While driving Environmental, Social and Governance (ESG) in the supply chain can be a dynamic force for positive change and growth, it is still far from easy. Brought together for a special report in The Times - 'The path to a greener future', this panel of ESG thought leaders address six key areas that are particularly difficult to tackle, but critical for success:: governance, scope-three emissions, ‘walking the talk,’ culture change, partnerships and compliance.
Governance: putting the ‘G’ in ESG
While all three ESG criteria are inevitably interrelated, for Karin Reiter, global head of ESG and sustainability, at Adecco Group, governance is probably still the bedrock on which sustainable value creation is built. She says: “It is the ‘G’ in ESG that really underpins the ability of a company to achieve its environmental and social goals. The ‘G’ enables us to thrive from an ‘E’ and and ’S’ perspective.” Given the recent acceleration in ESG-driven legislation and regulation at a national level, but also a supranational level, there has been a specifi c focus on human rights due diligence across the value chain. This has raised the stakes for risk, adds Reiter: “For companies, the risk of getting it wrong is increasingly reputational damage, compliance costs, also the potential loss of business, plus the question of your ability to attract talent, beyond the societal impact.”