Lynette Lee (member, SC Ventures) focuses on driving initiatives and start ups in Sustainability (ESG) space within the Fintech innovation industry. She advances ESG-integration standards and drives the evolution of such stewardship through spearheading collaborative ventures with industries.
The Intersection of Supply Chain Finance and Sustainability: An Evolving Global Landscape
Ever since the COVID-19 pandemic, we can clearly see the evolution of global economy being intertwined with supply chain finance and sustainability. These are topics that have grown in importance for businesses and organizations if they want to be recognized as global players who til as corporate citizens that contribute to profit, planet and people in their journey.
Balancing Profit and Responsibility: The Growing Importance of Sustainable Supply Chain Finance
Supply chain finance involves managing the financing and cash flow of the supply chain, while sustainability is focused on the environmental, social and economic impacts in the supply chain. The success of companies that have incorporated sustainability (ESG) in their business led to operations increased interest in the pursuit of solutions that can balance the implementations ESG solutions alongside profitable management of supply chains. Demands for sustainable supply chain finance solutions that are both profitable and socially responsible has grown. supply chain, while reducing costs and increasing profits.
Organizations need to use a variety of strategies and technologies to meet the rising demands of sustainability and supply chain finance efficiently. Technology also plays a key role in supply chain finance and sustainability. and reduce costs. Artificial intelligence helps increase efficiency and reduce waste by analyzing and optimizing supply chain data. Predictive analytics can help organizations anticipate and respond to market changes and gain cash flow mobility.
Assessing the Impact of Supply Chains on Environment and Society: A Structured Approach
The first step is to use certified and recognized frameworks to prioritize the crucial and critical topics that impact their businesses.
This helps with two areas:
- Standardize the language between finance, sustainability operations and helps in communications to regulators, investors, financiers and customers.
- Set the baseline for double materiality measurements
Using this identifiable structure, businesses can confidently assess and evaluate the impact of the supply chain on the environment and society. They can now deep dive into environmental impacts of the materials and processes used, as well as the social shabus impacts of labor ps practice their strategy and solutions can be implemented to reduce the impact and increase efficiency.
Undeniably, supply chain finance and sustainability are two of the most important topics in today’s business landscape. Organizations must be aware of the trends, evaluate the impact of their supply chains, and use modern technologies that covers their ecosystem to reduce costs and ensure long term sustainability.