Finance & Insurance References
The industry operates in a global context of tightening regulatory scrutiny. Recent developments are also prompting companies to give due consideration to supply chain risks, for instance in terms of GHG emissions, cyber security or corruption. Coherent sustainability strategies along the value chain are required to meet the expectations of regulators, sector initiatives and customers.
IntegrityNext helps you manage the key sustainability risks and opportunities in your supply chain with minimal effort. Our solutions cover the topics most material to your industry and allow you to meet due diligence requirements and boost your sustainability performance:
along the supply chain
combat corruption and bribery
reducing energy consumption
Risks and Opportunities
Regulatory developments in the industry are gathering pace across many jurisdictions. Of particular note is the ambitious EU Action Plan on Sustainable Finance and its closely-interrelated pillars. The EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR) place extensive reporting obligations on companies. In this context, the role of supply chains is also gaining more and more attention.
While many sectors rely heavily on the sourcing of a wide range of raw materials, components and products, supply chains in the financial industry are less complex. They are marked by a preponderance of service procurement, notably in relation to information technology, data management or consulting. This lends particular weight to adequate information security and data protection measures. The European Banking Authority (EBA) has, for instance, introduced corresponding guidelines on information and communication technology (ICT) and security risk management. Sound business continuity procedures are equally important to avoid service disruptions. Finance and insurance companies should implement comprehensive due diligence measures to mitigate related risks in their supply chains.
The increasing digitalisation of business models in the industry also goes hand in hand with heightened levels of energy consumption. The decarbonisation of emissions-intensive suppliers such as third-party data centre operators is therefore a priority in the environmental domain and can make considerable contributions to lowering the industry’s carbon footprint. Besides, the procurement of office supplies should be predicated on high sustainability standards as well. This applies particularly to electronics and IT equipment with a view to energy and resource efficiency, hazardous substances and conflict minerals. The latter can also be relevant in terms of commodity trading. Stringent procedures are required so as to avoid human rights violations in upstream activities.
Further risks to be accounted for in companies’ supply chain management include bribery and corruption, money-laundering and sanctions compliance.
It is worth noting that financial institutions and insurance companies can effect positive change via their products and become key enablers of sustainable development. Beneficial impacts can accrue from the integration of ESG aspects into project finance, lending and investment decisions, asset management, underwriting, index design, listing or trading activities. Engagement and the development of specialised products such as bonds are further tools available to companies. Ideally, they should all factor in the role of value chains and related risks wherever possible.
IntegrityNext provides a platform for comprehensive ESG supply chain risk management that allows you to meet due diligence requirements and improve your sustainability performance:
- Carry out a carbon footprint assessment and benefit from enhanced visibility into your suppliers’ emissions data, reduction efforts and targets.
- Analyse the most relevant environmental, social and governance risks as part of a five-step risk management process.
It includes an abstract country and industry risk analysis to deliver initial insights into your supply chain’s risk exposure. Based on more detailed pre-built assessments, which draw on authoritative international standards and conventions, you can monitor your suppliers with respect to the main ESG risks:
Carbon footprint: collection of emissions data, monitoring of reduction efforts and SBTi engagement targets (Science Based Targets Initiative)
Anti-bribery and anti-corruption
Adherence to universally accepted human and labour rights
Use of 3TG, based on the RMI’s Conflict Minerals Reporting Template
Compliance with the European RoHS directive on hazardous substances and REACH
We help you identify suppliers with the most severe impacts so that you can develop a coherent strategy and target your preventive and remedial measures accordingly. The results gleaned from the assessments are synthesised in a GRI-certified report that can be readily used for your disclosures.
Increasing transparency about ESG performance
by 200% within a year
"IntegrityNext‘s ESG assessments are the solid foundation of our Vendor Development Program and give us the insights we need about sustainability in our value chain.”
With an ambitious group sustainability strategy in place, focused on the benchmark year of 2030, Swiss Re strategically embedds sustainability in all its activities, including procurement. Swiss Re was looking for a solution to significantly scale up the scope of their ESG assessments, creating the transparency needed to develop vendors and eventually phase out low performers.
How IntegrityNext helps
With IntegrityNext, Swiss Re was able to automate the ESG assessment process and thus scale it with minimal effort. As a result, the reach of the assessments was extended from previously one-third of Tier 1 and Tier 2 suppliers to 100%. This gives Swiss Re the neccessary transparency and provides a solid basis for the company’s Vendor Development Program. Based on the performance data, Swiss Re will take measures to further develop and, where neccessary, phase out vendors.