According to talkinglogistics.com, a recent research report commissioned by Infor and conducted by Adelante SCM found that 52% of supply chain and logistics executives from manufacturing, retail, and distribution companies rate ESG compliance as either a low priority (33%) or not a current priority (19%). Only 4% consider it a very high priority today.
Regulatory Pressure Mounting Globally
Supply chain leaders face intensifying demands from new regulations including the EU’s Corporate Sustainability Reporting Directive (CSRD), the U.S. Uyghur Forced Labor Prevention Act (UFLPA), and the European Union Deforestation Regulation (EUDR). These mandates require end-to-end transparency across supplier tiers — yet most firms lack foundational visibility beyond their immediate partners.
Limited Visibility Beyond Tier 1
When asked about ESG data visibility, 44% of respondents reported visibility only up to Tier 1 suppliers; another 30% confirmed they have no structured visibility at all. Few organizations can assess ESG risks deeper in the network — where forced labor, deforestation, or emissions hotspots are most likely to occur.
- One executive noted the structural barriers: “Some of the biggest challenges for us are the costs for securing the data needed to understand the true picture of our ESG compliance beyond Tier 1 — and the unwillingness of our suppliers to share that data. We are an SMB with limited leverage to acquire that data from our suppliers.”
“This is not a current priority for our organization due to staffing, costs, ROI/payback, requirements, and needs. As our customers demand more information, we will eventually be forced into further action in this area.” — Supply chain executive, Indago research community
This reactive posture reflects broader industry dynamics: ESG compliance remains largely driven by external pressure rather than internal strategic commitment. While large enterprises increasingly invest in supplier scorecards, blockchain traceability pilots, and third-party audit programs, SMEs cite resource constraints and supplier resistance as primary blockers. Notably, similar visibility gaps were documented in Gartner’s 2023 Supply Chain Resilience Survey, where 68% of midsize firms reported no formal process for collecting Tier 2+ ESG data. Meanwhile, Maersk and Nestlé have publicly disclosed multi-year initiatives to map Tier 2–3 suppliers using digital platforms — underscoring the growing feasibility of deeper traceability for those with scale and procurement leverage.
Source: talkinglogistics.com
Compiled from international media by the SCI.AI editorial team.
