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Responsible Value Chain
Take ownership to sustain and grow your value chain for all stakeholders.
Responsible businesses take ownership of their value chains for longer-term stakeholder value creation. For that to be successful, transparency and traceability are key. The network of value chains in which global organizations operate is increasingly complex. Challenges stem from different performance domains and include efficiency, resilience, and scope three sustainability and regulatory dimensions.
Companies are responsible for the performance of their value chain
Responsible businesses take ownership of their value chains for longer-term stakeholder value creation. For that to be successful, transparency and traceability are key.
Brands are held responsible for their entire supply- and value chain. Even if third parties did not comply with your rules, it is still your brand on the line. Transparency on sourcing and your supply chain requires a broader perspective. It extends beyond internal processes and includes suppliers, clients, and various other third parties (known as scope 3). This presents a challenge in sourcing, collecting, and processing vast volumes of data to manage value chain performance.
- Consumers reward products and companies for doing the right thing. But, increasingly, consumers require proof of product claims and ethical sourcing.
- Lawmakers worldwide are enacting Extended Producer Responsibility that places tariffs on products based on recyclability and material re-use.
- The move toward required disclosure to investors by business of environmental and social impact and corporate governance is underway.
- A typical fortune 500 organization may use more than 100,000 external third parties to meet its business objectives and stay competitive. Smaller organizations with fewer external third parties face similar challenges.
How to manage a responsible value chain?
1. Organize & Collaborate
The basis for enabling full transparency throughout your entire responsible value chain is making sure that you speak a “common language”. Our approach for this orchestration of the value chain and entire ecosystem is to assess, update or create your frameworks and reporting standards and align those with all data and stakeholders.
2. Data Collection
Combining domain expertise with innovative technologies that integrate data from critical parties in the value chain with your own data, creating visibility, insight, and ultimately transparency.
3. Insights & early warnings
Having the organization, structure, and all relevant data in place is not enough. The real benefit of having transparency in your value chain is transforming this expertise and data into insights. Actionable insights and early warning signals varying from assurance to compliancy to performance management. This allows you to sustain and grow your business in a responsible way.
4. Operate, communicate and report
Managing the transparency in your value chain is not something you can do on your own. In every value chain, there are many different stakeholders ranging from clients, suppliers, and employees to investors, regulators, and more. An integrated responsible value chain solution connects you with all of these stakeholders and enables you to communicate, educate and cooperate. Transparency is the basis of a responsible business.
Given the large number of parties involved in a typical organization’s value chain, it takes advanced digital solutions to manage it well. This includes – but is not limited to:
- Expanding and automating data collection throughout your value chain
- Monitoring ESG risks as they emerge from millions of online sources
- Keeping up-to-date on regulatory requirements with insights into regulatory developments
- Visualization of climate risks to optimize your climate adaptation and decarbonization strategy
If you are interested to know more about how we help you manage a responsible value chain, please contact us and we’re happy to have a virtual cup of ethically sourced coffee.