SGS-Maine Pointe, a global operations and supply chain consultancy, has released the latest installment in a three-part ebook series on environmental, social and governance (ESG) practices in the supply chain.
The series — which was published by the University of Tennessee, Knoxville’s Global Supply Chain Institute (GSCI) — began with “The Simple Guide to ESG in the Supply Chain.” Part one explained what ESG is, why it is critical to business growth, and how it can be viewed as an investment rather than a cost. It also explored why supply chains are central to ESG strategy and highlighted the broad opportunities to improve ESG performance.
Part two – “Implementing ESG Best Practices in the Supply Chain” – explored best practices, including shaping ESG goals by first being clear about an organization’s purpose. The paper also addressed the 2021 United Nations Climate Change Conference (COP26) and its impact on ESG requirements and efforts.
The final section concludes with a discussion of the return on investment (ROI) that can be generated by an effective ESG program.
“During this series, we shared why ESG has become such an important topic, details on how to implement it sustainably and effectively, and in this final paper how implementing best practices in ESG actually aligns with the corporate guideline to sustain profits. and generate ROI,” said Jeff Staub, CEO at SGS-Maine Pointe. “It is critical that we clearly and meaningfully align ESG with the core mission of how companies operate or are at risk of greenwashing.”
The final paper describes how companies can calculate ESG ROI and explores existing studies showing a positive link between ESG and financial performance. The paper also includes a case study from a large integrated energy company that partnered with Maine Pointe on ESG and supply chain optimization.
“We believe that ESG investments can be a win-win for all stakeholders,” said Alan Amling, Senior Fellow, GSCI and author of the article. “ESG investments can deliver immediate payback, even in terms of even simple changes, such as switching from incandescent light bulbs to LEDs, investing in employee relations and reducing waste throughout the supply chain.”
SGS-Maine Pointe and GSCI were also featured in a recent podcast hosted by SupplyChainBrain, where they discussed the opportunities in ESG and how business leaders are beginning to understand the long-term value creation potential of ESG.