Why is this a risk?
Government agencies strive to assess the impacts of industrial emissions and the results of efforts to curb those emissions. Companies are expected to establish evaluation systems to effectively measure output and conformance to clean air and water regulations within the regions in which they operate. Expectations for monitoring and controlled emissions don’t cease at the front gates of a company’s facilities. One of the biggest opportunities for risk is the potential for excessive emissions and waste produced by the supply chain. When issues are raised the suppliers creating the emissions are almost always directly linked to their large customers.
This is demonstrated time and again through countless media articles, the efforts of NGOs, and government/academic studies. Due to the ability to influence the supply chain these big name brands and large Western corporations purchasing the offending supplier’s goods are called out by articles and studies exposing excessive pollutants in an effort to get them to extend monitoring activities beyond their own facilities.
Examples of where this risk could affect you
- A contract manufacturer openly releasing waste into a local river
- A supplier creating health concerns within its community by emitting hazardous pollutants into the air
What sort of suppliers could be engaged in this risk area?
- Coal power plants
- Chemical processing plants
- Any supplier creating stack emissions or material/water waste
How are these risks managed?
The risks of environmental issues are normally managed through:
- reviewing the risks that the suppliers could pose to your company
- obtaining and reviewing the environmental policies and procedures that the company has
- ensuring that suppliers actually act in accordance with their policies and procedures
- testing with audits to ensure compliance.
Which systems and tools do we provide as part of the Supplier Ecosystem™ Initiative to manage these risks?
IntegraWatch® | Compliance Screening database
Litigation or arbitration screening
On-the-ground environmental audits against recognised international standards