Sustainable supply chains
Decarbonizing value chains while balancing profit targets with increasing costs and decreasing resources is one tough mission
As demands from investors, communities, governments, and customers increase across the environment, social, and governance spectrum, thoroughly understanding the supply chain is essential—organizations are now being held responsible for addressing both poor practices upstream and emission levels downstream.
Getting clear insights can be challenging. With limited visibility into supply networks beyond direct suppliers, it’s not easy to know where risks may exist.
We’re in a climate crisis
Supply chains often account for more than 90% of an organization’s greenhouse gas emissions.
Social issues are intensifying
The International Labor Organization estimates that 27.6 million people are
trapped in forced labour. This problem is exacerbated by shortages deep in supply chains, as producers and manufacturers struggling to meet demand requirements resort to the unethical treatment of workers.
Stakeholder expectations are increasing
Consumers and employees are increasingly making decisions informed by
corporations’ declared ESG impacts and priorities. Major public companies in
the United States lost almost half a trillion dollars’ worth of value between 2015 and 2019 due to ESG violations in the supply chain.
An effective and sustainable supply chain can increase organizational resilience, facilitate risk mitigation, and boost efficiency through circularity and diversified sourcing. It can also help protect against supply shortages due to scarce resources and against brand damage linked to an environmental or ethical incident.
There are four ways an organization can manage the complexities of supply chain performance for sustainability:
New accounting standard adoption services
Assurance services which address risks and improve reporting capabilities, as well as adopt
and maintain compliance with the new accounting requirements.
From assessing the business impact on operations and financial statements to changes in accounting policy, Deloitte can assist along the roadmap for your implementation.
Key support areas include:
• Financial instrument accounting assurance (IFRS 9/ASC 326)
• Lease accounting assurance (IFRS 16/ASC 842)
• Revenue recognition assurance (IFRS 15/ASC 606)
• Insurance accounting assurance (IFRS 17)
24/7 on-call accounting advisory services
Assurance services providing access to the depth and breadth of technical professionals to
assist with addressing the complex US Generally Accepted Accounting Principles (GAAP) and
International Financial Reporting Standards (IFRS) accounting issues. Services are on an
“on-call” basis, making them flexible and scalable, and include:
• Accounting events
• Strategic transactions
• New accounting standard implementation
• Financial reporting
IFRS, PSAS, ASPE, US GAAP reporting & compliance guidance
Assurance services that help businesses assess the impact on financial statements from
adopting new reporting frameworks.
Key assistance areas include:
• Financial statement impact assessment
• Development of methodological framework for adoption of, or transition from, different reporting frameworks
• Implementation of information systems
Technical assurance, remediation, and compliance
Assurance services that assist with addressing complex accounting issues and includes services such as white paper development to support accounting policy changes, benchmarking of financial reporting against peer groups and opinions on accounting positions.
Environmental, Social, and Governance Reporting Advisory
Deliver a more holistic view of corporate performance that goes beyond traditional financial
reporting and unlocks the value of your sustainability initiatives.
• Navigate the impact of ESG factors on your financial and regulatory reporting
• Create and disseminate strategic stakeholder communications related to ESG
• Deliver assurance around ESG measures and disclosures