ESG Transmission in Supply Chain: ESG Special Report III

In the era of economic globalization, stable industrial chain and supply chain underpin the smooth operation of the economy. However, in recent years, due to various uncertainties such as COVID-19, ongoing shortages of materials and labor, supply-demand imbalance, and the escalation of geopolitical issues such as Russia-Ukraine conflict, the global industrial chain and supply chain come under disruption and disorder.

With the continuous promotion of the United Nations Framework Convention on Climate Change and the Convention on Biological Diversity on environmental issues, the EU, Germany, UK, US and other developed countries and regions have issued corresponding regulations on supply chain management to supervise. More and more multinational enterprises begin to pay attention to the threats to business operations, financial performance and brand reputation brought by issues such as environmental pollution, raw materials and natural resources shortage, labor health and safety incidents in the supply chain. Sustainable topics in environmental (E), social (S), governance (G) and other fields have become important for improving the security and sustainability of the supply chain.

China is the world's second largest economy and the world's largest manufacturing country, playing a role of "ballast stone" in the global industrial chain and supply chain. Whether Chinese enterprises can quickly respond to the latest ESG requirements and trends in the global supply chain, have deeper participation in the international division of labor, and improve the development resilience of the global supply chain is not only related to the continuous rise of China's economy, but also to global sustainable development as well as world prosperity and peace.

In order to promote more Chinese enterprises to deploy in advance and manage risks more comprehensively and systematically, and ensure that their complex and diverse supply chain systems can remain resilient in the face of global uncertainties, especially to promote leading enterprises to play a role in improving ESG performance evaluation, shaping industry influence and leadership in supply chain collaboration and sustainable development, GoldenBee Consulting releases the ESG Transmission in Supply Chain - Supply Chain Special Report of the ESG Competitiveness Progress Observation Report 2022, and the main contents are as follows:

1. Trigger: ESG compliance disclosure requirements extend to the supply chain

The Report interprets the provisions of supply chain management and information disclosure in the EU's latest ESG-related regulations and policies, and their impact on EU market participants, especially Chinese enterprises.

2. Response: ESG due diligence management

The Report analyzes the current understanding and practice of Chinese suppliers on customers' ESG disclosure requirements in the global supply chain, focuses on ESG due diligence issues in the supply chain, and provides reference suggestions on applying the Organisation for Economic Co-operation and Development (OECD) Due Diligence Guidance for Responsible Business Conduct and the response to EU’s Regulation on deforestation-free products.

3. Transmission: ESG management beyond first-tier suppliers

The Report analyzes the supply chain management beyond the tier-1 supply chain currently appearing on special issues such as climate change, labor issue and human rights, and key raw material management, and analyzes the pressure model of the entire supply chain connected by ESG transmission, and its impact on ICT, automobiles, and other industrial chain cases.

4. Management: ESG collaboration between suppliers

Taking the latest practice and research findings of Drive Sustainability, a sustainable supply chain project jointly carried out by leading automotive brands as an example, the Report analyzes the trend and significance of leading enterprises in the downstream supply chain to jointly establish and improve the corresponding collaboration mechanism to achieve long-term sustainable development of the supply chain.

For more information about ESG and sustainable supply chain, you can contact GoldenBee Consulting's team at:

E-mail: esg@goldenbeechina.com

Tel: 010-62132901