07 February 2022

abandoned steel mill

The supply chain presents the greatest potential for creating leaps in sustainability performance. According to a report by McKinsey, over eighty to ninety percent of greenhouse gas emissions and other environmental impacts are derived from consumer companies’ supply chains.

Existing and upcoming regulatory requirements mean senior business leaders have to rethink their approach to procurement and supply chain management. These rules add a new layer to value chain risk and compliance, requiring companies to integrate sustainability into their strategy and practices.

The greatest obstacle to executing on ESG? The sustainability knowledge gap. A recent survey by Avetta found that a “lack of in-house understanding of the importance of ESG issues within the supply chain” was the greatest challenge to incorporating ESG practices into the supply chain, followed by a “lack of suppliers’ understanding of ESG issues.”

Becoming proficient in ESG can unlock efficiency, financial and reputational gains for the company. Additionally, ESG leaders can pass along their knowledge to suppliers to help them improve upon their own practices, reducing the company’s Scope 3 emissions and improving its social impact throughout the value chain.

With ESG education, procurement and supply chain professionals can more accurately identify and measure the most material sustainability issues for the company. ESG knowledge is also a powerful tool for mitigating disruption, financial and legal risks in procurement practices and developing a more resilient supply chain.

The value of ESG education cannot be understated. Professionals with these tools and skills will outperform their peers and capture greater value in the supply chain.

ESG-educated leaders are what businesses and the world need to lead in the transition to a sustainable society.

Learn how to add value in your supply chain with ESG: https://scertify.co/cbeducation/

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