- As we try and develop and initiate an ESG strategy
that will span across our global supply chain,
we can't really make change happen
unless we know who is in our supply chain
and how we're all interconnected.
So it might be helpful to use a picture,
more specifically a supply chain map.
Let's imagine we are part of a global coffee supply chain.
We sell coffee in thousands of cafes all over the world.
We have roasting plants, warehouses
and DCs that store food, coffee and packaging.
We partner with trucking
and ocean shipping companies for deliveries.
Our materials and ingredients are sourced
from farmers and ranchers, cup and lid producers,
coffee machine manufacturers and even furniture companies.
Maybe we even list
where each supply chain partner is located.
Remember, we want to measure the overall ESG impact
of our supply chain.
So next, we can look to our KPIs.
Which of these partners will need to provide us
with carbon footprint data?
Which partners will utilize fresh water
in operations related to our company?
What's the employee gender breakdown for each partner?
And what are the hourly wages for employees?
How much landfill waste is produced
by each supply chain partner?
This supply chain map will help us identify
who will need to share data with us,
what type of data we may need from them
and where they are located, and thus, which ESG rules
may be important in their region of the world.
The map may even help us see
how our company may need to provide support
and education to our partners.
Remember, many partners may not know
how to gather this type of data.
We may even discover opportunities
where our company can work together with a business partner
to gather better data, develop solutions or share costs.
As you can imagine, creating detailed supply chain maps
and gathering data from the companies in our maps
can be challenging.
But don't worry, there are some organizations
that have applications that can provide guidance,
and some can even help you map parts of your supply chain
that maybe you didn't know existed.
As you can see, supply chain maps are excellent tools
in initiating and tracking progress
in our ESG supply chain initiative.
As you begin to list your stakeholders
and define your ESG objectives,
supply chain maps can drive your team
to have important discussions
to discover ESG opportunities and challenges.
These maps will also help you develop
and refine your ESG strategy.
They might even help us develop better ESG KPIs
and then show us where to find the ESG data.