Supply Chain ESG Risk Ratings Report: 2023
Supply chain resilience: how do we achieve it? Most businesses are under-equipped to respond to the unpredictability of market volatility and global events that further impact the supply chain ESG risk landscape. Although we cannot fully anticipate war or global pandemics, we can use predictive modeling and data-driven analytics to better forecast where potential gaps in responsible sourcing programs can cause the most harm.
Each year, we highlight sourcing geographies identified as high risk to global supply chains through our Supply Chain ESG Risk Ratings Report. Through these ratings, which are updated bi-annually, we seek to illustrate shifts in key sourcing markets and convey what this could mean for future operations in these regions.
We have regions routinely identified as higher risk: China, India, Indonesia. However, this year is forcing us to also turn our focus on the West. The United States, United Kingdom and Mexico, are all exhibiting high risk levels in several key supply chain risk indices and are worth examining further.
Our 2023 Supply Chain ESG Risk Ratings Report highlights supply chain risk patterns across the world using 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:
- Developed markets like the US are no longer considered low risk for supply chain ESG risks
- Supplier transparency is declining, despite rising scrutiny from more stringent legislation
- While some companies are beginning to decouple from China, critical risks remain for new sourcing markets
Download the full report to understand the supply chain risks your organization may face. If you would like to understand more, please contact us here.