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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.

Take-Aways

  • Environmental, social and governance (ESG) performance will continue to take on increasing importance for energy companies.
  • A working ESG journey involves five steps: Create transparency, set targets and design initiatives, engage suppliers, activate ecosystems, and organize supply chains.
  • Consider creating an ESG center of excellence within your company, and partnering with financial institutions to create incentives for suppliers.

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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