61% of businesses have no access to their suppliers' ESG data: survey

Due to the lack of access, businesses are not able to assess ESG risk and compliance accurately.

More than half (61%) of businesses in Singapore have no access to their supplier's ESG data, which prevents them from accurately assessing their ESG risk and compliance, new research by Coupa Software has found.

Due to limited access, 64% of businesses can only assess ESG risk and compliance of their third party-suppliers (Tier 1) to some degree, whilst 8% can't accurately assess it at all. 

Meanwhile, about 70% of businesses surveyed said they can only assess their Tier 2 suppliers, or the suppliers of their third-party suppliers  "to some degree" or not at all.

"No business can fully realise their ESG goals and make a meaningful difference if they do not possess accurate and timely data on which to make decisions,” said Donna Wilczek, senior vice president of product innovation and strategy at Coupa.

Steve Banker, vice president of supply chain services at ARC Advisory Group, said "quicker access to supplier information can aid supply chain planning and help businesses better respond when disruption arises.

However, the study showed that three in five businesses lack access to data that can speed their response to these disruptions.

To address the existing data gaps, all of the Singaporean businesses surveyed agreed that ESG suppliers should be shared "openly and instantaneously with prospective buyers."

"With this type of data collaboration, organisations can confidently make choices that reduce costs and carbon, as well as risk,” Banker said.