Unlocking Sustainability: Methods for Monitoring Supply Chain Effectiveness
Managing Director, VAS – India & South Asia Markets, CRIF Solutions
How to monitor sustainability processes and evaluate your supply chain:
To monitor sustainability processes and evaluate the supply chain, companies can use Synesgy, a global digital platform powered by CRIF. Synesgy empowers businesses to access ESG performance within their supply chains, enabling transparency and risk identification. It facilitates data collection digitally, tracks and evaluates ESG KPIs, and offers detailed reports. These reports analyze environmental, social, governance, and industry-specific aspects as parameters contributing to an ESG score. Synesgy’s platform can also be used for self-assessment of one’s own company apart from getting it for the supply chain. This helps even the MSMEs to check their sustainability level and implement a unique process to qualify for ESG frameworks for all companies that require them. It also helps them obtain certification and publish it on digital assets, use benchmarks to position the company within the sector and promote their ESG scores to grow their business.
Explain the Impact of ESG on Corporate Reputation and Financial Performance:
ESG is central to modern businesses with respect to evolving global practices and customer expectations. It encompasses the three major pillars of performance measurement. Economic parameters, social responsibility and inclusiveness of diversity, and good governance measures. Being profitable is no longer sufficient; companies must consider their environmental and social impact. ESG compliance attracts confidence in the health of an organisation thereby positively impacting its reputation and financial performance.
Why ESG matters for manufacturers:
The manufacturing sector has a larger a nd more diverse workforce, raw materials, and waste materials. ESG offers manufacturers a pathway to sustainable development by providing measures and a roadmap for measuring and managing the way workforce diversity is handled and carbon emission is managed leading to driving top-line growth, reducing costs, enhancing employee productivity, and optimizing long-term investment opportunities. These benefits underscore the importance of ESG for manufacturers as they navigate an evolving business landscape.
Why is it necessary to measure carbon footprint and greenhouse gas:
Measuring the carbon footprint and greenhouse gas emissions is a fundamental responsibility. It enables environmental accountability and empowers corrective actions to combat climate change. Compliance with environmental regulations, enhancing sustainability, mitigating risks, improving efficiency, attracting investors and customers, and gaining a competitive edge depend on accurate carbon footprint measurement. Considering these imperatives, measuring emissions is not only a morally responsible step but also a strategic move for organizations looking to build and thrive in a sustainable future.
What methods can be employed to monitor sustainability processes and gauge the effectiveness of an organization’s supply chain:
To monitor the sustainability process and measure the effectiveness of the supply chain, the first step is commitment from the organisation to their ESG roadmap. The second step is data collection from the supply chain which can be used to evaluate the current standing of partners in the ESG roadmap. The third step is to correct or refine various parameters to improve of the ESG standing. SYNESGY from CRIF helps in doing all the above steps. Evaluating supply chain effectiveness involves using ESG performance dashboards. These dashboards offer detailed insights into supplier scores in various ESG areas, facilitating comprehensive analysis and continuous improvement of the supply chain’s sustainability performance.
Explaining the fundamentals of Synesgy and the overall position of carbon footprint in India:
Synesgy is a global digital platform specializing in ESG assessment. It comprehensively evaluates a company’s sustainability performance across various ESG criteria, providing scores and action plans for improvement. The assessment is based on a detailed qualitative-quantitative questionnaire to determine the organization’s ESG performance. Various automatic and manual checks are conducted to assess the quality of the responses received, with inconsistencies immediately flagged. Following the comprehensive assessment, an ESG score and a detailed Synesgy report are generated, along with an action plan identifying areas for improvement. The report includes an in-depth analysis of each ESG aspect relevant to the industry sector, contributing to the ESG score. In terms of carbon footprint, as of 2023, India has become the world’s third-largest emitter of greenhouse gases after China and the U.S., emitting 3.9 billion metric tons of carbon dioxide equivalent (GtCO₂e) in 2021, accounting for approximately seven percent of the global total, as reported by Statista.
Published- 6th Nov 2023