Research Updates

How to transform supply chains with ESG criteria

Under mounting regulatory pressure and growing environmental and social awareness, leading companies are profoundly transforming their procurement models to build sustainable, transparent, and accountable supply chains.

The latest study by the Sustainable Operations and Supply Chain (SOSC) Monitor shows that integrating ESG (Environmental, Social, and Governance) criteria into procurement practices is no longer an aspiration but a rapidly evolving reality. The companies analyzed are focusing on strategic partnerships and stringent criteria to select suppliers capable of becoming true sustainability champions. This marks a historic shift, redefining the very concept of value along the entire supply chain.

The context

Sustainability in the supply chain has become central to the economic and managerial debate. Companies are increasingly called upon to ensure transparency and accountability not only within their own organizations but across the entire supplier network.

 

The SOSC Monitor study sought to answer the following questions:

 

  • What ESG criteria are companies actually using to select and manage suppliers?
  • How are these criteria integrated into decision-making processes?
  • What factors determine the success of a sustainable supply chain?

The research

The SOSC Monitor study used a mixed-method approach, combining quantitative and qualitative data gathered from a representative sample of leading companies. The analysis focused on ESG criteria applied during supplier assessment and qualification phases, as well as in tender processes.

 

Environmental factors

 

Five key environmental criteria were identified:

 

  • GHG emissions reporting (69% of companies), especially useful for monitoring Scope 3 emissions.
  • No environmental violations (65%), used as an exclusion criterion to avoid legal and reputational risks.
  • Structured waste management (56%) and environmental impact mitigation systems (58%), indicating operational maturity.
  • Environmental certifications (56%) such as ISO 14001 or EMAS.
  • Circular economy strategies (49%), emerging as a sign of innovation.

 

Social factors

 

Social factors are also gaining importance:

 

  • Human rights compliance (73%), particularly in high-risk contexts.
  • Protection of minors and gender (70%) and gender pay equity (69%), with increasing attention to DEI documentation.
  • Anti-discrimination policies (68%), and policies against child labor (64%) and forced labor (57%).

 

Governance factors

 

G-Factors are essential to ensure integrity and compliance:

 

  • Up-to-date code of ethics and sustainability reporting (84%).
  • Audits on labor practices and absence of forced labor (81%).
  • No convictions for corruption or fraud (72%) and anti-corruption training (69%).
  • Monitoring of anti-competitive behavior (68%) and ISO 19600/37301 certifications (67%).

Conclusions and takeaways

The SOSC Monitor study highlights a clear trend: leading companies are deeply integrating ESG factors into their procurement processes, from initial assessment to supplier qualification and tendering.

 

To strengthen sustainable supply chains, businesses must systematically embed ESG criteria at every stage of procurement, prioritizing measurable indicators and third-party verification.

 

Equally important is fostering collaboration with suppliers to drive innovation and transparency across the entire ecosystem. This is the path to a future where sustainability is not a cost, but a powerful driver of value and competitiveness. Will the companies that seize this opportunity be the ones to shape the future of global trade?

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