“ESG ratings impact profitability – regardless of what industry your company is in. People like to know that the companies they interact with and buy from are companies that do good in the world.”
― Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth
How supply chain traceability software helps you comply with ESG standards ?
Adopting ESG principles is essential for businesses and investors alike now that sustainability is a significant concern on a global basis. Environmental, social, governance, and corporate responsibility are part of the ESG framework. Environmental aspects include waste management, energy efficiency, and how much a business or government contributes to climate change through greenhouse gas emissions. Decarbonizing and reducing emissions are even more crucial due to increasing efforts to combat global warming. Social concerns include respect for human rights, labour laws in the supply chain, knowledge of child labour that isn’t legal, and everyday concerns like observing workplace health and safety regulations. If a business is assimilated into its neighbourhood and so has the community’s support, it will also receive higher social scores.
ESG investing focuses on businesses that uphold ethical environmental, social, and governmental standards. ESG is a growing industry that has a beneficial impact on society and the environment today because investors are more ready than ever to align their portfolios with ESG-related businesses and fund providers. Whether you want to align your investments with your principles, ESG investing may or may not be the appropriate choice for you. You can use one or more of the several ESG rating systems that have emerged in recent years to design the ideal portfolio, or you can think about an ESG-tailored mutual fund or ETF.
Applying ESG guidelines throughout your value chain is crucial. Adopting an end-to-end traceability tool is the best course of action because it is a potent instrument based on data management. It makes it possible to follow and trace a product through several production phases. Thus, a traceability mechanism can focus on ESG factors such as greenhouse gas (GHG) emissions, water use, waste management, human rights, fair labour practises, progressive board composition, business ethics, community relations, First Nations, and free, prior, and informed consent in addition to technical factors like chemistry and QA/QC (FPIC).