Unlocking Competitive Edge: The Strategic Advantage of ESG Certification for Vendors, Suppliers, and Partners
Stringent regulations are making businesses responsible not only for their own actions but for their vendors too. In today's rapidly evolving business landscape, a new wave of consciousness is reshaping how companies operate and collaborate. Environmental, Social, and Governance (ESG) factors have emerged as critical considerations for businesses striving to align their operations with sustainable practices and societal values. One of the best ways to be ESG compliant is to become ESG certified. As an ESG-certified vendor or supplier, you would be one step ahead of the competition, offering more than just your core offerings.
In this context, being an ESG-certified vendor, supplier, or partner has become more than just a badge of honour—it's a strategic advantage that can open doors to new opportunities and foster long-term success.
What is ESG Certification?
ESG certification refers to the process of verifying and validating a company's adherence to Environmental, Social, and Governance (ESG) criteria and standards. It involves an independent assessment conducted by a third-party organization to evaluate a company's ESG performance, practices, and disclosures.
ESG certification means that the company has demonstrated the highest level of ESG compliance.
ESG certification covers topics in areas such as:
- Environmental: Concerns like greenhouse gasses, energy management, and carbon footprints.
- Social: Framework for fair work practices, diversity, equity and inclusion, workplace health and safety, data protection, and privacy policies.
- Governance: Ethical business practices including anti-bribery management policies, regulatory compliance, company leadership, and management, and board composition.
By embracing ESG principles, companies can profoundly impact their bottom line, society at large, and the planet we call home, consequently attracting more business opportunities, building stronger relationships with clients, and gaining a competitive edge in the market.
A Closer Look at ESG Self-assessment and How it Works
An ESG self-assessment typically involves several steps to evaluate and measure a vendor or supplier's environmental, social, and governance practices. Here’s a look at the key steps that the CRIF Synesgy framework follows:
A specialised survey is an essential instrument for evaluating environmental, social, and governance (ESG) practices. These surveys draw from up-to-date and rigorous global ESG market regulations such as UNGC, GRI, UN 17 SDGs, EBA LOM, and EU Taxonomy for Sustainable Activities.
In general, the questionnaires follow a two-tiered approach. Initially, a fundamental version incorporates questions aligned with the Global Reporting Initiative (GRI) and emphasises the principles of Business, Environment, Social, and Governance.
Additionally, a sector-specific section is included depending on the company's industry. The Synesgy questionnaire is certified by the CRIF Rating Agency (CRA), which holds recognition at the European level.
A combination of automatic and manual checks is employed to uphold data and response integrity. The Synesgy platform utilises an alert system that leverages CRIF information assets to automatically verify the appropriateness and consistency of the reported information in the questionnaire.
When the Alert system detects inconsistencies, the respondent must provide supporting documentation to validate the questionnaire answers. Skilled analysts then examine the documentation and may directly communicate with the respondent to resolve any discrepancies.
Support and Consultancy
Synesgy offers comprehensive customer care and consultancy services in every country where it operates, ensuring consistent support throughout the entire process. The customer care team is dedicated to assisting clients at every step, including comprehension of ESG principles, questionnaire completion, and certification acquisition.
Assessment and Development Plan
Synesgy's final assessment delivers a score and certificate to the respondent, readily downloadable from the platform, providing an evaluation of sustainability, accountability, and transparency. The assessment evaluates ESG performance through an overall score encompassing all five macro-sections within the questionnaire. Additionally, the company receives the Synesgy action plan, which identifies areas for improvement to enhance its sustainability level.
How Synesgy Can Help Drive Sustainability
Synesgy, backed by CRIF Ratings (CRA), a leading Global Credit Rating Agency, is a highly trusted provider of business sustainability ratings. We aim to facilitate the transition to sustainability within the dynamic business ecosystem by leveraging cutting-edge technology and unmatched global expertise.
Our innovative digital ESG reporting framework offers a concise visual representation of scores obtained in the questionnaire's five macro sections: Business, Environment, Social, Governance, and Sector. These scores are synthesised into an "overall" score, comprehensively evaluating sustainability performance. As vendors and suppliers, you can use our ESG performance dashboards to analyse and view your scores across different areas.
Upon completing the questionnaire, your Synesgy score will be integrated into a downloadable certificate accessible on our digital platform. The certificate remains valid for 12 months, after which a subsequent assessment may be necessary.
Additionally, we provide the Synesgy Report, which offers a detailed analysis of the Environmental, Social, Governance, and industry-specific sections that contribute to your ESG score and ranking. This report provides valuable insights for further enhancing your sustainability efforts.
Partner with Synesgy, the Global Digital ESG Reporting Framework & Assessment, to drive sustainable practices throughout your supply chain and showcase your commitment to a better future.
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