ESG is imperative for enterprises to gain investor confidence and enhance brand positioning. Enterprises are incorporating ESG in every step of the procurement process. Procurement teams are giving higher importance to suppliers who are aligned with global ESG objectives.
Avasant’s Service Provider ESG Maturity Index 2022–2023 benchmarks service providers based on their ESG disclosures. The report aims to help enterprises make better procurement decisions in order to meet their own ESG goals. The inaugural edition features 17 service providers and classifies them based on our ESG performance benchmarking index that factors more than 50 data points across four parameters: environmental, social, governance, and ESG disclosure compliance and the UN SDGs coverage.
Based on our criteria, we have classified service providers into four categories:
- Leader: Leaders show consistent excellence across all the key dimensions of the ESG assessment and are leading with respect to disclosures of ESG objectives and initiatives.
- Pioneer: Pioneers have distinguished themselves as early movers in the ESG space and are developing strategies to be consistent across dimensions like leaders.
- Emerging: Emerging providers are developing strategies for preparing and presenting their ESG disclosures, using guidelines and formats by major reporting frameworks.
- Aspirant: While they may not have a well-defined ESG strategy as providers in other categories, aspirants strive to pave the way toward their ESG journey.