As the global economy scales, consumer wants, investor needs, and market trends are continually evolving. Addressing each equally creates a business demand for trust, of which, an Environmental, Social, and Governance (ESG) Supplier Sustainability and Responsibility program is a must-have.  

The shift to trust management has accelerated ESG prioritization across industries. The pandemic, a catalyst to both social and business transformation, sparked record insolvency rates and broke down supply chains, prompting an increased need to emphasize cybersecurity and investor relations — beginning with the supply chain. As visibility into supply chain functions grew, organizations found — or were informed — responsibility to best practices and compliance in the ESG realms of their business extensions were no longer a recommendation; rather it became as important to the bottom line as privacy, security, and ethics.  

Read more to learn about how OneTrust can assist with supplier sustainability and responsibility solutions. 

What is Supplier Sustainability and Responsibility? 

Supplier sustainability and responsibility refers to a company’s dedication to considering both the direct and indirect impact of itself and suppliers on critical environmental and human factors throughout the supply chain – a consideration rooted in ESG. Relevant supplier sustainability and responsibility focus-points include:  

  • Environmental: Climate change mitigation and adaption, sustainable water usage and marine protection, the prioritization of a circular economy, pollution prevention and control and the protection of biodiversity and ecosystems 
  • Social: Labor relations, diversity and inclusion issues, health and safety conditions, and human rights and labor standards when dealing with their own employees, as well as with third-party suppliers, customers, and the community at large 
  • Governance: Corruption, executive pay, tax avoidance, director nomination, cybersecurity, company leadership, audits, internal controls, shareholder rights 

Why Supplier Sustainability & Responsibility? 

Supplier sustainability and responsibility solutions further a business’ visibility into its ESG risks, empowering organizations to see sustainability and responsibility on a larger scale.  

Key Supplier Sustainability & Responsibility Considerations 

Supplier sustainability and responsibility is a concept engrained in world-class ESG programs. As the concept becomes a key consideration for critical stakeholder groups, an emphasis is being placed on business accountability that starts from a company’s internal values and extends to the sustainability and responsibility of its supply chain. What areas of the business do supplier sustainability and responsibility matter to? 

Investors 

The modern ESG model and its emphasis on supplier sustainability was created as a way for investors to better target their investments in environmentally and holistically secure areas. This model has now expanded to something much more, piquing the interest of stakeholders, the public, and global regulatory authorities. This makes considerations and actionability around supplier sustainability and responsibility crucial to the maintenance of key stakeholder relationships.  

Risk Teams 

Supplier sustainability and responsibility, when considered from a risk-focused perspective, calls for the continuous monitoring of ESG-specific risk vectors throughout the supply chain.  

Compliance Teams 

As ESG considerations become more prevalent across the market, regulations are emerging and it’s important for your business to prioritize regulatory compliance internally and throughout the supply chain.  

How can OneTrust Help? 

OneTrust’s Supplier Sustainability & Responsibility software helps organizations assess their suppliers’ Environmental, Social, Governance (ESG) programs, analyze reputational risk, create supplier ESG scorecards and set targets, as well as monitor the sustainability and responsibility initiatives of their suppliers.  

Read more to learn about how OneTrust can assist with supplier sustainability and responsibility solutions.