2023 Global ESG supply chain risk outlook
Examining 2023’s best and worst regions for supply chain ESG risk and the emerging issues threatening supply chain resilience.
2023 transformed the way we approach supply chain ESG due diligence. In a year defined by unrelenting and unpredictable challenges from climate change, global unrest, and increased scrutiny on ESG, businesses have been forced to enhance their ESG strategy by gaining deeper insights into the risks threatening their supply chain resilience. A key takeaway: risk is everywhere, and emerging risks demand as much attention as the risks at hand.
Each year, we highlight sourcing geographies identified as high risk to global supply chains through our Global ESG supply chain risk outlook report. Through these ratings, which are updated bi-annually, we seek to identify risk hotspots and uncover potential issues in otherwise lower-risk regions.
Our updated 2023 report highlights the best five and worst five performing regions for overall supply chain risk, and the drivers behind these results. The comprehensive report uses insights from our EiQ supply chain intelligence platform which leverages audit data and public domain data to generate risk scores for countries and regions. Key findings from this year’s scores include:
- Extreme levels of child labour risk are prevalent in our list of higher-risk countries
- Our best-performing countries are facing emerging critical issues like forced labour risk and the risk of human rights violations for migrant workers
- A significant number of workplace fatalities were detected through our media-scanning tool, indicating a rising risk exposure to health and safety violations in certain regions
The risk landscape is continuously being shaped by the issues outlined in this report, as ESG management is evolving into a vital part of business best practices. As we seek to empower businesses to succeed in a complex environment, one truth is prevalent and must be incorporated into every ESG strategy: risk is everywhere, and it must be managed robustly.
Download the full report to understand the supply chain risks your organisation may face. If you would like to understand more, please contact us.