Supply Chain Esg Definition

The term “supply chain ESG” encompasses environmental, social, and governance (ESG) factors that affect an organization’s ability to manage its supply chain. These factors can include climate change, resource depletion, human rights abuses, corruption, and other risks.

Organizations are increasingly incorporating ESG factors into their decision-making in order to manage these risks and create a more sustainable supply chain. Many companies have set goals to reduce their greenhouse gas emissions, increase their use of renewable energy, or source materials from more sustainable suppliers.

Incorporating ESG factors into supply chain management can help organizations mitigate risk, improve efficiency, and make a positive impact on society and the environment.