Qualitative Online Feedback: Supply Chain Disclosure - Global ...

Comment Constituency Region Reporting
Relationship
Most companies, even the larger companies - who have the necessary resources and have been publishing a GRI based report for
some time - will find the supply chain linked disclosure elements extensive, expensive to assess and premature to even start looking
at some of the indicators. Many of the new indicators on supply chain are marked CORE.
The complications in adopting this kind of directive data-intensive approach are side-stepped e.g. the fundamental nature of deep
supply chains and complexity in assessing them. Some of these are
a) Multi layered supply chain with complex dependencies of local economy and livelihoods
b) Influence is sometimes dependent on the direct revenue contribution of business relationship with the supplier c) Language and
diversity barriers - communicating ESG is challenging with many of the local suppliers (reporting organizations can but only do this
progressively).
Moreover, companies should adopt a non-enforcing enabler approach in their supply chain engagement – especially in economies
and countries where a uni-dimensional approach on ESG aspects can sometimes go against the basic human
rights (livelihood and humanitarian) principles in the absence of alternatives coming from fundamental and systemic changes in the
local economy. The GRI G4 framework, like its predecessor G3.1, unfortunately seems to advance this unilateral, data intensive, and
compliance focused approach to supply chain engagement.
Requirement for data-intensive approach does not take into consideration the nature and complexity of supply chains :-
Business Asia Report Reader
Most companies, even the larger companies - who have the necessary resources and have been publishing a GRI based report for
some time - will find the supply chain linked disclosure elements extensive, expensive to assess and premature to even start looking
at some of the indicators. Many of the new indicators on supply chain are marked CORE.
The complications in adopting this kind of directive data-intensive approach are side-stepped e.g. the fundamental nature of deep
supply chains and complexity in assessing them. Some of these are
a) Multi layered supply chain with complex dependencies of local economy and livelihoods
b) Influence is sometimes dependent on the direct revenue contribution of business relationship with the supplier c) Language and
diversity barriers - communicating ESG is challenging with many of the local suppliers (reporting organizations can but only do this
progressively).
Moreover, companies should adopt a non-enforcing enabler approach in their supply chain engagement – especially in economies
and countries where a uni-dimensional approach on ESG aspects can sometimes go against the basic human
Second G4 Public Comment Period: Submissions
Document 8 of 12 – Qualitative Online Feedback: Supply Chain Disclosure
Page 1265 of 2491