Sustainability and Supply Chains - Why it Matters

Visibility of your whole supply chain is vital. Over 80% of GHG emissions are estimated to be hidden in supply chains as well as potential human rights abuses through modern slavery.? This makes supply chains the biggest sustainability blind spot for many companies.??

The challenge is that supply chains are vast, complex, and often opaque, making it difficult to track environmental, social, and governance (ESG) impacts beyond direct operations.?

The issue is regulatory pressures are mounting, and consumer expectations are shifting meaning businesses can no longer afford to overlook their suppliers. ESG reporting is fast becoming a requirement rather than a choice, and businesses that fail to align their supply chain practices with sustainability goals risk financial, reputational, and operational setbacks.?

So, how do we gain visibility, reduce risk, and build resilience in our supply chains? Let’s explore the solutions.?

Supply Chain Visibility: The Key to ESG Success?

The ability to track and measure ESG performance across the supply chain is fundamental to compliance and corporate responsibility. Yet, many businesses struggle to get the ESG data they need from suppliers, particularly from SMEs who often lack the resources or expertise to report on sustainability metrics.?

The Data Challenge?

• Inconsistent reporting standards make it difficult to compare supplier data.?

• SMEs often lack structured ESG reporting systems, creating gaps in corporate sustainability strategies.?

• Scope 3 emissions (those generated by suppliers) are difficult to measure and track accurately.?

• Supply chain risk exposure is growing, with increasing legal and financial consequences for non-compliance.?

The Solution: Data-Driven ESG Strategy?

To bridge this gap, businesses must implement the right tools and processes to capture ESG data from their suppliers:?

? Digital ESG Platforms – Tools like Wylde’s Enveglas (our proprietary ESG diagnostic tool) help businesses collect, analyse, and report ESG data from their supply chain, ensuring compliance with evolving legislation.?

? Standardised Reporting Frameworks – Aligning with CSRD, SECR, SBTi, and GRI ensures consistency in ESG data collection and reporting.?

? Supplier Training & Engagement – Many SMEs want to improve their ESG performance but don’t know where to start. Wylde’s ESG Strategy Support and Action Planning equips suppliers with the knowledge and tools to meet sustainability expectations.?

Businesses that invest in supply chain visibility not only ensure compliance but also gain competitive advantage—reducing risk, driving efficiency, and strengthening brand reputation.?

ESG Reporting: What It Means for Different Business Sizes?

For Large Corporates: Compliance is Non-Negotiable?

Regulations such as the Corporate Sustainability Reporting Directive (CSRD) and Streamlined Energy and Carbon Reporting (SECR) require businesses to disclose their ESG performance transparently.?

• Non-compliance risks: Financial penalties, supply chain disruptions, and reputational damage.?

• Investor expectations: More businesses are being asked to prove sustainability credentials as part of due diligence.?

• Supply chain accountability: Corporates are now responsible for emissions and social risks throughout their value chains.?

Large businesses must now help their suppliers align with ESG standards—or risk supply chain failures.?

For SMEs: The Opportunity to Stay Ahead of the Curve?

SMEs often face barriers to ESG reporting—limited resources, knowledge gaps, and the perception that sustainability is a “corporate” issue rather than an SME concern. However, the landscape is changing:?

• Many large corporates now require ESG data from their suppliers.?

• Tenders and procurement processes increasingly favour sustainable suppliers.?

• Governments and investors are pushing for greater supply chain transparency.?

SMEs that proactively embed ESG reporting will gain first-mover advantage, making them more attractive partners in global supply chains.?

Your next step?

At Wylde, we work closely with SMEs and large businesses alike to streamline ESG reporting and integrate sustainability into core operations. Our ESG Strategy Support ensures businesses—regardless of size—can demonstrate compliance, resilience, and sustainability leadership.?

Book a Discovery Call with a member of our team today: Link here.?

https://wyldeconnections.co.uk/book/