Global focus is increasingly turning to supply chains as a recognized source of high energy use, waste accumulation, biodiversity loss, greenhouse gas emissions, and human rights abuses.

The world will not achieve Net Zero 2050 targets or the UN’s Sustainable Development Goals without transforming the management of supply chains to help create a just and positive society for everyone. As companies feel increasing pressure from stakeholders, business leaders have started taking a critical look at their supply chains through an ESG lens.


53% of organizations plan to increase their focus on sustainable sourcing


63% of Canadian SMEs have hired, or plan to hire, an ethical sourcing manager


71% of Canadian CEOs believe stakeholder scrutiny of their performance on ESG issues will only continue to accelerate

Considerations for your leadership team:

  • How are you evaluating and integrating ESG criteria into your supplier selection process to ensure alignment with your own sustainability goals, policies and risk mitigation efforts?
  • Are your suppliers currently reporting on or disclosing their sustainability practices?
  • Are you considering traceability within your value chain to track and demonstrate sustainable material and product sourcing?
  • How are you enhancing resilience within your supply chain to navigate climate-related events and resource scarcity? Have you begun discussing circularity practices with your suppliers?
  • How are you ensuring compliance with existing and emerging legislation and mandatory reporting requirements for environmental and social issues?
  • Do you have the right technology in place to effectively measure, track and report on your supply chain performance? Is the data ready for third party assurance?

How we can help our clients:

  • Reducing environmental and social impacts: Identify opportunities for businesses to minimize the environmental and social impacts associated with raw material extraction and processing
  • Leveraging technology for ESG impact measurement: Enhance transparency and improve decision-making by measuring and verifying the ESG impacts of Tier N suppliers
  • Improving procurement practices: End-to-end strategic support to align the procurement processes with corporate ESG initiatives, build resilience, and create long-term value for all stakeholders
  • Assessing scope 3 GHG emissions: Measure greenhouse gas (GHG) emissions across the 15 Scope 3 categories, including indirect distribution, to support mandatory and emerging reporting requirements (US SEC climate-related disclosure rule, IFRS S2 climate-related disclosures, pertinent ESRS standards, etc.), inform key stakeholders and improve access to capital
  • Strengthening human rights compliance: Identify and reduce risks in manufacturing through comprehensive human rights due diligence and corrective actions;
  • Driving sustainable performance in operations: Implementing a sustainability performance monitoring framework to enable impactful actions aligned with the business’ ESG goals and policies
  • Integrating circularity: Assess opportunities to leverage circular economy practices to transform production models to further reduce environmental impacts across the value chain
  • Mandatory reporting obligations: Working across geographies, we track existing and emerging regulatory requirements and help clients to understand, consolidate and prepare reports against mandatory disclosure obligations (including Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act).

KPMG in Canada’s team of cross functional ESG, accounting, legal, business transformation, data and technology professionals combine deep industry experience and technical subject matter expertise to help businesses of all sizes improve the sustainability of their operations – allowing them to effectively monitor, manage and report on ESG-related issues, providing a clearer picture of their supply chain risks.

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