Environmental factor  will focus primarily on climate measures, water and waste management, loss of biodiversity, basically range 1 and range 2 emissions. Sat social initiatives workplace health and safety, child labor and community rights are monitored. A management  will control violations of business ethics (corruption and bribery). Misleading information in an ESG report can cause companies a huge financial penalty as well as a loss of face value in the market.

If the supply chain is divided into 2 main categories, the solutions below alleviate business pains and make the process more transparent by reporting real data.

1. Against the current

Design

The product should be sustainable in terms of product design. It is recommended to offer consumers a product that is reusable and also recyclable. This reduces a large part of the negative impact on the environment.

Plan

In the planning phase, attention is focused on the procurement of material to measure CO2 production. Therefore, vendors are preferred to deliver an environmental ESG goal as well as share their ESG goal.

source

The process of obtaining raw materials should eliminate forced labor and comply with trade regulations.

2. Downstream

Production

It is the process of manufacturing finished goods, which includes labor, machinery, consumption of energy, water and raw materials. Therefore, safety and health protection when working in a given environment is of the utmost importance.

Deliver and return

The busiest part of the business is the storage, delivery and return of products. With a transport and logistics management system, a business can reduce its CO2 footprint through improved mileage management. An optimized warehouse equipped with renewable energy helps businesses meet their net zero goals.

ESG, being the intersection of any functional/business area, would be a fundamental checkpoint going forward. However, traders or asset managers should be aware that they must constantly monitor these indicators to achieve their ESG goals. (Source SAP)