Report: The ESG Impact on Modern Supply Chains
The inaugural MEED-Mashreq Business Leaders Forum served as a platform to discuss the impact of ESG principles on modern supply chains
Actionable change is no longer limited to a business’ own operations. It now applies to entire supply chains and is shaping the way organisations are perceived by their internal and external stakeholders.
Governments, businesses, and investors in the UAE, and across the world are progressively turning to business models that are not just profitable, but also sustainable in the long run. This shift is now apparent – and necessary – as issues such as climate change, resource scarcity and social inequality come to the fore.
Rising to the top of the business agenda in the midst of this transition are environmental, social and governance (ESG) principles. Whether in the form of tougher regulations mandating ESG compliance, or the rising number of consumers and organisations who only want to deal with ESG-compliant businesses – ESG and its implications for supply chain management are quickly growing in relevance. It is also a priority consideration for financiers and investors.
In coming years, the need to meet the highest standards of ESG performance is expected to carry significant ramifications for buyers and their supply chains across all business sectors.
At this juncture, it is important for organisations in the UAE and the wider GCC region to introduce structural changes geared at not just adapting to these new variations, but to grow and prosper in a greener and more socially responsible world.
On 31 January 2023, the inaugural MEED-Mashreq Business Leaders Forum titled The ESG Impact on Modern Supply Chains brought together industry practioners with the intention of building insights around the role of ESG and its practical application across supply chains.
The event served as a platform for business leaders, investors and regulators to identify innovative opportunities to transform their supply chains, discussing the opportunities for companies in the UAE to introduce ESG frameworks and adopt practical measures to improve the overall financial performance of their business and more specifically their supply chains, in order to meet the evolving demands of their customers, investors and policymakers.
This report captures key conversations from the event, presenting the current state of ESG in the UAE; the implications of remaining stagnated; and considerations for corporations seeking to make the switch to more sustainable business models.