Bessie Daschbach Discusses How ESG is Expanding its Reach in Supply Chain Management

August 24, 2023

Hinshaw partner Bessie Daschbach has authored a byline in the Daily Business Review discussing increasing regulatory and market demands pushing environmental, social, and governance (ESG) into supply chains, requiring businesses of all sizes to address ESG factors in their supply chains.

Daschbach noted that market demands will likely continue to create ESG pressure for supply chains. She cited Amazon's 2022 sustainability report announcing that starting next year, Amazon will update its supply chain standards to require regular reporting and emissions goal setting on behalf of its suppliers.

Daschbach added that "supply chains are coming into clearer focus in ESG regulatory frameworks—both implicitly and explicitly," noting the U.S. Securities and Exchange Commission's proposed rule changes that would require companies to disclose information about greenhouse gas emissions.

Daschbach stated,

Businesses that fail to address ESG factors in their supply chains expose themselves to reputational and litigation risk based on claims that their ESG representations do not accurately reflect all of what the business is doing and how it is doing it. That means that the entities in those supply chains will, in turn, be called upon to undertake ESG efforts and make ESG disclosures on which the businesses to whom they supply goods and services can rely.

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"ESG: Increasing Reach Into Supply Chains" was published by Daily Business Review on August 23, 2023.

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