By now it should be clear that a lot of things need to change if we want to avoid a climate emergency and all the downstream effects it will bring with it. And since these downstream effects will also affect businesses, the responsibility to take action lies on everyone’s shoulders. Governments and institutions are rolling out more and more regulations for sustainability measures such as the CSRD by the European Commission, and organisations are required to implement these. This is often easier said than done.
At Esker, we embarked on an ESG journey a few years ago and have, in the meantime, implemented several policies to reduce our carbon footprint. One factor remained difficult to gauge, however: the supplier side. In France, for example Esker requests its suppliers to sign a Code of Conduct, which addresses the main ESG aspects such as corruption, fair labour practices and environmental considerations. For our own ESG performance data, however, it was challenging to quantify the impact the procurement side of our operations had.
Since we’re not alone in this dilemma, we decided to make it easier to track a supplier’s ESG performance indicators, not just for ourselves, but also for our customers. Esker Supplier Management now displays risk rating panes that indicate downgraded or upgraded ESG scores, which allows you to verify that ESG standards are met before engaging with a new supplier. It also enables continuous tracking of the ESG score in real time, so that you can rest assured that your supply chain meets the defined standards.
Starting in 2024, the EU’s Corporate Sustainability Reporting Directive (CSRD) requires mandatory reporting of ESG metrics for a number of European businesses. To prepare for these requirements, Esker developed AI-supported capabilities that extract energy consumption from utility bills and travel expenses. This feature will make meeting the reporting requirements much easier.
The recent Forrester report “The Environmental Sustainability Procurement Technology Landscape, Q3 2023” gives clarifying insights into how to work with vendors of solutions that are meant to track an organisation’s carbon footprint. We are excited to be mentioned as a Notable Vendor. The features in Esker Supplier Management assist in reducing the complexity of ESG reporting and in managing compliance with ESG regulations, of which many more are expected to be implemented in the near future. We are happy to be considered part of the solution for the huge challenge that humanity is facing.
Feel free to contact us! We’d be happy to discuss all things ESG with you, and help you figure out how Esker can help.