The relationship between ESG and supply chain due diligence
However, corporations also recognise another angle—that the ESG misdeeds of the suppliers, representatives and partners they do business with might present a risk to them, by association. The impact of such third-party misdeeds could cause significant damage to brand reputation, share price and even sales.
How to develop an ESG risk framework to mitigate third-party risk
In order to know how to screen and monitor these third-party relationships, you need to know what those potential ESG misdeeds are or what bad ESG looks like, if you will.
smartEYE’s ESG framework, which serves as a guide for our third-party risk monitoring product, smartEYE determines the specific transgressions that should be monitored for. And behind each of these risk concepts is a granular set of subcategories including synonyms, colloquialisms and a myriad of language permutations.
We don’t claim that is the definitive classification of ESG risk types. In fact, we would welcome a conversation on how it can be improved. However, when combined with the precision of our multilingual search and content processing technology, for example Russian, Chinese, and Arabic, smartEYE delivers third-party ESG risk alerts in real time, representing a powerful ally in the effort to maintain corporate wellbeing.
To see what 24/7 third-party risk vigilance looks like in action, please schedule a demo.
