Eurosif Report Shows Enhanced Scrutiny of Supply Chains by Investors // 09.03.2012
Eurosif, the European Sustainable Investment Forum, announces the publication of the Eurosif Procurement Report in collaboration with Bank Sarasin, the Swiss private bank. According to the report, responsible supply chain management is seen as a significant factor in reducing business risk and improving the attractiveness of an investment opportunity. The report examines the trends and factors used in assessing corporate supply chains.
“As supply chains are getting more and more complex, investors are increasingly scrutinizing how companies manage the risks related to the different tiers of suppliers. A particular focus should be placed on environmental and social risks as these can have direct reputational and financial impacts” says François Passant, Executive Director of Eurosif. “The strength of supply chain monitoring varies considerably even in the same sector such as clothing where luxury brands have a very different supply chain risk profile to the mass market retailers and therefore investors should seek to develop robust approaches to supply chain risk assessment.”
The report identifies some examples of best practices in the risk assessment in terms of sustainability. Factors included in a supply chain audit include assessing the extent of outsourcing and locations of suppliers; corporate policies and standards; effective monitoring procedures; capacity building along the supply chain and active collaboration with competitors and stakeholders as well as clear product labelling.
The report is mainly concerned with the textile and electronics sectors though the impact of supply chain management, especially regarding environmental issues, is cross-sector. A copy of the report is available here on Eurosif’s website www.eurosif.org. More information on Bank Sarasin’s sustainability know-how is available www.sarasin.com.