ESG

The importance of Environmental, Social, and Governance (ESG) performance cannot be overstated in today’s rapidly evolving business and financial landscape. ESG has transitioned from a mere buzzword to a defining factor influencing a company's cost of capital and its access to financial resources. Corporations now find themselves under increasing pressure to not only measure and disclose their ESG performance but to also manage associated risks effectively.

The surge in regulatory initiatives, whether related to environmental concerns, social issues, or governance standards, all emphasize one thing: the need for transparency. They push companies toward deeper disclosure, broader connectedness, and enhanced collaboration throughout their supply chains. In this article, we will explore key regulatory ESG developments, the challenges they pose, and the role of technology platforms like e2open’s on this critical ​ESG journey.​

Despite continued electric vehicle (EV) growth and adoption in Europe, United States automakers are taking a different path.

Just a year ago, the entire world was in full pursuit of moving to electric vehicles. Well, in the United States, at least, those times have changed. Pair rising inflation with the high price of EVs, and most economists would predict a slowing in EV customer demand. So, what would that slowdown mean to the automotive manufacturers and the entire EV supply chain?

California’s landmark Climate Corporate Data Accountability Act (aka SB 253) was signed into law on Oct 7, 2023. This legislation brings significant changes to the landscape of greenhouse gas (GHG) emissions reporting and will likely impact your company’s supply chain management. For help navigating compliance and understanding SB 253’s implications, this FAQ aims to provide clarity on this new California law, who it affects, and what you need to know.

The passing of the Climate Corporate Data Accountability Act(aka SB 253) into law in California is shaking the very foundation of business transparency. It will permanently alter the landscape of environmental responsibility, the aftershocks of which will be felt for years to come.

This groundbreaking legislation was proposed in January 2023, requiring stricter greenhouse gas (GHG) reporting practices for all private or public corporations operating in California with over $1 billion in annual revenues. Unlike the pending SEC rule, SB 253 leaves no room for companies to opt out of reporting on Scope 1, Scope 2, and Scope 3 emissions, which covers all aspects of a business’s extended supply chain – affecting more than 5,000 companies globally.

The soaring popularity of Electric Vehicles (EVs) has changed the face of the automotive industry forever. Recent EV sales figures in Europe indicated a 40% increase over the last five months. However, manufacturers face significant challenges as they strive to produce vehicles rapidly in response to the spike in demand. Panasonic recently recognized the need for four more EV battery plants if supply is to meet demand; meanwhile, Jaguar Land Rover (JLR) has outlined plans to create an exclusively electric production plant by 2025.

Despite increased interest from the public, world governments, and international investment firms, the electric vehicle (EV) industry remains something of a speculative market. It’s clear that there is a huge demand for EVs, especially with global greenhouse gas (GHG) emissions continuing their yearly upward trend. However, due to a tangled web of variables, the logistical difficulties of EV mass production transcend standard automotive production.

Supply chain traceability has long been a niche need for companies that wanted extra quality control measures, sought to avoid import tariffs, or wanted to qualify their imports for preferential trade status. These are still important considerations, but traceability in the supply chain is gaining momentum to address other risks.

Talk of greenhouse gas emissions seems to be everywhere today, from the shop floor to the boardroom. Not only do emissions factor heavily into the environmental, social, and governance (ESG) metrics investors care about, but it looks ever-more-likely that being a carbon emitter will soon have a direct economic cost.