How Sedex Uses Granular Data For Supply Chain Sustainability

Transparency has rarely been as important for businesses as it is today.

In years gone by, the inner workings of a global corporate supply chain were difficult to comprehend, let alone influence.

The modern business, though, is under pressure from all sides, with consumers, regulators, investors, governments and employees all pushing for supply chain sustainability.

Acting in accordance with edicts like the EU’s Deforestation Regulation and the UK’s Modern Slavery Act, or aiming to fulfil targets like the UN’s SDGs or net zero, all depends on the way companies monitor, measure and manage the sustainability of their global networks.

Of course, that is easier said than done. Without the right data, businesses are fighting this battle in the dark. 

What’s more, many companies are struggling to collect data from up and down their supply chains, instead focusing on the facts and figures closer to home.

Naturally, this is a problem for corporations with ambitious decarbonisation targets, as supply chain emissions account for the vast majority of most enterprise’s carbon footprints.

“When companies collect due diligence data only at the corporate headquarters level, they’re often seeing just the tip of the iceberg,” says Tomas Novotny, Sustainability Expert at Sedex.

“While HQ-level data might paint a reassuring picture, it frequently conceals site-specific issues that could pose material risks to your business.”

Investors and customers often expect precise, auditable information about environmental and social impacts across entire supply chains rather than generalised corporate claims.

Businesses that fail to account for their supply chains are creating huge blind spots for themselves which could trigger regulatory penalties or reputational crises further down the line.

But how exactly can companies address this problem?

How Sedex utilises data for supply chain sustainability

Sedex is one of the firms looking to guide businesses through the labyrinth of supply chain sustainability.

The London-based organisation specialises in data, insights and professional services related to global trading networks.

Perhaps the most important part of Sedex’s process is its capturing of site-level data in supply chains, measuring the ESG impacts of a supermarket’s fruit supplier, for example.

Sedex has collected site-level data for more than 20 years, whilst many of its competitors have concentrated on aggregated corporate assessments.

The platform's approach centres on facility-level data collection through its globally recognised SMETA audit programme and self-assessment questionnaires.

This methodology provides procurement teams with specific insights into actual conditions at individual supplier sites rather than the average corporate performance of the larger supplier company.

Importantly, Sedex keeps data from more than 115,000 supplier sites on its platform, creating an extensive existing database for businesses seeking granular supply chain visibility, rather than a broad-strokes overview.

The team at Sedex works this way because of a belief that supply chains will be the most powerful driver of global sustainability.

“Sustainability is actually all about power and the good news is that supply chains are very powerful,” says Audrey Clavedon, Sedex’s Head of ESG Leadership, Policy and Consulting.

The importance of site-level data

But what are the main advantages of collecting site-level data?

Firstly, it allows procurement teams to target high-risk facilities for assessment, rather than conducting blanket audits across all supplier locations.

It is a targeted approach that can reduce audit fatigue and improve the efficiency of due diligence generally.

Facility-specific insights also allow companies to benchmark supplier locations against one another, which in turn helps them to understand which is the most sustainable.

Then, when procurement teams have replicated that process across a supplier network, they will be able to embed sustainability right through their supply chain.

This kind of data is incredibly valuable to companies and is in high demand.

According to Elisa Molero, ESG & Sustainability Industry Analyst at Verdantix, high-quality data that allows for supply chain agility is “the top priority for 63% of firms”.

The competitive advantage of sustainable supply chains

As regulatory requirements and pressure from stakeholders intensifies, having a granular overview of one’s business will likely prove indispensable.

“The shift toward greater transparency is inevitable,” Tomas explains.

“Companies that embrace site-level sustainability data now will gain a significant competitive advantage in risk management, compliance readiness, and value creation.

“While those who continue to rely on headquarters-level aggregates risk being blindsided by hidden issues lurking within their supply chains.”

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