As with cyber security, supply chain risks also apply to the quality of ESG investing. More transparency is needed to holistically assess the integrity of ESG claims throughout the business system. Or better tracking of ESG claims throughout the supply chain though continuous assurance, testing, inspection, and certification.
Is there an opportunity to leverage the new ESG standards and develop a holistic supply chain ESG assurance process; connecting the dots for companies and investors?
... ESG investing has evolved into a $35 trillion industry ... to accurately measure a company’s ESG risks, its end-to-end supply chain operations must be considered ... when companies collect their suppliers’ performance, “selective reporting” can arise because there is no unified reporting standard ... without accounting for a company’s entire supply chain, ESG measures fail to reflect global supply chain networks ...
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