How can you engage your supply chain in ESG communication?

It’s also crucial to organize best practice sharing sessions for your suppliers for them to understand what are the local, regional and global standards. There must be. Separate training and development budget allocated at corporate level to engage important suppliers in various training programs related to sustainable supply chain topics to help them understand and learn from these.

Engaging your supply chain in ESG communication involves transparent sharing of goals, collaboration in sustainable initiatives, and education on ESG practices. Set clear expectations, recognize supplier efforts, and maintain regular communication channels for an informed and collaborative approach. This ensures a positive impact throughout the supply chain.

With the CSRD you are obliged to do a materiality assessment (Doppelte Wesentlichkeitsanalyse). The current status of the “Draft Implementation Guidance on Materiality Assessment” is a valuable source of long-awaited insights, but there is room for more clarity. Current talks amongst the Sustainability reporting board (SRB) is hinting to more changes coming along.

The basis for engaging supply chain partners in your ESG communication consists of three pillars: clarity, transparency, and collaboration. To engage your supply chain, you need to have clarity about your company's ESG impacts and improvement goals. A double materiality assessment, involving your supply chain partners, will help you get there. In this process you will get more clarity about the ESG status of your supply chain and what you expect partners to do in order to achieve your ESG goals. Be transparent in sharing your ESG status and goals and collaborate closely with your supply chain in achieving your ESG goals. Coordinate with them in transparently communicating your progress to all stakeholders.

To effectively engage your supply chain in ESG communication, start by evaluating the environmental, social, and governance impacts of your operations. Utilize tools like life cycle assessments, materiality analysis, stakeholder mapping, and risk assessments to identify significant ESG impacts. This will enable you to pinpoint critical issues and key partners for focused engagement, ensuring a more targeted and meaningful approach.

Following the assessment of your supply chain's ESG impacts, it becomes crucial to communicate your ESG expectations and objectives to your supply chain partners. Utilize codes of conduct, contracts, policies, and standards to establish minimum requirements and expectations for ESG performance and compliance. Employ sustainability goals, targets, and indicators to align your supply chain with your broader ESG strategy and vision. It is imperative to communicate these expectations and objectives in a clear, consistent, and transparent manner, ensuring they are well understood and accepted by your supply chain partners.

After assessing your supply chain's ESG impacts, it's crucial to clearly communicate your ESG expectations and objectives to your partners. Utilize tools like codes of conduct, contracts, and policies to establish baseline ESG requirements. Additionally, set sustainability goals and indicators to align your supply chain with your broader ESG vision. Ensure that these expectations are conveyed transparently and consistently, fostering understanding and acceptance among your partners. This approach not only sets clear standards but also encourages a collective move towards sustainable practices.

There's an implicit challenge here: where in the organisation is the person / group doing this sitting. As a part of procurement or supply chain, we are likely to need board or ESG policy owner support, as the organisational ESG objectives are likely to be set here. As such, the starting point is likely to be to sort out the governance for how this is all going to be done, and then work out how to translate the business ESG ambitions into supply chain relatable concepts.

A Cadeia de Suprimentos representa uma parte importante no desempenho em ESG das empresas, isso porque a maior parte das emiss?es GEE, riscos reputacionais, legais entre outros se concentram nessa área. O primeiro passo é comunica??o, trazer os stakeholders para a mesa da sustentabilidade, pois para muitos isso ainda é desconhecido, depois a cria??o de uma ferramenta clara e objetiva que colete informa??es quantitativas e qualitativas de forma recorrente e se possível organizada por setor de atua??o é essencial para um diagnóstico. Existem parceiros que já fornecem esse servi?o como o Ecovadis e Empresa B, especializados em avalia??o de impacto socioambiental e em cadeias de suprimentos que s?o fortes aliados nessa jornada.

Outro ponto de vista é enfatizar a necessidade de uma abordagem colaborativa e de parceria na implementa??o de práticas ESG na cadeia de suprimentos. Em vez de apenas monitorar e medir o desempenho ESG, envolver as partes é essencial na defini??o de metas e no desenvolvimento de estratégias para melhorar o desempenho ambiental, social e de governan?a. Criar um espa?o de diálogo e colabora??o, onde todos possam compartilhar seus próprios conhecimentos e experiências, pode resultar em solu??es mais inovadoras e eficazes para abordar desafios. Incentivar a troca de informa??es e melhores práticas entre os membros da cadeia de suprimentos pode levar a um progresso mais significativo e sustentável em termos de implementa??o de práticas ESG.

Engaging your supply chain in ESG communication requires regular monitoring and measurement of their ESG performance. Utilize tools like audits, surveys, self-assessments, and certifications to gather and verify ESG data. Establish a systematic process for this evaluation, using reliable metrics and indicators to track progress. This not only ensures accountability but also helps in identifying areas for improvement, fostering a culture of continuous ESG advancement within your supply chain.

A regular challenge for many organisations is measuring any form of supply chain performance at all in a way that is meaningful and useful. As such, there may be a staged process here. Start with the areas that you're able to measure, and work into more challenging areas over time. And don't try to measure everything - you'll drown in unactionable data. Commercial aircraft have simplified dashboards to make it easier to focus on the right things. A well designed ESG dashboard will illuminate the actions which need taking, while preventing the anxiety caused by too much bad data.

Beyond just monitoring ESG performance, it's vital to give your supply chain partners both feedback and recognition. Acknowledge their ESG achievements and challenges, using tools like ratings, awards, and incentives to reward improvements. Constructive feedback is key to addressing gaps; offer guidance, training, and resources to support them. This approach not only motivates but also fosters a collaborative environment for continuous ESG growth, strengthening your relationships and collective impact.

Bringing stakeholders along with you on your journey can work well for less 'sexy' brands. For example, creating supplier advisory boards or roundtable communications that encourage trusted two-way feedback between the brand and individuals from various positions along the supply chain.

There's a further part of feedback which may be needed - looking at how you can work with key suppliers to improve ESG performance where the measures indicate that intervention is needed. It's far better to look for solutions and a way forward than it is just to have a measurement.

Communicating your supply chain's ESG achievements and challenges to stakeholders is key. Use diverse channels like reports, social media, and events to highlight your ESG performance and share your partners' stories. Honesty, authenticity, and transparency in these communications are crucial. Showcasing both successes and areas for improvement demonstrates your commitment to your ESG strategy and vision, enhancing trust and engagement with stakeholders. This approach not only informs but also inspires collective progress towards sustainable practices.

Engage your supply chain in ESG communication by transforming data into compelling narratives. Forget dry reports, paint a picture! Showcase concrete examples of their positive environmental, social, and governance practices. Highlight collaboration, celebrate milestones, and share challenges transparently. Spark curiosity, inspire others, and build trust – because powerful stories fuel genuine engagement, not just numbers.

In my experience, to effectively communicate supply chain's ESG achievements, it has to be through transparent sustainability or ESG reports, emphasizing reduced environmental impact, ethical sourcing, social responsibility and demonstration of feed governance practices. Also addressing challenges candidly, by showcasing ongoing improvement initiatives to convey commitment to sustainability.

It should definitely be a two way street. We have supply chains because we need the products and services they supply, and we should use suppliers who add value through their knowledge and expertise in their own field. They may have insights and skills which are useful to us in developing our own ESG deliverables.

Identifiziere die relevanten Stakeholder: überlege, welche Gruppen oder Personen von deinem Feedback betroffen sein k?nnten. Das k?nnen zum Beispiel Investoren, Kunden, Mitarbeiter oder die Gemeinschaft sein. Definiere deine Ziele: überlege dir, was du mit deinem Feedback erreichen m?chtest. M?chtest du beispielsweise auf bestimmte Umwelt- oder soziale Aspekte hinweisen oder Verbesserungsvorschl?ge machen? W?hle die passende Kommunikationsmethode: Entscheide, wie du dein Feedback am besten kommunizieren m?chtest. Das kann beispielsweise über schriftliche Stellungnahmen, pers?nliche Treffen, Online-Umfragen oder ?ffentliche Diskussionen erfolgen.

é fundamental voltarmos a um passo que pode construir ou destruir qualquer processo, a comunica??o. Ela é vital para o sucesso de qualquer programa, portanto comunicar bem e de forma eficaz com seus parceiros é o caminho para ter uma cadeia de suprimentos aderente aos seus princípios ESG que está implantando. Moldar um formato adequado a maioria deles e propor que fa?am parte deste modelo de comunica??o ajuda no engajamento e na reten??o deles as causas.

Engage the supply chain in ESG by developing a strategy that is consistent with global standards such as GRI, SASB, & IFRS, as well as the TCFD guideline. Choose new suppliers & evaluate current ones using ESG criteria, building a culture of informed collaboration. Provide instructional materials, impart training, build competence, promote innovation, & ensure open, two-way communication. Use technology to monitor & recognise suppliers that succeed in ESG practices. This method has the potential to quickly transform the supply chain into a harmonious force for sustainable growth.

3 tips for amplifying impact from my experience: - Transparency first: Ditch silos & share ESG goals openly! 78% of B2B buyers prefer suppliers with transparent sustainability practices. (McKinsey 2023) - Collaboration, not dictation: Work with suppliers, not just at them! Co-create solutions & share best practices. 63% of suppliers see supplier engagement as crucial for ESG progress. (CDP 2023) - Incentivize, don't penalize: Reward suppliers meeting ESG targets & offer support for improvements. 82% of suppliers say financial incentives drive ESG adoption. (EY 2023) By embracing these tips, you can transform your supply chain from a whisper to a powerful chorus of ESG action! #sustainability #esg #supplychainmanagement #collaboration

It’s also important to regularly share best practices with your suppliers and encourage them to share these with their own vendors and contractors as well. There has to be continuous process of training and development of suppliers s well and a separate budget must be allocated for the same.

An additional point to consider encouraging the supply chain to obtain recognized ESG certifications - this is achieved by collaborating with them in promoting ESG initiatives, training and creating awareness on sustainability and your organization's ESG initiatives as well as demonstrating a commitment to continuous enhancement of ESG practices by involving them in open communication channels and obtaining feedback on areas of improvement. As a bonus, use real examples as case studies that highlight positive ESG contributions from supply chain partners to illustrate the tangible impact of collaboration.

Provide support through ESG training to your supply chain where possible. A knowledge gap could be a challenge within the supply chain. ESG education can bridge this gap and enable your supply chain to improve sustainability and performance.