Businesses worldwide seek more transparency in ESG data,
according to new Coupa study
SAN
MATEO, Calif., March 31,
2022 /PRNewswire/ -- The availability and reliability
of crucial supply chain data is preventing organizations from
operationalizing their corporate purpose and meeting their
environmental, social, and governance (ESG) goals, according to new
research from Coupa Software (NASDAQ: COUP), a leader in Business
Spend Management (BSM).
Coupa's research confirmed businesses want to improve ESG
practices and reduce risk exposure, including: improving energy
efficiency (94%); reducing greenhouse gas emissions (91%);
eliminating modern slavery (89%); improving supply chain diversity
(89%); and reducing deforestation (87%).
However, this research also points to a lack of sufficient
visibility into supply chain data and inadequate technology for
businesses to fully realize ESG targets.
- Nearly all (97%) businesses agree that accurate ESG data of
their suppliers is important to understand supplier risk.
- A majority (53%) did not fully agree that data on their
suppliers' ESG credentials is sufficiently
available.
- Nearly two-thirds (65%) said they do not have strong enough
technology capabilities to assess ESG risk and compliance of both
Tier 1 (third-party suppliers) and Tier 2 suppliers (the suppliers
of their third-party suppliers).
- Practically all (95%) wish to speed up responses to external
disruptive events, yet more than two-thirds (71%) lack access to
data that enables this type of agility and said it would take weeks
to months to find new suppliers that meet their ESG standards.
"Even with all the will in the world, no business can fully
realize their ESG goals and make a meaningful difference if they do
not possess accurate and timely data on which to make decisions,"
said Donna Wilczek, senior vice
president of product innovation and strategy at Coupa.
Overcoming the Data Problem: A
Defense Against Disruption
There are ways to overcome companies' ESG data gaps, with
Coupa's research finding businesses calling for greater
industry-wide data sharing and collaboration:
- 99% agree that, if key ESG supplier data were shared openly and
instantaneously with prospective buyers, it would help them more
accurately assess their ESG risk and compliance.
- 97% agree that greater cooperation on key ESG data is needed
between businesses and suppliers.
"Organizations are rightly making ESG a priority and have begun
to make changes to their supply chains to become more sustainable.
While many are still early in their journey and marching towards
net zero goals, it's clear that quicker access to supplier
information can aid supply chain planning and help businesses
better respond when disruption arises. With this type of data
collaboration, organizations can confidently make choices that
reduce costs and carbon, as well as risk," said Steve Banker, vice president of supply chain
services at ARC Advisory Group.
"It's reassuring to know that Coupa's research also found more
than two-thirds (64%) of businesses plan to invest in new
technology to help them achieve ESG goals," Wilczek added.
"However, if they truly want to operationalize their ESG strategy
and corporate purpose, they need transparency technologies that go
beyond mere reporting, and enable buyers and suppliers to
collaborate and exchange data as a community for a common
cause."
To learn more, check out the full research report: How To
Mitigate ESG Risk In Your Supply Chain.
Survey Methodology
The survey was conducted among 800 decision makers who have an
overview of, or responsibility for, the supply chain in businesses
with 1,000+ employees across Australia, France, Germany, Singapore, the U.K., and the U.S. Interviews
were conducted by Sapio Research in February
2022 using an email invitation and an online survey.
About Coupa
Coupa is the cloud-based Business Spend Management (BSM)
platform that unifies processes across supply chain, procurement,
and finance functions. Coupa empowers organizations around the
world to maximize value and operationalize purpose through their
business spend. To learn more about Coupa, visit www.coupa.com or
follow us on LinkedIn or Twitter.
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SOURCE Coupa Software