Understanding Sustainability Assessments

About Sustainability Assessments

Understanding sustainability is crucial to ensuring resilient supply chains. SupplierGATEWAY has partnered with SupplyShift® to take the guesswork out of sustainability reporting and help you uncover how responsible and sustainable your supply chain truly is.

The Sustainability App in the SupplierGATEWAY system provides you with the capability to request sustainability assessments from your suppliers.  All assessments are scored out of 100 possible points. The summary below is a quick overview of how to interpret the results.
 

Supplier ESG Assessment

The Supplier ESG Assessment is a basic assessment of a company’s environmental, social, and governance policies and practices to help your organization better understand risk and help improve the social and environmental conditions that exist within your supply chain. The Supplier ESG Assessment covers all relevant risk and sustainability topics.

Rating Name: ESG Commitment & Risk Level

Description: The “ESG Commitment & Risk” Score gives you an overview of the embedment of ESG in the supplier’s organizational structure. The rating is based on SupplyShift’s comprehensive Supplier ESG Assessment, a self-assessment that covers the following topics: Governance, ESG Commitments & Actions, Social / Labor Policies & Initiatives, Workforce, Occupational Health & Safety, Environmental Policies & Initiatives, and Supply Chain Management. 

Green: High ESG Commitment: 66-100 points

A rating of “High ESG Commitment” means that the supplier has embedded ESG in a wide range of their organizational structure. There may still be areas to improve, but the presence of multiple ESG areas lowers the risks to your organization. 

Yellow: Medium ESG Commitment: 33-65 points

A rating of “Medium ESG Commitment” means that some ESG areas are embedded in the supplier’s organization already, while they still need to improve in others. By presenting a medium level of risk to your organization, a supplier with a Medium ESG Commitment rating warrants further attention for improvement. 

Red: Low ESG Commitment: 0-32 points

A rating of “Low ESG Commitment” means that ESG is not yet sufficiently embedded in the organization of the supplier. A supplier with a Low ESG Commitment rating presents risks to your organization. 

GHG Leadership & Reporting

The GHG Leadership and Reporting Assessment helps your organization understand which suppliers are actively reducing GHG emissions and climate risk. This assessment looks at a supplier’s overall carbon emissions, how accurately a supplier measures, tracks, and reports their carbon footprint, what the supplier is doing to reduce GHG emissions, and whether the supplier has programs that can support ongoing GHG mitigation programs and emissions management.

Rating Name: GHG Leadership

Description: The “GHG Leadership & Reporting” Score gives you an overview of the supplier’s commitments and progress on measuring and reducing greenhouse gasses (GHGs). The rating is based on SupplyShift’s comprehensive GHG Leadership Assessment, a self-assessment that covers the following topics: Emissions Methodology, Emissions Data, Targets & Progress, Verification & Disclosure, Management & Governance, Low Carbon Offers, and Value Chain Engagement. 

Green: High GHG Performance: 66-100 points

A rating of “High GHG Performance” means that the supplier is measuring their emissions, has set science-based reduction targets, and is taking significant action to make progress to meet those targets. 

Yellow: Average GHG Performance: 33-65 points

A rating of “Average GHG Performance” means that the supplier is measuring their emissions, has taken initial steps on GHG disclosure and reductions, and at a minimum is planning to set a GHG reduction target in the next two years. 

Red: Low GHG Performance: 0-32 points

A rating of “Low GHG Performance” means that the supplier is not yet fully measuring their emissions, has not taken initial steps to disclose or reduce, and does not have a plan to set targets in the next two years. 

Supplier Diversity, Equity and Inclusion

Champion a diverse, equitable, and inclusive (DEI) supply chain by better understanding your supplier’s DEI initiatives. Armed with insights into existing DEI commitment statements or policies, which suppliers have a diverse supplier status, and a supplier DEI program that promotes diversity in their supply chain, your organization can then decide how to strategically engage with suppliers regarding DEI. 

Rating Name: Diversity, Equity and Inclusion Commitment

Description: The “Diversity, Equity and Inclusion Commitment” Score gives you an overview of the supplier’s commitments and progress on diversity, equity and inclusion. The rating is based on SupplyShift’s comprehensive Supplier Diversity, Equity and Inclusion Assessment, a self-assessment that covers the following topics: Company Diversity Information, DEI Strategy & Processes, and Supply Chain Diversity & Inclusion. 

Green: High DEI Commitment & High Supplier Diversity: 66-100 points

A rating of “High DEI Commitment & High Supplier Diversity” means the supplier has attained a diverse supplier status, and has a supplier diversity and inclusion program that promotes diversity in its supply chain. 

Yellow: Medium DEI Commitment & Some Initiatives: 33-65 points

A rating of “Medium DEI Commitment & Some Initiatives” means the supplier at least has a written diversity, equity and inclusion commitment statement or policy. There is room for further investment in DEI initiatives and commitments.

Red: Low DEI Commitment & Few Initiatives: 0-32 points

A rating of “Low DEI Commitment & Few Initiatives” means that the supplier has made little effort on embedding diversity, equity and inclusion in their organization. If the supplier has a value statement, diversity, equity and inclusion is not included in it. 

Human Rights Compliance Assessment

The Human Rights Compliance Assessment helps you understand the full scope of labor practices within your supply chain, so you can drive improvement with suppliers that don’t meet your labor standards. Instead of just meeting your reporting requirement, you’ll access valuable supplier data, engage with suppliers, and drive meaningful progress toward the elimination of modern slavery and human rights abuses in your supply chain.

Rating Name: Human Rights Risk

Description: The “Human Rights Risk” score gives you an overview of the supplier’s commitment to best practice in human rights due diligence, including compliance with various self-assessment requirements of global human rights legislation. The rating is based on SupplyShift’s comprehensive Human Rights Compliance Assessment that covers the following topics: Governance, Social / Labor Policies and Initiatives, Internal Risk Assessment, Grievance Mechanisms, Employee Training, Supply Chain Risk Management, Audits, Certification for Direct Suppliers, Recruitment, Occupational Health and Safety, Environment.

Green: Low Human Rights Risk: 66-100 points

A rating of “low human rights risk” means the supplier has set robust policies pertaining to human rights due diligence. They engage in best practices established by the United Nations and global legislation to protect the human rights of workers in their supply chain. 

Yellow: Moderate Human Rights Risk: 33-65 points

A rating of “moderate human rights risk” means that there is room for improvement in following best practices for the protection of the human rights of workers in their supply chain. A supplier with a moderate human rights risk rating may present some risk to your organization.

Red: High Human Rights Risk: 0-32 points

A rating of “high human rights risk” means the supplier has made little effort on setting human rights policies and is doing little to engage in best practices to protect the human rights of workers in their supply chain. A supplier with a high human rights risk rating presents risks to your organization.