ESGs - We All Have a Role to Play

The greatest threat to our planet is the believe that somebody else is going to do it.

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In the last few months, all our corporate clients have insisted that at SRM eProcurement go to test suppliers commitment to ESG (Environmental, Social and Governance) principles as we source for suppliers on their behalf.

Our challenge is many suppliers are failing in this area and I am left wondering if the requirements are too technical or it is an attitude issue.

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I get various responses from suppliers who call me asking about this ESG animal. They think it is a thing for the West, it is expensive to implement, it is not necessary for SMEs and MSMEs, it is about planting trees.

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Many are clueless my explanations. Maybe I am doing it wrong.

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From a supply chain perspective, the aim of ESGs is to attain a sustainable value chain.

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Here are a few areas we check when we ask for ESG related policies.

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??Environment – We are looking for sustainable sourcing and procurement practices to minimize environmental impact. ?This can be through implementation of energy-efficient measures, reducing carbon footprints, and adopting circular economy practices. Basically strides you are making to achieve environmental sustainability.

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??Social Responsibility – We look for fair labor practices and human rights. Ethical sourcing, supplier audits, worker health and safety initiatives. Are you fostering diversity and inclusivity for purposes of equity. How are you contributing towards disadvantaged and minority groups?

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??Governance – We provide supplier codes of conduct and compliance frameworks for review. This is to ensure transparency and accountability. We test your policies on anti-corruption and risk management processes to help safeguard against unethical practices. Adopting governance policies helps you build trust and mitigate reputational risks.

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We all can make our contribution towards a better universe. One step at a time.