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

Comment Constituency Region Reporting
Relationship
Language and diversity barriers - communicating ESG is challenging with many of the local suppliers (reporting organizations
can but only do this progressively). And 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 GRI3.1,
unfortunately seems to advance this unilateral, data intensive, and compliance focused approach to supply chain engagement.
The reporting framework also seems to assume a certain kind of ‘global organisation’ and supply chain engagement and
maturity context. For a large global multinational based in a developed economy/region, their supply chain (Figure 1) is
primarily with a wide range of suppliers in developing economies and to a smaller extent in the home region (developed
economies). Due to the relative scale (buying power) and the longer duration/process in the development of their global supply
chain footprint, their global supply chain can be expected to be more mature and geographically dispersed but not necessarily
deep/multi-tiered. This presents a unique set of supply chain opportunities as compared to a global or large company based out
of a developing economy with a nascent supply chain engagement (Figure 2). It is important to recognize this when setting
guidelines for reporting boundaries (and their value/supply chains) and not ignore the history, national/regional context and
aspects of control/influence with their supply chain. The G4 reporting framework does not provide space for organizations to
explore and explain this.
Most of the additions are feasible to report but the addition of screening for social impacts is difficult to asses as there is no defined
framework to utilise for determining social impacts and what constitutes good performance.
No. Reporting on supply chain should be related to the risk supply chain poses to the company/ communities. For example, if a
company operates the the Congo, supply chain management/ reporting should be strong. However, this is not necessary in all
industries. Best practice askes multinationals to increase local hiring and procurement. In doing so, we have hundreds of vendors --
including local farmers who receive micro finance to increase agricultural yields, and our company commits to purchasing a
Mediating
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Second G4 Public Comment Period: Submissions
Document 8 of 12 – Qualitative Online Feedback: Supply Chain Disclosure
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