Client Snapshot
As ESG reporting expectations continue to mature, companies are increasingly expected to demonstrate not only the strength of their own sustainability practices, but also visibility into the practices of their value chain partners (VCPs). Building this visibility requires VCPs to understand what ESG data is expected of them, why it matters, and how to compile and share it in a usable form, a capability that is often missing altogether in smaller and less organized partner networks.
This case study relates to a manufacturing company whose value chain partners were spread across multiple geographies and varied widely in size, maturity, and awareness of ESG concepts. The company engaged us to build the capacity of its VCPs to understand and report ESG-related disclosures, so that reliable data could be sourced from them for inclusion in the company’s Sustainability Report.
The Challenge
- A large and varied base of value chain partners, ranging from small to large and spread across multiple geographies, made consistent engagement difficult
- Language barriers across VCPs located in different regions added complexity to training and data collection
- Most VCPs, particularly smaller ones, lacked structured ESG practices and were largely unorganized in how they maintained relevant records
- Many VCPs had limited awareness of ESG concepts and their relevance to their own business, making it difficult for them to understand what data was being requested and why it mattered
- Skill gaps within VCP workforces made it difficult for them to interpret ESG requirements and compile the requested information accurately
- No established processes existed at most VCPs for the ongoing availability and collection of ESG-related data
- Cost and resource constraints, especially among smaller VCPs, limited their ability to invest in ESG data systems and dedicated personnel
- These factors collectively affected the completeness, reliability, and transparency of ESG information flowing up to the company
Our Approach
- Conducted zone-wise training sessions, tailored to VCPs in different regions, to overcome language barriers and ensure VCPs could engage with the material in a manner relevant to their location
- Helped VCPs understand the purpose behind the data requests, explaining how ESG disclosures work and their relevance, so that reporting was seen as a shared exercise rather than a compliance burden
- Highlighted the benefits for VCPs of strengthening their own ESG practices, including improved reputation, better access to capital, long-term value creation, and gains in operational efficiency
- Provided standardized, easy-to-use checklists for VCPs to compile and share their ESG data, enabling consistency and comparability of the information received
- Advised VCPs on maintaining the documents and records required to support their ESG disclosures on an ongoing basis
- Encouraged VCPs to observe and learn from the ESG practices followed by their peers, to build awareness and drive gradual improvement
- Prioritized engagement with high-value VCPs, targeting coverage of approximately 75% of value chain spend through this focused group
- Carried out a data audit of the information reported by VCPs, including site visits conducted on a test-check basis, to corroborate the reliability of the data received
Results Delivered
- Improved ESG awareness and capability among the company’s value chain partners across geographies and sizes
- Overcame language barriers through zone-wise training, enabling more effective engagement with VCPs across different regions
- Enhanced the consistency and comparability of ESG data received from VCPs through standardized checklists
- Achieved focused, resource-efficient coverage by prioritizing high-value VCPs representing around 75% of value chain spend
- Strengthened the reliability of VCP-reported data through a structured data audit and test-check site visits
- Enabled VCPs to appreciate the relevance of ESG reporting to their own business, supporting better documentation and record-keeping practices going forward
- Supported the company in sourcing more credible and usable ESG data from its value chain for its Sustainability Report
Impact
The engagement reflects a challenge increasingly faced by companies with large and diverse value chains: building ESG awareness and reporting capability among partners who differ widely in size, maturity, and location, and who are often held back by language barriers, skill gaps, and resource constraints. By training VCPs zone-wise, helping them understand the relevance of ESG data to their own long-term value creation, and equipping them with standardized checklists, the company was able to secure more consistent and comparable data from its partner base. Focusing this effort on high-value VCPs and corroborating the data received through audits and test-check site visits further strengthened the reliability of the information gathered, supporting more credible ESG disclosures and reinforcing stakeholder confidence in the company’s Sustainability Report.
