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Nov 2, 2022

Supply Chains Integrating Environmental Strategies

Canadian companies are re-evaluating their entire supply chain to determine the human, environmental, and socioeconomic impacts of their products or services, says KPMG in Canada research. It found 64 per cent of small- and medium-sized Canadian companies surveyed currently factor environmental, social, and governance (ESG) principles including climate change into their supply chain management. Similarly, 63 per cent also say they have hired, or plan to hire, an ‘ethical sourcing manager’ to ensure their suppliers are aligned to their ESG values in principle and practice. Such a role also entails monitoring supplier non-conformance and helping suppliers become compliant. "The push in recent years from multinationals and governments to weave ESG into their procurement requirements is having an impact, as more and more suppliers, large and small, are striving to adhere to social and environmental standards," says Jean- François Letarte, partner, supply chain advisory, management consulting, at KPMG in Canada. "The global COVID-19 pandemic and Russia-Ukraine conflict exposed the vulnerabilities in supply chains and brought ESG to the forefront of the corporate agenda. The supply chain is no longer a back-office function. The public, consumers, investors, and increasingly, regulators around the world today expect companies to pay more than lip service to ESG."

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