Concerns about regulation and risk mitigation are driving senior corporate sustainability leaders to pay closer attention to their supply chains, according to the latest edition of an annual survey by Verdantix.
“Sustainability reporting remains the area where heads of sustainability have the highest decision-making authority and budgetary control,” the firm reports, based on interviews with 260 senior sustainablity leaders. And “from the list of nine reporting activities questioned, Verdantix found that reporting on the sustainability performance of firms’ supply chains will see the highest growth in 2015 compared to 2014.”
From the United States to the European Union to Taiwan to South Korea to India, Verdantix notes that regulations are leading toward new levels of sustainability compliance. But actual supply chain improvements “will take longer to implement” due to a “disconnect between priority and capability,” the company predicts. “We have seen a worrying gap between public pronouncements on responsible supply chain policies and the reality of missing data, weak controls, and insufficient audits.”