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Sustainability Evaluation: Assessing Supply Chain Impact on Company Performance

Author

Listed:
  • Antonio Savi

    (Production Engineering Program (PEP/COPPE/UFRJ), Federal University of Rio de Janeiro, Rio de Janeiro 21S41972, Brazil)

  • Luan Santos

    (Production Engineering Program (PEP/COPPE/UFRJ), Federal University of Rio de Janeiro, Rio de Janeiro 21S41972, Brazil
    Faculty of Business Administration and Accounting Sciences (FACC/UFRJ), Federal University of Rio de Janeiro, Rio de Janeiro 22290240, Brazil)

  • Marcelo Savi

    (Mechanical Engineering Program (PEM/COPPE/UFRJ), Federal University of Rio de Janeiro, Rio de Janeiro 21941914, Brazil)

Abstract

Environmental, social, and governance (ESG) aspects have a growing relevance in the corporate world where the objective for sustainability becomes an essential point. The supply chain (SC) is a buyer’s responsibility and accounts for a large part of their ESG footprint. Since ESG performance extends to SC, poor ESG practices in the SC can negatively affect the sustainability of the Anchor Company (AC). Therefore, AC, the buyer, needs to go through a complex, expensive, and time-consuming process to assess their SC. The objective of this work is to develop an ESG assessment model for companies to receive a quantitative score of their footprint by considering both their operations and the SC. The model is verified by considering different scenarios that are designed by testing two different cases with different interactions between two ACs and two SCs with different ESG maturity levels. Results show that the SC has a significant impact on the final ESG score of the AC, highlighting the need for considering the SC to evolve in ESG aspects. In all tested cases, the SC accounted for more than 50% of the final consolidated ESG score. Despite differing ESG maturity levels, two ACs received the same consolidated score due to the influence of their SC scores. Results emphasize that achieving a strong consolidated ESG score is important, and advanced corporate sustainability is not possible without integrating the SC into the strategy. The novel methodology proposed contributes to sustainability, expanding the scope of ESG assessments to include SC and developing a standardized and adaptable model with practical applications.

Suggested Citation

  • Antonio Savi & Luan Santos & Marcelo Savi, 2025. "Sustainability Evaluation: Assessing Supply Chain Impact on Company Performance," Sustainability, MDPI, vol. 17(3), pages 1-23, January.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1158-:d:1581096
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    References listed on IDEAS

    as
    1. Chen, Jen-Yi, 2022. "Responsible sourcing and supply chain traceability," International Journal of Production Economics, Elsevier, vol. 248(C).
    2. Sirish Kumar Gouda & Haritha Saranga, 2018. "Sustainable supply chains for supply chain sustainability: impact of sustainability efforts on supply chain risk," International Journal of Production Research, Taylor & Francis Journals, vol. 56(17), pages 5820-5835, September.
    3. Islam, Muhammad Azizul & van Staden, Chris J., 2018. "Social movement NGOs and the comprehensiveness of conflict mineral disclosures: evidence from global companies," Accounting, Organizations and Society, Elsevier, vol. 65(C), pages 1-19.
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