Sedex & the Importance of Data in Sustainable Supply Chains
Transparency has never been more important for businesses with global supply chains.
Historically, understanding the complexities of corporate supply chains was challenging, limiting the ability to enact change.
In this corporate climate, companies find themselves under scrutiny from regulators, investors, customers, stakeholders and employees, with each group demanding more sustainable supply chain practices.
Aligning with regulations like the EU's CSRD or the UK’s Modern Slavery Act all depends on how companies monitor, measure and manage sustainability within their supply networks.
Without precise data this can be an impossible task. The hard truth is that many enterprises are still struggling to collect comprehensive data across their value chains, which often limits their insights.
“When companies collect due diligence data only at the corporate headquarters level, they’re often seeing just the tip of the iceberg,” says Tomas Novotny, Sustainability Expert at Sedex.
“While HQ-level data might paint a reassuring picture, it frequently conceals site-specific issues that could pose material risks to your business.”
This gap presents a challenge for enterprises aiming to achieve ambitious decarbonisation initiatives, as supply chain emissions form the bulk of most companies' carbon footprints.
The challenge of data collection
More and more, customers and stakeholders are demanding verifiable information on the supply chain impacts of global companies.
A lack of thorough supply chain data can lead to oversight, culminating in regulatory penalties or harm to reputational standing.
Sedex is one company trying to address this issue head on, guiding businesses through the complexities of supply chain transparency.
The London-based organisation distinguishes itself from other data insights firms by focusing on granular, site-level data collection.
It's an approach embedded in its SMETA audit programme and self-assessment mechanisms that offer enterprise teams insights into specific supplier site conditions.
For more than two decades now, Sedex has compiled site-level data, contrasting with many others that focus on broader corporate assessments.
Its comprehensive database spans more than 115,000 supplier sites globally, providing businesses with the detailed visibility necessary to navigate supply chain complexities successfully.
Audrey Clavedon, Sedex’s Head of ESG Leadership, Policy, and Consulting, explains the pivotal role of supply chains in sustainability advancements.
“Sustainability is actually all about power, and the good news is that supply chains are very powerful,” she says.
What are the advantages of site-level data collection?
Key benefits of site-level data include the ability for procurement teams to hone in on specific high-risk supplier sites instead of generic blanket audits.
By targeting assessments strategically, companies can diminish unnecessary audit processes and elevate the overall efficiency of their due diligence approaches.
This data-centric strategy not only mitigates audit fatigue but also empowers organisations to benchmark different supplier locations, fostering an environment of continuous improvement and sustainability benchmark achievement across the supply chain.
According to Elisa Molero, an ESG & Sustainability Industry Analyst at Verdantix, accessing high-quality data that improves supply chain flexibility remains a “top priority for 63% of firms”.
The competitive edge
As regulatory pressures and expectations from stakeholders grow, having in-depth insights into supply chain operations is anticipated to become vitally important.
“The shift toward greater transparency is inevitable," Tomas explains.
"Companies that embrace site-level sustainability data now will gain a significant competitive advantage in risk management, compliance readiness, and value creation.
"While those who continue to rely on headquarters-level aggregates risk being blindsided by hidden issues lurking within their supply chains.”
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