How Treasury can Support ESG in the Supply Chain
An organisation’s commitment to ESG – environmental, social, and governance – must go beyond lip service, extending into real behavioural and cultural changes both within the organisation and its external partners. Treasurers can facilitate the transition to sustainable practices by providing payment incentives to deserving suppliers through solutions such as dynamic supplier finance and by encouraging the reporting of ESG data through innovative technology platforms.
The days of a company’s annual report being the major yardstick for its performance and progress are now in the rearview mirror. Organisations are increasingly being measured by much more than pure financial data, with ESG performance becoming a critical barometer.
As Colin Sharp, Executive Vice President at C2FO, notes: “ESG reporting is of great interest to shareholders and other stakeholders including customers, employees, banks, and business partners.”
Increasingly, these stakeholders will no longer do business with, or work for, organisations that do not meet their sustainability and diversity expectations.