Sustainability a key business priority, but company practices lag behind, comment from Interos CEO

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This article is brought to you by Retail Technology Review: Sustainability a key business priority, but company practices lag behind, comment from Interos CEO.

In collaboration with Procurement Leaders, Interos, an operational resilience firm, has published research exhibiting the discordance between businesses’ intentions when it comes to sustainability and ESG issues and the practices put in place to ensure these priorities.

The research shows that although company interest in sustainability has increased dramatically in recent years – particularly where the supply chain is concerned – executives still routinely talk of the difficulties they face in making real progress against their objectives. Fundamentally, ameliorating ESG issues in the supply chain must rely on mapping and monitoring extensive and complex enterprise procurement networks with the use of AI-powered technology. Key takeaways from the research include:

  • Only 34% of companies assess their global supply chain on a continuous basis
  • 74% of businesses rely on manual methods to manage risks in the supply chain
  • 37% of company respondents say that they struggle to obtain the data they need to measure supplier sustainability accurately
  • 35% of company respondents highlight driving progress at suppliers as a significant challenge
  • Company respondents have given reducing GHG emissions a priority score of 8.2 out of 10
    • While they have a assigned a mean priority score of 9.5/10 to eradicating child, forced or slave labor
    • Worker welfare and conditions a score of 8.9 out of 10, reflecting the risk of supplier personnel contracting Covid-19
  • Approximately two-fifths (41%) of organisations report that ESG-related risk factors have caused detrimental impacts to their business over the past two years

Jennifer Bisceglie, CEO and Founder of Interos, comments: “Organisations want a sustainable supply chain – they just don’t have the reliable information and the continuous monitoring technology needed to make this a reality. Our research shows that, while most companies engage with their tier-one suppliers on sustainability, only 9% do so with those in tiers two and three. To do this companies require technology that helps businesses track the ESG risks of their extended supply chain to help them ensure they work with other companies and suppliers who meet their ethical and environmental standards by providing them with intelligent tools to increase trust and transparency.”

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