SUPPLIER RELATIONS

In today's interconnected global landscape, the reach of value chains extends across borders. Merely focusing on direct control is no longer sufficient for companies. Customers now hold them accountable for any mistakes made within their product ecosystem, even if those errors are the responsibility of partner companies.

To meet customer expectations and establish genuine sustainability, global companies must ensure responsible business practices not only within their own organization but throughout their entire value chain, including suppliers. While imposing certain ESG (Environmental, Social, and Governance) requirements on suppliers may initially seem burdensome, it actually presents a valuable business opportunity for well-organized suppliers in terms of ESG reporting. Such suppliers are rewarded with increased investments and sales compared to their less organized competitors.

BBJ Group assists suppliers in addressing inquiries like:

• What is the extent of environmental and social reporting among your direct suppliers, either directly to you or publicly? This includes reporting on material indicators such as environmental and social initiatives, as well as their footprint (e.g., carbon or water footprint).
• How do you incorporate the engagement and performance of your supply chain into your own reporting?
• Have you established measurable performance targets internally related to ESG risk management in the supply chain?
• Have you developed a roadmap for improving ESG within your own supply chain?