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EcoVadis Sustainable Sourcing for Trade What risks should the wholesale industry assess suppliers?
Low Carbon
Feb. 20th, 2024
Traders and wholesalers scored low in the sustainable sourcing component of the EcoVadis assessment, mainly due to the lack of specific analysis of industry supply chain risks.

Traders and wholesalers in the EcoVadis assessment, the sustainable procurement component of the low score, mainly due to the lack of a specific analysis of industry supply chain risks. Companies should consider the environmental and social impacts of their supply chains, focusing on suppliers' production conditions, compliance with industry codes of conduct, e-waste disposal and “ Conflict minerals ” Question. Significant progress can be made by improving a company's sustainable sourcing policy.

Traders, wholesalers, etc., will occasionally encounter customers who ask for EcoVadis evaluation. In the Ecovadis evaluation report we have seen, we found that the sustainable procurement section, the overall score is very low.

Potential risks in the supply chain depend on the type of materials a company purchases, where they come from, and from which suppliers. Companies applying for Ecovadis assessments should consider both the environmental and social impacts of their supply chains. Environmental impacts in Ecovadis audits include all the ecological impacts of a product or service, social impacts include Labour and human rights, and business ethics involved in the production of products and the provision of services. Usually, these two parts are interrelated and influence each other.

Because the trader wholesaler company is not involved in the production process, but instead purchases all products from suppliers and sells them to customers, it should be concerned about the following risks in the supply chain:

1. Under what circumstances does the company know the supplier to produce these products? What are the working conditions at the supplier's factory?

2. Does the supplier follow certain industry codes of conduct, such as the Responsible Business Alliance (RBA) Code of Conduct for the electronics industry?

3. Does the supplier illegally treat and dispose of their e-waste and e-waste?

4. Whether the company purchases may contain “ Conflict minerals 4” Products to indirectly further fund violent conflicts in Africa?

Friends in the trade wholesale and other industries can pay attention to the possible risks of the above suppliers, and improve the company's sustainable procurement policy according to it, should be able to make significant progress on the basis of the original assessment.

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