Avetta Launches Supply Chain Sustainability and ESG Risk Mitigation Solution on Avetta One Platform
Avetta®, the world’s largest provider of workforce and supply chain risk management solutions, expanded its Avetta One™ Platform with a powerful sustainability and Environmental, Social and Governance (ESG) risk mitigation solution that allows companies to reach their sustainability and ESG goals faster and with more confidence. With the new capabilities, the solution provides a holistic view of ESG status across the entire supply chain. Avetta is the only supply chain company to provide an ESG scoring system that considers individual company goals and global standards in 20 industry trades.
“To become more accountable and responsible, companies are setting aggressive sustainability and ESG goals,” said Arshad Matin, president and CEO of Avetta. “Now comes the hard part—delivering on these promises. With this solution, boards and executives now have a unified view across their companies and suppliers to manage risk and improve compliance.”
Reducing Risk While Achieving Compliance Goals
For multinationals, up to 90% of their environmental footprint is in the supply chain. But most companies do not have the visibility into sustainability readiness and goals of each supplier. This situation increases the risks of unknowingly taking on unethical work practices, using protected resources and contributing to global climate change, leading to potential regulatory penalties, civil and criminal liability, and brand and reputation damage.
Avetta’s sustainability and ESG solution solves this challenge by providing suppliers with analytics, sustainability ratings and maturity scores based on specific ESG standards and goals, such as Value Reporting Foundation (VRF – formerly SASB), Global Reporting Initiative (GRI), and Sustainable Development Goals (SDG). Key features of the solution that help companies to simplify their ESG compliance include:
- Scoring ESG maturity: Avetta calculates an ESG Index that characterises supplier levels of awareness and understanding by measuring ESG compliance across a range of global and specific company standards in 20 industries. To create these measures, Avetta provides analytics reports to help organisations determine which suppliers apply to which ESG requirements, based on company goals, multiple standards and codes of conduct. Suppliers are then guided through the registration process and evaluation completion based on their maturity levels.
- Accurately measure and remediate ESG compliance: A scorecard shows the status and progress toward improvement. These capabilities enable companies to accurately measure and quickly remediate ESG compliance issues, reducing immediate risks while more quickly achieving long-term goals. Clients can then collaborate with suppliers to remediate gaps. The platform helps them optimize resource allocation, enable stakeholder awareness and source new suppliers from the network.
- Enable data-driven decisions: Avetta’s platform leverages detailed analytics to target areas of concern, highlight achievements, and facilitate better corporate reporting and ongoing development of ESG and sustainability performance.
In upcoming months, partners in the Avetta Marketplace will be added to assist suppliers with increasing their ESG performance. Available in the first quarter, Avetta is adding Sustain.Life as an Avetta Marketplace Partner, offering suppliers an affordable and effective solution to swiftly improve their sustainability performance—no matter the level of their experience. With Sustain.Life, companies can calculate and track their carbon emissions for free and utilize expert guidance and tools to reduce those emissions.
Data analytics dashboards provide simple, succinct reports to identify gaps and make specific action plans. Analytics reports give customers an unprecedented view of their supply chain through multi-risk analytics, supplier risk trends and supplier performance benchmarking. The platform uses almost two decades of data from millions of collected data points to provide real-time views on risks and delivers alerts on deviations from baseline measures. The analytics software includes customizable, interactive dashboards to gain insights that improve supply chain measures.
According to McKinsey & Company, organisations that fulfill ESG criteria see an overall cost reduction of up to 10%. In addition, ESG-focused management hedges against possible risk factors surrounding regulations and policy changes. Members on the Avetta One platform outperform industry standards and also reduce administrative expenses on average by 75%.
CIPS Conference Introduction
Avetta executives will discuss Avetta One and how to implement sustainability throughout the supply chain at the CIPS/ANZ Conference in Sydney. The discussion will address the following topics:
- How to set clear supply chain sustainability targets to report progress
- Implement ESG supply chain requirements through formal contracts
- Establishing adequate governance structures and creating incentives to improve supply chain performance
“Suppliers using Avetta One can showcase their maturity in the ESG space, making them reliable partners to work with, as well as discoverable and attractive to clients from a financial investment standpoint,” said Adam Boyle, Avetta SVP APAC and Workforce.
Boyle, Scott Spencer, Avetta SVP Strategic Accounts, and Patrick Higgins, Principal, PSCM Advisory for Avetta, will speak at CIPS on March 15 at 14:35. All sessions will be streamed.
See related article: WuXi Biologics Recognized as 2022 Top-Rated ESG Company by Sustainalytics
Single Platform to Manage Multiple Areas of Supply Chain Risk
The Avetta One Platform is the industry’s largest and most comprehensive supply chain risk management platform. The platform delivers a unified view of supply chain risks across safety and health, liability, workforce management, sustainability and ESG, diversity and inclusion, financial viability and cybersecurity. Avetta One also helps suppliers by quickly quantifying their compliance ratings and benefits workers by offering a central workforce portal to digitally store required job roles, training, competencies and certifications.
The solution is available today for all Avetta One customers. To learn more, visit https://avetta.com/avetta-sustainability-esg.