Talking Supply Chain: Cracking the ESG Code

Environmental, social and governance, or ESG, has been a hot topic among businesses for several years now. But it seems to be running into several obstacles today. To more clearly define ESG, it typically refers to things such as carbon footprint and sustainability – that’s the E. The S applies to social elements such as how operational policies and practices impact employees. And the G refers to how regulatory and compliance obligations are met.

In many cases, it is the S and G parts of ESG that are causing companies the most issues in 2023. Over a one-year time period from mid-2022 to mid-2023, over $1.64 billion worth of products were detained at U.S. borders because of concerns about their origins. In many cases, that is not even the worst outcome. Public pressure campaigns through social media are wreaking havoc with businesses’ reputations, and their bottom lines.

Dean Alms, CPO of Aravo, is an expert on ESG and joined Talking Supply Chain host Brian Straight to discuss ESG and how businesses can ensure the materials they are sourcing are ethically sourced and not running afoul of government requirements around human rights – or public sentiment.