How to Mitigate Risk in Your Supply Chain

The results of Coupa’s survey of 800 businesses reveal ways organizations are achieving ESG targets, despite the many challenges they are facing that make it difficult to do so.

Businesses Worldwide Seek More Transparency in ESG Data, According to This New Coupa Study

Download the new report to learn the answer to questions such as:

  • What are the top ESG priorities for organizations?
  • Are businesses doing enough to meet their ESG targets?
  • What are organizations doing to prepare for expanding ESG legislation?
  • How will data-sharing and integrated BSM help meet ESG goals?
  • What are the top 3 barriers to assessing the ESG risk of supply chain partners?
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Businesses today recognize the importance of having a positive impact on the world and embracing a social purpose beyond simply generating profits. Not only is it the right thing to do, but they face increasing pressure from multiple sources to make greater commitments and improved progress towards their environmental, social, and corporate governance (ESG) objectives. 

The purpose of our survey of 800 businesses was to find out how organizations are prioritizing ESG goals, the obstacles they are facing to achieving these goals, and the ways they are overcoming the obstacles. Download the report to find out more.

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94% of businesses stated that improving energy efficiency was important to them.
Coupa Report: How to Mitigate ESG Risk in Your Supply Chain


What is the German Supply Chain Act?

In short, the German Act on Corporate Due Diligence in Supply Chains (commonly referred to as the German Supply Chain Act) requires that, starting in January 2023, companies operating in Germany with 3,000 or more employees must fulfill due diligence obligations by monitoring supply chains for human rights violations and compliance with environmental standards. By 2024, the law will extend to companies with more than 1,000 employees.

Are there other laws that pertain to ESG risk in supply chains?

In addition to Germany's Act on Corporate Due Diligence in Supply Chains, there is also the Modern Slavery Act of 2018 in Australia. Moreover, the United States Securities and Exchange Commission is also considering environmental, social, and governance reporting rules and requirements on climate disclosure, and the European Commission adopted a proposal for new rules on corporate sustainability due diligence in February, 2022. There is a clear trend of expanding legislation, which will make compliance challenges more acute.

Why are greater industry-wide collaboration and data sharing crucial to effective ESG risk mitigation in supply chains?

Almost all of the 800 businesses surveyed recognize that more open and transparent data sharing would help them to accurately assess ESG risk and compliance in their supply chain partners across the globe. Moreover, the lack of data sharing is the top factor preventing nearly half (48%) of businesses from accurately assessing the ESG standards of their supply chain partners. Coupa is already addressing the issue of data sharing when it comes to assessing ESG risk. Coupa's community-based approach to data sharing has already proven to be very effective in enabling companies to share diversity, equity, and inclusion data on suppliers to ensure supply chain diversification. Coupa has one of the largest databases of diverse suppliers, and as a result many companies have been able to make great progress on their diversification goals. In the same way, Coupa aims to empower companies to more easily and accurately identify ESG risk in their supply chains.