ESG programs for Manufacturing & Distribution (M&D)
In today’s world, environmental, social, and governance (ESG) is a core pillar of value creation for organizations of all sizes. Due to an evolving set of expectations from stakeholders and pending regulatory requirements, ESG is no longer a discussion—it’s a necessity.
ESG issues specific to M&D
Every industry has different driving forces behind the development of ESG programs. The following issues are material to the M&D sector:
Over 70% of manufacturers state that attracting a quality workforce is their biggest challenge. With more than half of employees claiming they won’t work for a company that does not have strong social or environmental commitments, investing in an ESG program is a defense against the Great Resignation1.
1. https://cme-mec.ca/initiatives/2021-business-outlook-and-labour-skills-survey/
1. https://cme-mec.ca/initiatives/2021-business-outlook-and-labour-skills-survey/
Manufacturers are beginning to realize how sustainability efforts can support operations and business outcomes, including operational efficiency and cost reduction benefits by reducing water, waste, and energy use.
Organizations are implementing sustainable procurement criteria into their supplier chain management and codes of conduct outlining guidelines with respect to greenhouse gas emissions (footprints and strategies for reduction), responsible sourcing, human rights, other environmental initiatives, and regulatory compliance.
Upcoming regulation will require public companies to disclose and report on their Scope 1, 2, and 3 greenhouse gas emissions. This will put pressure on the entire supply chain to map out their carbon footprint.
Investing in an ESG program is more important now than ever. Manufacturers and distributors need to be aware of the increased pressure to measure and report on ESG metrics and demonstrate impact on issues that matter. Forming an effective, sustainable ESG strategy and leveraging technology to support your ESG journey will optimize growth and set your organization for long-term success.
Benefits of investing in ESG programs for M&D:
Early integration of an ESG program strategically positions your organization for long-term success
Supply chain optimization considering ESG imperatives.
Access to capital
Operational efficiency and innovation
Talent attraction and retention
Client acquisition
Maintain current client base