“ESG” in the Advanced Materials Industry
Your materials suppliers are a crucial part of your sustainability story. As the subjects of “sustainability” and “responsible sourcing” come more into focus, businesses are becoming increasingly cognizant of not only their own actions but also those in their supply chain. It helps to know what this means in the advanced materials industry to help you meet your ESG goals and mitigate risk to your business.
ESG is an acronym for Environmental, Social, and (Corporate) Governance. ESG takes the holistic view that sustainability extends beyond just environmental issues.
ESG refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments. Nowadays, suppliers are consistently being evaluated. Companies are assessing and screening ESG risks and growth opportunities across their products or portfolios.
Environmental criteria refer to an organization’s environmental impact and risk management practices. For example, they consider how a company safeguards the environment, including corporate policies, and climate change. Social criteria refer to managing relationships with employees, suppliers, customers, and the communities where an organization operates.
The advanced materials industry is evolving to address ESG concerns and ensure products and materials are produced in sustainable and ethical manners. The mining industry has also felt the pressures for further change improvement and has been increasingly adopting ESG principles to make certain procuring raw minerals respects human rights, protects human and environmental health, and combats forced labor, child labor, human trafficking, and slavery.
Evaluating your suppliers’ sustainability performance may not be as easy as it sounds in today’s complex supply chain environment. When you, as a purchaser, build strong, long-term relationships, it is easier to look beyond the price and availability, thereby enabling you to feel comfortable and confident your supplier is a responsible and trusted material source.
Read our blog “Find the Right Material Supplier” for a guide on how to onboard a new materials supplier if you are evaluating new partners. If you would like to learn more, you are welcome to contact the team at READE to discuss what ESG means for your business.
Reade Advanced Materials is a 100 year-old plus metal powder supplier and represents over 2,000 manufacturers worldwide with a diverse inorganic product line. READE also offers toll processing and packaging services for metal powders from three facilities in The Americas. As your metal powder supplier, READE offers one of the largest portfolios of specialty chemical solids. The materials are available in an extensive range of forms including sheet, foil, film, lump, powder, rod, wire, and tube.
Director of Marketing
Elisabeth Law, +1-401-433-7000