Platform Can Help Businesses Manage Supply Chain ESG Risks, Goals

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Supply chain ESG (Credit: Pixabay)

To help companies improve supply chain risk management across their operations as well as address environmental, social and governance issues, software provider Avetta has expanded its platform with a risk mitigation program tackling these areas.

The new capabilities of the Avetta One system will allow companies to view their ESG efforts across their supply chains. The platform provides an ESG scoring system that considers specific company goals as well as global standards across 20 industries.

Supply chain emissions are on average more than 11 times that of an organization’s operational emissions and result in more than 90% of a business’s total greenhouse gas emissions, according to the EPA. Such numbers have made it a priority to address the sustainability impacts across their entire supply chain operations.

Supply chain technology and risk management systems are also becoming more important to businesses. A report by PitchBook showed supply chain tech companies raised $24.3 billion in venture funding over the first three quarters of 2021, 58% more than all of 2020.

The ability to trace and be accountable for supply chain efforts is related to that growth, and Planet Tracker recently said investors should demand their businesses have such systems. ESG concerns and risks have also been said to play a role in slower supply chains and disruptions.

Addressing supply chain ESG concerns can also help organizations see cost reductions of up to 10%, according to McKinsey & Company.

The Avetta platform can help by providing suppliers with analytics and sustainability ratings based on specific ESG targets, including Value Reporting Foundation, Global Reporting Initiative and Sustainable Development Goals targets.

The offering includes an ESG index, which can measure ESG compliance across specific industry and company standards. Compliance issues are seen as key ESG business and investment impacts, and the platform can provide analysis on which suppliers are meeting goals in these areas, Avetta says.

It can also measure ESG compliance and help companies and suppliers close gaps in those areas. Avetta says that also helps optimize resource distribution, enable stakeholder awareness and source new suppliers.

The system helps enable data-driven decisions, as well, which can improve corporate reporting and advance additional sustainability efforts. Avetta says its platform uses millions of data points collected over nearly two decades to provide organizations with current views on supply chain risks as well as helps alert them to deviations from baseline measures.

Environment + Energy Leader