Rising Importance of ESG for Business and Supply Chain
Executives increasingly recognize the importance of ESG. Customers and investors demand it, governments require it, and a changing climate makes the consequences of inaction clearer each year. An organization’s ESG practices also affect employee recruiting and retention. For most companies, more than 90% of the ESG footprint is in the supply chain. That means the bulk of your footprint—including the impact of sourcing, manufacturing, transportation, and distribution—is likely outside your direct control or ability to easily measure.
Multi-Enterprise Challenge that Includes Scope 3 Emissions
Outsourcing compounds the problem by contributing heavily to Scope 3, which includes emissions from the sourcing, manufacture, transportation, end-use, and disposal of goods. By definition, this is a multi-enterprise challenge.
To track and report ESG impacts using relevant data, you require direct connections to your partners at every tier of supply, manufacturing, transportation, and distribution. Leveraging this data to reduce your footprint takes a supply chain operating platform that enables ESG-informed decision-making for the day-to-day activities of making, moving, and selling goods. E2open is ready with the connectivity, platform, and proven solutions that address your needs.