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Boosting ESG Performance in Today’s Energy Supply Chains

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Boosting ESG Performance in Today’s Energy Supply Chains

Boston Consulting Group,

5 Minuten Lesezeit
3 Take-aways
Audio & Text

Was ist drin?

Think you can kick the ESG can down the road for a few more years? Think again.

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Editorial Rating

8

Qualities

  • Analytical
  • Eye Opening
  • Overview

Recommendation

In an effort to better understand environmental, social and governance (ESG) issues in the energy industry, the Boston Consulting Group interviewed the chief procurement officers at 25 leading energy companies to find out how they’re handling ESG standards across their supply chains. Every last one of them commented on the mounting pressure to address ESG issues, but found that collecting data from suppliers poses a major obstacle. In this article, Boston Consulting Group experts provide tips for creating an ESG performance road map that supports and encourages suppliers to meet ESG standards.

Summary

Environmental, social and governance (ESG) performance will continue to take on increasing importance for energy companies.

The stakes for ESG are higher than ever, and they’ll continue to climb. Companies that fail to prioritize ESG are likely to fall to the wayside. To make sure your company isn’t one of them, start by defining your ESG priorities, then create a strong vision for your ESG journey. 

Your company likely already has diversity requirements, ethics standards and existing plans for reducing scope 3 emissions. Now it’s time to apply those standards to supply chain networks, adapting to specific contexts as needed. 

A working ESG journey involves five steps: Create transparency, set targets and design initiatives, engage suppliers, activate ecosystems, and organize supply chains. 

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About the Authors

Alex Dolya, Pietro Romanin, Daniel Weise, Francesco Palmieri Lupia, Laura Alice Villani and Harish Hemmige are professionals with the Boston Consulting Group.

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