A new analysis of ESG data from more than 34,000 contractors and suppliers
DALLAS–(BUSINESS WIRE)–ISN, the global leader in contractor and supplier information management, released its 2024 Environmental, Social & Governance (ESG) White Paper. To address the challenges and complexities of managing ESG risk in the value chain, ISN leveraged data from its ESG Assure® offering to identify current trends, practices and areas of opportunity to drive sustainability initiatives.
In this White Paper, responses from more than 34,000 contractors and suppliers across a broad range of industries were analyzed, including Construction, Manufacturing, Utilities and Mining, Quarrying and Oil & Gas Extraction.
“Amid mounting regulatory requirements and pressure from investors, industry peers and consumers, companies are increasingly turning to data to help identify strengths and weaknesses in their current ESG management processes,” said Rick Dorsett, Vice President of Health, Safety, Environmental, Sustainability, Insurance and Risk Management at ISN. “Through our ESG White Paper and many other ESG education initiatives, we are proud to play an integral role in providing data-driven insights and best practice sharing across industries. With a 60% increase in Hiring Client usage of our ESG Assure offering in 2023, it’s clear the demand for greater value chain transparency remains strong, with organizations around the globe working to make their operations as sustainable as possible.”
At its core, ESG is a framework to help inform a company’s stakeholders on risks and opportunities related to the holistic approach to sustainable performance.
Highlights from the 2024 ESG White Paper include:
Environmental
- Greenhouse Gas Emissions: Sixteen percent of companies indicate having strategies for greenhouse gas reduction in place, and nearly 18% are calculating and reporting both Scope 1 & 2 Emissions data.
- Environmental Management Systems (EMS): On average, 45% of companies reported implementing an EMS, with companies in Mining, Oil & Gas Extraction, Utilities and Transportation & Warehousing being more likely to have a management system in place.
Social
- Forced Labor Policies: Thirty-five percent of companies indicate policies condemning Forced Labor Practices are in place, with over half (53%) providing general training on labor rights for their workforces. These policies are most likely to be implemented in Utilities, Manufacturing and Wholesale Trade industries.
- Modern Slavery Policies: Forty percent of companies have a Human Rights policy in place, with 34% indicating training is provided. Human Rights policies are more commonly implemented in the Utilities, Mining & Oil and Gas Extraction, and Transportation & Warehousing industries.
- Subcontractor and Supplier Screening: To best address and mitigate risk, screening for “social” criteria must extend beyond the first-tier contractor or supplier. Thirty-five percent of companies indicate they include social criteria during the prequalification and screening process for subcontractors and suppliers, while 42% have a vendor code of conduct in place.
Governance
- Anti-Corruption: Nearly 70% of companies indicate an anti-corruption policy is in place and 50% provide training on anti-corruption. Without such policies, corruption can pose significant risks to business growth.
- Company Codes of Conduct: Among all responding contractors and suppliers, 81% indicate they have a Company Code of Conduct in place – a necessary tool that lays the groundwork to prevent legal or regulatory violations.
“Working with diverse and small businesses is an effective way to add value to companies and communities, furthering an organization’s commitment to social responsibility,” said Rick Dorsett. “Diversifying a supply chain also increases opportunities for businesses to expand their markets. Many of ISN’s contractors and suppliers reported a diverse owned status, defined as being at least 51% owned, operated and controlled by a minority designation.”
To view additional insights, download a copy of the ESG White Paper. For more information on ISN’s industry-leading software and services, visit https://www.isnetworld.com.
About ISN
ISN is the global leader in contractor and supplier information management, with more than 20 years of experience connecting more than 800 Hiring Clients in capital-intensive industries with 80,000+ active contractors and suppliers to promote safety, health and sustainability in the workplace. ISN’s brands include ISNetworld®, a global online contractor and supplier management platform that helps capital-intensive industries connect with safe reliable contractors, Transparency-One®, a responsible sourcing platform built to bring transparency to supply chain management, and Empower®, a mobile app focused on individual workers built to keep them and their work moving forward. ISN collects health and safety, procurement, insurance, quality, supply chain, sourcing and regulatory information from contractors and suppliers and incorporates a level of due diligence to the supply chain management process through ISN’s Review and Verification Services (RAVS) subject matter experts who review and verify contractor and supplier information.
ISN has 14 offices around the globe which provide award-winning support and training for its customers in more than 85 countries. ISN takes pride in leading worldwide efforts to improve the efficiency and effectiveness of contractor and supplier management systems and in serving as a world-class forum for sharing industry best practices, benchmarking performance, providing data insights among its members and helping decision makers, including board members, ensure contractor and supplier risk is assessed and monitored. For more information, visit http://www.isn.com.
Contacts
Media Contact
Taylor Odekirk
Walker Sands for ISN
