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Australian Energy Producers Journal Australian Energy Producers Journal Society
Journal of Australian Energy Producers
RESEARCH ARTICLE (Non peer reviewed)

Global focus on ESG in the supply chain – insights into supply chain management of Environmental, Social and Governance requirements and trends both locally and globally

David Bibby A *
+ Author Affiliations
- Author Affiliations

A ISN Software UK Ltd, London, UK.




David Bibby is a Senior Director at ISN. In this role he leads ISN’s operations across the EMEA region helping customers reduce risk and increase 3rd party due diligence, based in London. He is also ISN’s executive sponsor for ESG/Sustainability product development. He has over 20 years of EHS and ESG experience, including several years as a regulator with the Health and Safety Executive (HSE). He has wide-ranging experience in several industries including oil & gas, petrochemical, manufacturing, construction and services. He holds a BA Honours degree in geography from Swansea University and a post-graduate diploma in health and safety from Warwick University. In addition, he is a Chartered Member of the Institute of Occupational Safety and Health (CMIOSH) and a certified European Occupational Safety and Health Manager (EurOSHM). In December 2022 David was named a finalist in the SHP Trailblazer ESG award.

* Correspondence to: dbibby@isn.com

Australian Energy Producers Journal 64 S468-S471 https://doi.org/10.1071/EP23100
Accepted: 14 March 2024  Published: 16 May 2024

© 2024 The Author(s) (or their employer(s)). Published by CSIRO Publishing on behalf of Australian Energy Producers.

Abstract

In our increasingly interconnected world, responsible business operation has become a normal, critical part of doing business for virtually all industries. Consumers, investors, and other company stakeholders are demanding businesses take responsibility for their current and future impacts on people and the environment. When assessing the role corporations play in a more sustainable future, many turn their focus to Environmental, Social and Governance (ESG) factors that help define and measure sustainable business. Given the wide variety of topics encompassed in ESG, companies often identify which are material, or prioritised by company stakeholders. Quantitative and qualitative information for material ESG topics is often reported using a standard or framework such as the Task Force on Climate-related Financial Disclosures; Taskforce on Nature-related Financial Disclosures; Sustainability Accounting Standards Board; the Global Reporting Initiative and the Carbon Disclosure Project (CDP), along with other region-specific standards. One reporting challenge includes extending ESG strategies and data collection to a company’s value chain. By including ESG-related requirements in service contracts or pre-qualification metrics, expectations can be clearly communicated and data aggregation becomes simpler. Engaging with vendors on the importance of material topics and providing educational tools and opportunities is necessary for accurate data collection. Benchmarking companies against their peers allows organisations to make informed decisions to continue or halt business relationships. Every company’s approach to ESG will look different, but protecting the business’s reputation and customer expectations is critical to continuous operations. Outcomes: understanding different components of ESG. Recognition of the types of reporting disclosure frameworks. Best practices with contractors and suppliers.

Keywords: climate change, contractors, disclosure, environmental, ESG, Global Reporting Initiative, governance, qualification, social, suppliers, supply chain.

Biographies

EP23100_B1.gif

David Bibby is a Senior Director at ISN. In this role he leads ISN’s operations across the EMEA region helping customers reduce risk and increase 3rd party due diligence, based in London. He is also ISN’s executive sponsor for ESG/Sustainability product development. He has over 20 years of EHS and ESG experience, including several years as a regulator with the Health and Safety Executive (HSE). He has wide-ranging experience in several industries including oil & gas, petrochemical, manufacturing, construction and services. He holds a BA Honours degree in geography from Swansea University and a post-graduate diploma in health and safety from Warwick University. In addition, he is a Chartered Member of the Institute of Occupational Safety and Health (CMIOSH) and a certified European Occupational Safety and Health Manager (EurOSHM). In December 2022 David was named a finalist in the SHP Trailblazer ESG award.

References

Brody A (2023) 4 Ways Supply Chains Can Account for ESG Risks. Supply & Demand Chain Executive Article. Available at https://www.sdcexec.com/sustainability/waste-reduction/article/22670851/riskonnect-4-ways-supply-chain-can-account-for-esg-risks

ILO (2022) Global Estimates of Modern Slavery: Forced Labour and Forced Marriage. Report. Available at https://www.ilo.org/global/topics/forced-labour/publications/WCMS_854733/lang--en/index.htm

Peterdy K (2023) ESG (Environmental and Social Governance). Corporate Finance Institute Article. Available at https://corporatefinanceinstitute.com/resources/esg/esg-environmental-social-governance/

Rebirth Analytics (2020) New study reveals minority-owned suppliers show greater financial stability, resiliency than non minority-owned businesses. Press release. Available at https://www.globenewswire.com/news-release/2020/09/08/2090381/0/en/New-study-reveals-minority-owned-suppliers-show-greater-financial-stability-resiliency-than-non-minority-owned-businesses.html