Australia’s largest private rail freight operator Pacific National has partnered with supply chain risk management platform Avetta to support its Procurement and ESG strategy.
With up to 90% of their environmental footprint is in the supply chain for multinationals, Pacific National is leveraging Avetta to simplify supplier ESG compliance, Business Wire reports.
Avetta’s sustainability and ESG solution provides analytics, sustainability ratings and maturity scores based on specific ESG standards and goals, such as Value Reporting Foundation (VRF – formerly SASB), Global Reporting Initiative (GRI), and Sustainable Development Goals (SDG).
Greater visibility in supply chain is becoming a staple of measuring ESG initiatives.
A lack of visibility increases the risks of exposure to unethical work practices by suppliers, using protected resources and contributing to global climate change. These risks could incur penalties and reputational damage.
“We’re excited to partner with Avetta to build on our supplier commitments to support our three pillars of ESG: emphasising social responsibility in our communities, minimising our environmental impact and protecting the health and safety of our employees throughout our supply base,” said Zelda Pretorius-Kovacs, Pacific National Head of Procurement told Business Wire.
Avetta serves 500+ enterprise companies and 125,000+ suppliers across 120+ countries.
Organisations which meet ESG criteria see an overall cost reduction of up to 10%, according to McKinsey & Company.
Avetta scores ESG maturity calculating an ESG Index characterising supplier levels of awareness and understanding by measuring ESG compliance across a range of global and specific company standards in 20 industries.
The technology uses analytics to help organisations determine which suppliers apply to which ESG requirements. Suppliers complete an evaluation based on their maturity levels. Other features include compliance scorecards to reduce risk and remediate gaps and data analytics for reporting and performance measurement.
