Environmental stewardship

Why is this a risk?

Government agencies strive to assess the impacts of industrial emissions and the results of efforts to curb those emissions. Companies are expected to establish evaluation systems to effectively measure output and conformance to clean air and water regulations within the regions in which they operate. Expectations for monitoring and controlled emissions don’t cease at the front gates of a company’s facilities. One of the biggest opportunities for risk is the potential for excessive emissions and waste produced by the supply chain. When issues are raised the suppliers creating the emissions are almost always directly linked to their large customers. 

This is demonstrated time and again through countless media articles, the efforts of NGOs, and government/academic studies. Due to the ability to influence the supply chain these big name brands and large Western corporations purchasing the offending supplier’s goods are called out by articles and studies exposing excessive pollutants in an effort to get them to extend monitoring activities beyond their own facilities.

 

Example of where this risk could affect you

  • Your supplier could be named in a government or NGO report for lack of conservation effort to reduce its environmental footprint in an industry with opportunity for improvement

  • Suppliers with significant chemical processing, natural resource consumption or emissions

 

What sort of suppliers could be engaged in this sort of risk area?

  • Energy providers
  • Electronics manufacturers
  • Textile plants
  • Extractives suppliers
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