Sustainalytics Launches Supply Chain ESG Solutions for Companies

Corporate sustainability and procurement professionals can leverage Sustainalytics’ industry-leading ESG ratings and data to identify supply chain ESG risks

Sustainalytics, a Morningstar company and a leading global provider of ESG research, ratings, and data, today announced the launch of its Corporate Supply Chain ESG Solutions, which include online access to company-level ESG ratings and data within Sustainalytics’ extensive research universe. Since the start of the COVID-19 pandemic, companies of all sizes have been intensely focused on improving the resilience of their supply chains. Leveraging Sustainalytics’ Corporate Supply Chain ESG Solutions, corporate social responsibility (CSR) and procurement professionals can holistically evaluate the ESG risk management performance of their direct and indirect suppliers.

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Over the last several years, companies have placed more attention on sustainability practices, and that focus has increasingly extended to their suppliers and partners. Numerous industries, especially those with larger supply chains, tend to be exposed to more risks, including labour disruptions, workforce health and safety incidents, human rights issues, and shortages of natural resources. Consequently, companies are under greater pressure from investors, customers, and regulators to address the ESG risks in their supply chains to mitigate reputational and operational risks. Hundreds of the world’s leading institutional investors leverage Sustainalytics’ ESG Risk Ratings. Now, companies can benefit from the same consistent ESG insights which underpin its Corporate Supply Chain ESG Solutions for applications, including:

• Assessing suppliers’ ESG issues to better understand exposure to material ESG risks
• Conducting an in-depth sustainability assessment that measures a company’s full economic and social impact, including the activities of partners and suppliers
• Reviewing potential vendors and partners before entering new supplier or partnership agreements

“Corporate executives are asking their procurement leaders to assess the ESG risks of their suppliers and partners to limit risk exposure and comply with increasing regulation in supply chain operations,” said Francesca Placa, manager of corporate solutions at Sustainalytics. “By providing a high-quality, standardized approach to assess company-level material ESG risks, Sustainalytics is well-positioned to help companies determine which suppliers may require the most in-depth evaluation on ESG issues.”

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Sustainalytics’ ESG Risk Ratings are unique in the industry in that they offer an absolute measure for assessing company-level ESG risk. By providing a consistent approach, the firm’s ratings are comparable for companies in different industries. The ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks.

Interest in ESG issues continues to accelerate rapidly among investors, employees and customers, leading company executives to prioritize these considerations throughout their organizations. As a result, more corporate issuers are leveraging their ESG performance to reduce the cost of capital, benchmark against peers, improve their shareholder engagement, and demonstrate their long-term commitment to sustainability.

Sustainalytics’ ESG ratings and data in its Supply Chain ESG Solutions are delivered through the firm’s ESG Assessment Platform, offering CSR and procurement professionals the ability to easily measure and compare suppliers.