Regulation and customer expectations are continuing to drive increased demands of ESG data and targets for supply chains in 2025. More than 70% of a company’s emissions usually stem from the value chain which makes it a crucial area to address to create change (Source: UN Global Compact).
This puts your company in a dual position of both needing to request ESG data from your own suppliers and being requested ESG data by your customers. This data is essential to track the sustainability performance and identify any high-risk suppliers where action is required.
A supply chain where all parts are aligned has the potential to have significantly more positive impact than a single company working in isolation. Substantial action happens when everyone is pulling on the same rope.
Furthermore, requests for data and collaboration with suppliers is a way to influence high-risk companies in your supply chain to begin their transformation towards greater sustainability.
Obtaining the ESG data you need from your suppliers can be challenging. One of the most common pain points we see is suppliers simply not answering or interacting with these requests. Companies are currently being bombarded with ESG questionnaires and assessments and their already limited resources are stretched. Also, the data requested by customers is often not easy for the suppliers to retrieve.
To engage your supplies in your data collection process, it is key to develop a strategy for how you are communicating this request. Consider how you can make your communication tailored, appealing and straightforward to motivate your different types of suppliers to fulfil your request. Making it clear why this is an important agenda to your company and that this is an invitation to collaborate – not a one-way demand. Another important thing to be clear about, is what data you actually need. We see customer data requests that are too vague or broad placing unnecessary strain on the supplier. You can get the data faster, if the scope of your request is more specific and realistic.
If your company has not already begun receiving request for ESG data, these will likely begin to pile up in 2025 and the coming years. As a supplier yourself, it is important to consider the impact your company has on your customer’s ESG reporting and sustainability targets. If you are prepared and have the data they need, you can increase your visibility in the value chain and position yourself as a valuable partner. Alternatively, if you are currently lacking the data your customers are requesting, you are exposing yourself to the risk of losing sales to competitors who have the data and are making a positive contribution to customers’ goals.
Being able to deliver on these requests requires structure and strong internal collaboration. Multiple stakeholders within your business such as IT, finance, and procurement need to react and contribute.
One way to achieve a more structured and effective internal approach to documenting sustainability data is choosing a rating company that is broadly used and respected for ensuring verified documentation. Instead of completing various sustainability surveys from different customers, you can streamline the process by opting for proactively sharing your chosen documentation and rating. An example of such a solution is EcoVadis where your company’s sustainability performance is assessed. Through the assessment, EcoVadis provides your company with a scorecard and potentially a medal based on your level. These are valuable data you can share directly with your customers. As a customer, you can also request your suppliers to use EcoVadis instead of creating your own questionnaire.
Mannaz has chosen to be an official EcoVadis Training Partner as we find this to be one of the most relevant solutions available to cover sustainability/ESG supplier management. We can support your efforts in successfully using EcoVadis as a supplier as well as a customer.
If you are currently navigating customer’s requesting your ESG data or if you want to strengthen your supplier engagement, Mannaz can support you in these highly collaborative efforts. Begin the dialogue now.
