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ESG in supplier management is one of the focal points of investor interest. ESG stands for Environmental, Social, and (Corporate) Governance.
These three areas are key factors when measuring the sustainability and ethical impact of a company’s operations and these are evaluated by socially responsible investors to screen potential investments.
KPMG, a multinational professional services network, has reported that:
Consumers are increasingly choosing brands for their ethical behaviour and their record on climate change.
Investors are favouring businesses with robust ESG frameworks implemented.
Governments are implementing regulations requiring organisations to increase transparency in areas such as carbon emissions, modern slavery, diversity, and equal pay. The way a business handles ESG in supplier management will define them within many professional spheres.