupplyChainBrain

E.S.G.: Three letters that have enormous implications for global businesses and supply chains, now and in the coming years.

They stand for Environmental, Social and Governance, and each of those words evokes an extensive list of responsibilities, activities and business processes that reach deep into every conceivable part of the organization.

There’s nothing new, of course, about environmental awareness, concern for workers’ welfare or the need to govern a business along strict ethical and compliant guidelines. What’s different today is that companies no longer have a choice but to act in that manner: they need to go beyond uncoordinated efforts and (in some cases) virtue signaling to comply with the growing number of laws and regulations being put into place around the world. Governments and, increasingly, consumers, wouldn’t have it any other way.

Corporate sleepwalkers were awakened earlier this year by a sonic boom emanating from the European Union. The EU issued a draft directive requiring that companies exercise “due diligence” in adhering to international rules on child labor, workers’ rights and environmental protection. The action potentially affects some 4,000 international companies doing business within the 27-nation bloc, with revenues of more than €170 million and at least 500 employees. It also impacts businesses in such “high-impact” industries as apparel and mining.

The trend is global in scope. In the U.S., the new Uyghur Forced Labor Protection Law shoulders importers with the burden of proof for demonstrating that goods sourced from the Xinjiang region of China weren’t produced with forced labor. And the U.S. Securities and Exchange Commission has come out with a proposed rule to mandate corporate disclosure of greenhouse gas emissions — not just stemming directly from the companies in question (Scope 1), but also those classified as Scope 2 (purchased power) and Scope 3 (independent suppliers). Similar government action is brewing in the U.K., Switzerland, New Zealand and a host of other countries. There’s simply no getting past the looming mandate to monitor every aspect of one’s supply chain, and take appropriate action to conform to ESG requirements. 

To date, progress by companies to embrace ESG-related practices hasn’t been especially encouraging. A report by the UN Intergovernmental Panel on Climate Change warns that, barring immediate action toward mitigating the impact of climate change, global warming will exceed more than twice the target of 1.5°C set by the 2015 Paris Agreement. Yet according to a recent study commissioned by the Harris Poll and released by Google Cloud, only about 10% of surveyed U.S. supply chain and logistics executives say they are successfully measuring their sustainability efforts through programs already in place (the global average is scarcely better, at 19%). And there’s plenty of work yet to be done on the social responsibility side as well, to eliminate forced and child labor, and ensure fair treatment of workers the world round.

All good reasons why SupplyChainBrain is presenting its first issue devoted entirely to ESG-related topics. We cover the subject daily, of course, in our online articles, videos, webinars and podcasts. But we’re especially proud to present here the views of multiple industry experts, those engaged directly in the effort to forge ethical supply chains, and in a position to offer practical advice on how others can follow their example. So read on, and remember: When it comes to embracing the principles of ESG, the notion of “nice to have” is fast becoming obsolete.

Read SupplyChainBrain's 2022 Supply Chain ESG Guide here.

RELATED CONTENT

RELATED VIDEOS

  • Related Articles

    Podcast | The ABCs of ESG: Are Supply Chains Making Progress?

    Podcast | Embracing the Challenge of ESG in the Supply Chain

    Watch: The Real Meaning of ESG in the Supply Chain

Robert J. Bowman, SupplyChainBrain

Latin America’s Prospects for Trade and Logistics Development

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A HAND TURNS A LARGE, LIGHTED DIAL WITH THE WORD RISK ON IT iStock-NicoElNino-1364371014.jpg

    Measuring KPIs and KRIs for Comprehensive Supplier Performance Management

    Technology
  • A COMPLEX SERIES OF ROADWAYS AND RAMPS, SEEN FROM HIGH ABOVE, IS PARTLY SHROUDED BY CLOUD

    Supply Chain Visibility Isn’t Just a Catchphrase; It’s an Imperative

    Logistics
  • A WOMAN IN HER LIVING ROOM GESTURES IN DISMAY ON THE PHONE OVER AN OPEN SHIPPING BOX

    Retailers – Quit Bellyaching and Differentiate Yourself on Returns

    Reverse Logistics
  • A Mid Adult Male Truck Driver Doing Exercises Before Road Trip by the side of a truck

    Podcast | Yoga for Truck Drivers? It’s a Mother Trucker!

    LTL/Truckload Services
  • A STORE WINDOW DISPLAYS AN ARRAY OF DESIGNER PURSES

    Can AI Turn the Tide Against Product Counterfeiters?

    Sourcing/Procurement/SRM

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Honeywell Intelligrated IFM
Infor Inmar Keelvar
Kinaxis Korber Lean Solutions Group 2H
Liberty SBF Locus Robotics Logility
LogistiVIEW Lucas Systems MCA Connect
MPO Nvidia Old Dominion
OpenText ORTEC Overhaul
Parsyl PMMI QIMA
Redwood Logistics Ryder E-commerce by Whiplash Saddle Creek Logistics
Schneider Dedicated Setlog Holding AG Ship4WD
Shipwell Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing