The Overwhelming Case for Supplier Sustainability Ratings Compared to Self-Assessment Questionnaires
As stakeholder demands grow, and supply chain sustainability risks proliferate across all industries, adapting from old ways of assessing and engaging suppliers has become a priority challenge.
Leaders’ sustainable supply programs are going beyond risk management to encompass resilience, value creation, and positive impact.
Moreover, with the recent COVID-19 crisis causing on-site audits to be cancelled, this has accelerated the already growing trend for “remote/digital” assessments of trading partners to become one of the most widespread practices in the management of suppliers’ ethical, social and environmental risks.
This paper reviews the comparison between “self-assessment questionnaires” and a “performance-based” approach based on verified sustainability ratings, integrating into a broader framework that creates more value - and thus engagement - for suppliers, and long-term shared value for all.