ESG assessment in the supply chain evaluates suppliers on environmental, social, and governance parameters such as carbon emissions, energy use, waste management, labor standards, human rights, and ethical business practices. It is essential because strong ESG performance reduces operational risks, builds investor confidence, strengthens brand reputation, and ensures compliance with global regulations like EU sustainability directives.
How Can Raapyd Help With ESG Assessment Of Your Vendor Base
- Automobile
- Digital Retail Solution
- Distribution Management System
- Vendor Management
Supply chain management is an intricate field governed by several rules, guidelines, and strategies. These include dealing with businesses in uncontrolled marketplaces, putting workers in risky situations, producing subpar goods, corruption, etc.
Moreover, the evolving business landscape requires you to examine multiple aspects of your operations. For instance, there’s a higher demand for your operations’ sustainability and environmental, social, and governance (ESG) aspects in light of stakeholder pressure and growing regulations in India and overseas.
Today, besides meeting regulatory or customer requirements, ESG stands out as a way for supply chain firms to proactively detect and minimize risks. It is an important aspect of an organization, allowing it to achieve cost and resource efficiencies along with top-line growth.
However, a manual approach to understanding, mapping, and assessing the ESG aspects of your supply chain is tedious, particularly where there is a large supplier and customer base. Solutions like Raapyd play an important role in leveraging technology to deliver results and advance the sustainability aspects of your end-to-end supply chain.
In this blog, we look closely at how Raapyd helps with the ESG assessment of your vendor base.
What are the ESG Criteria for the Suppliers?
As Indian and global companies set up their own ESG targets, they increasingly require their suppliers to embark on a similar sustainability-focused journey. Suppliers need to start embedding ESG aspects into their business operations. Carbon footprint and wider GHG emissions, energy consumption, waste management, health and safety, human rights, and robust policies and governance structures are key parameters that large multinationals are assessing suppliers on.
Expanding regulatory requirements in India and globally, particularly in the EU, are also driving the focus on ESG aspects of an organization’s wider supplier base. Companies that proactively adopt strong ESG partners and practices gain from higher investor and customer trust, better risk management, improved brand recognition, and compliance. As a corporate owner or a procurement specialist, evaluating suppliers on ESG and wider sustainability parameters is becoming essential to developing a robust supply chain.
Why Raapyd with ESG to Automate Vendor Base?
Raapyd ESG is an evaluation and reporting tool that assists businesses in managing the sustainability performance of their suppliers. It helps businesses assess vendors on ESG parameters and collect and manage their data centrally.
Here’s how Raapyd ESG helps your organization in managing the ESG aspects of your suppliers:
- Supplier screening and monitoring for ESG compliance.
- Gather carbon footprint (your organization’s Scope 3) data from your suppliers, through our in-built GHG calculator
- Identify the carbon impact of your supply chain and set a reduction plan.
- Benchmark suppliers to identify opportunities and hotspots for improvements.
- Gather wider ESG data from your supplier to advance your organization’s wider sustainability agenda.
Alongside the technology capabilities, we also provide initial consulting support to help your organization identify key value chain partners and suppliers to reach out to for ESG discussions and data collection. We also help in developing tailored questionnaires for your supplier base which subsequently can be automated through Raapyd ESG’s platform for efficiencies and real-time data collection and monitoring.
Benefits of Supplier Sustainability and Procurement
- Financial Performance – It has been evident in recent years that businesses with the strongest ESG performance are better able to draw in capital and lower their financing costs. Investor decisions are now significantly influenced by focus on ESG and sustainability.
- Brand Value – Commitment to the environment, society, and ethics builds a brand’s value and improves its reputation over time. Various researches suggest that sustainable brands are more appealing to stakeholders, partners, workers, and customers.
- Risk Exposure – Proactively monitoring suppliers can help safeguard the business against reputational risks, supply chain disruptions, and possible financial losses.
- Innovation – Suppliers that prioritize sustainability have the potential to become valuable allies in the fight against supply chain inefficiencies and environmental damage and in advancing an organization’s wider impact.
- Regulatory Adaptation—Sustainability regulations in the EU and other key export jurisdictions like the US, Canada, and Australia are getting stricter and will eventually impact businesses of all sizes, not just big corporations. Adapting to such an evolving regulatory landscape entails giving oneself a competitive edge over rivals.
Contact us to learn more about our ESG solution and explore how these elements can work together to make your supply chains more resilient and sustainable.
Frequently Asked Questions (FAQs)
Companies should evaluate suppliers using criteria such as:
• Carbon footprint & GHG emissions (Scope 1, 2, and Scope 3)
• Energy consumption & renewable energy adoption
• Waste & water management practices
• Worker health & safety standards
• Human rights, fair wages & ethical labor practices
• Anti-corruption, transparency & governance policies
These metrics help build a resilient, ethical, and compliant supply chain.
• Carbon footprint & GHG emissions (Scope 1, 2, and Scope 3)
• Energy consumption & renewable energy adoption
• Waste & water management practices
• Worker health & safety standards
• Human rights, fair wages & ethical labor practices
• Anti-corruption, transparency & governance policies
These metrics help build a resilient, ethical, and compliant supply chain.
Raapyd ESG automates supplier sustainability assessments by enabling ESG screening, collecting carbon footprint data using an in-built GHG calculator, benchmarking suppliers, and identifying high-impact hotspots. It centralizes ESG data, offers real-time monitoring, and includes customizable questionnaires. Raapyd’s consulting support helps organizations prioritize suppliers and design tailored ESG assessment frameworks.
Integrating ESG into supplier management improves financial performance, strengthens brand reputation, reduces risk exposure, and enhances operational resilience. It fosters innovation across the value chain and helps organizations stay compliant with global regulations. Sustainable suppliers improve long-term stability, reduce compliance risks, and provide a competitive advantage in both domestic and international markets.
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Empower Your Supply Chain with ESG Excellence
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