Nearly half of compliance and procurement professionals find it difficult to identify environmental, social and governance within customer due diligence processes. Brian Alster discusses this and other findings from a recent Dun & Bradstreet survey.
There is little doubt amongst supply chain industry experts that knowing and actively managing potential risk is essential to the success of an entire supply chain system. Supply chains are highly complex structures often spanning multiple countries and tiers of third parties’ outsourcing and offshoring outside of a company’s core operations, leaving them vulnerable to new and evolving risks every day.
Dun & Bradstreet’s third Compliance and Procurement Sentiment Report, which surveyed over 600 industry professionals from both the U.S. and U.K., found that environmental, social and governance (ESG) screening and monitoring was among the top concerns of industry professionals, a fast-rising third-party risk management issue.
While the tenets of ESG are generally understood as the measure of the sustainability and ethical impact of an organization, what remains to be clearly defined for organizations is how to monitor for, assess and comply with ESG standards within third-party risk management programs.
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