As this article explains wonderfully, Supply Chains are now facing a three-headed monster looking for environmental disclosure information:
- The first is trade compliance – Foreign Entity of Concern (FEOC) demands require specificity that most procurement departments are not set up to provide.
- The second is Scope 3 emissions disclosures – California’s Climate Corporate Data Accountability Act (SB 253) requires Scope three disclosures beginning in six months for companies over $1b. The EU’s Corporate Sustainability Reporting Directive (CSRD) looks at value-chain emissions also. Neither of these, nor the others coming online, will be easy for procurement departments or vendors to address.
- The third is investor and buyer scrutiny – Studies are showing that companies that have command over their supply chain carbon emissions are differentiating themselves from their peers who do not.
Bottom line – this is not going away and will only increase. Those organizations that get ahead of it are taking market share from those who are not.
If you want to differentiate from your competitors and take market share, read this on what you want in a sustainability program, watch this master class, and contact us.