Environmental, social and corporate governance (ESG) has been a contentious topic amongst companies globally. Companies need to have full visibility over the ethical and environmental goings-on of their supply chains; however, often, the cost and time that goes into tracking does not offer enough value.
It applies to sectors from mining and minerals to clothing and food, and it’s becoming more and more relevant as time goes on.
The reputational benefits
Reporting on your ESG has massive reputational benefits. This is due to the fact that more consumers are becoming interested in ethical and sustainable sourcing. By ensuring your company abides by ESG standards, you can ensure that you align with ethical consumers as well.
Promoting a positive work culture can transform the way your customers, whether consumers or other companies, perceive you.
The internal company benefits
There are a myriad of internal company benefits when it comes to adopting ESG standards. These can range from cost savings to efficiency optimisations. Companies ensure cost savings when they implement ways to track ESG across their supply chains.
This is because having visibility over a supply chain delivers insights that executives would not otherwise have access to, such as sources of excess spending, money loss, or environment efficiency that may also tie into cost savings. One opportunity for this is in saving fuel. While detecting and handling fuel loss delivers environmental savings, it is also an opportunity for saving money.
Transforming the environment & human rights
The case for helping the environment and supporting ethical standards should be clear. By uplifting weak parts of the supply chain and ensuring visibility to diminish any possibilities of child or forced labour, companies reduce their impact on the environment, support ethical change, and cultivate a positive company image.
In addition, reducing a company’s impact on the environment largely changes the way they are perceived in the mainstream media and by consumers. This can create massive amounts of traction and increase consumer interest.
Blockhead Technologies is supporting companies in tracking ESG in their supply chains with STAMP Supply. You can find out more about STAMP Supply here or contact us here for more information or a demo.