A recent report on ESG from ISN analyzed responses from more than 34,000 contractors and suppliers across a broad range of industries were analyzed, including construction, manufacturing, utilities and mining and oil & gas.
Highlights from the report 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, in a statement. “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.”
