Most retailers still don't correlate ESG aspects with the supply chain
A study carried out by Amcham Brazil in partnership with the Humanizadas consultancy analyzed the readiness for innovation and the adoption of trends in 694 companies from various sectors. The results reveal that, for six out of ten retail executives, strengthening relationships with suppliers is crucial to boosting growth, alongside brand management, reputation and customer loyalty.
What is ESG?
ESG refers to the environmental, social and governance criteria that companies adopt to assess their social and environmental performance and impact. These criteria include sustainable practices, diversity and inclusion, transparency, business ethics and compliance with laws and regulations.
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Strengthening relations with suppliers and ESG aspects
Although the importance of supplier relations is recognized, the survey reveals a gap in the correlation between this strengthening and environmental, social and governance (ESG) aspects. Only 20% of the retailers interviewed believe that ESG actions can boost their companies' growth. However, a robust sustainability strategy, which includes a close relationship and tracking of the supply chain, can prevent legal and reputational risks, as well as generating a positive financial impact.
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Adoption of ESG and sustainability criteria
For more than half of the respondents, the adoption of ESG criteria and sustainability strategies will be one of the main factors impacting their organizations in the coming years. However, many executives still underestimate the potential for innovation in logistics and the supply chain, recognizing a low capacity for execution in this area. This highlights the urgent need to deepen understanding of ESG aspects and their impact on business reputation and sustainability.
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How can a company start incorporating ESG criteria into its operations?
To start incorporating ESG criteria, a company can carry out an assessment of its current performance in relation to these criteria, identify areas for improvement, set clear targets and metrics, involve relevant stakeholders, implement sustainable policies and practices, and regularly monitor and report on its progress.
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Conclusion
The study by Amcham Brasil and Humanizadas highlights the importance of strengthening relationships with suppliers and integrating ESG criteria into relationship management. This approach not only boosts the growth and reputation of retail companies, but also strengthens their long-term sustainability. It is essential that retail executives train and raise awareness of the positive impacts that an ESG approach can bring to their business, preparing them for the challenges and opportunities of the future.
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