ESG developments are proving to be increasingly important for companies looking to ensure that their supply chains are resilient and ethical, reports Sustainability Magazine.
It’s noted that businesses with high Environmental, Social, and Governance (ESG) performances have lower risk exposure and higher ROI, and are believed to be more resilient during disruptions.
Companies from Thales to Apple are taking a closer look at their supply chains and integrating ESG considerations into their sourcing and procurement processes. This has put even more emphasis on the need for companies to have visibility into the sourcing strategies of their suppliers and to have the ability to trace their supply chains back to the source.
Supply chains are now increasingly global and complex, with the sourcing of raw materials, components, and end products becoming more dispersed around the world. To ensure the safety, quality, and ethicality of products, companies need to have the ability to trace and monitor their goods as they move through the supply chain. This means companies need to carefully inspect and supervise their suppliers, which can be time-consuming and costly.
Astute spearheading ESG
Due to the current complexities of supply chains, many companies are now turning to technology solutions to provide visibility into the sourcing process and to ensure that their suppliers and vendors are meeting their ESG standards. Astute has chosen to take the lead by working with customers on sustainability planning, supply chain interrogation, and how best to report the key sets of environmental, social, sustainability, and governance metrics.
Overall, ESG initiatives are continuing to grow in importance and companies are becoming increasingly aware of the need to have better visibility into their supply chains. It is now essential for companies to ensure that they are able to trace their goods from source, inspect their suppliers, and monitor for ESG repercussions throughout their supply chains. Technology solutions such as blockchain, artificial intelligence, deep learning, and Machine Learning are proving to be invaluable in providing better visibility into supply chains and creating a more ethical and resilient supply chain.
To avoid electronics supply-chain disruptions, you may also wish to consult an expert in electronics component supply. With more than three decades of supply-chain expertise, Astute Electronics is ideally placed to work with you on your daily component requirements.
For more help with looking at supply chain options, contact Astute Electronics
