Interos, the AI-first supply chain risk company, announced its enhanced ESG (Environmental, Social, and Governance) risk model to accelerate sustainability and compliance across global supply chains. The cutting-edge technology leverages a sophisticated, multi-source data approach to embed depth and context to ESG risk data, helping organizations identify and prioritize enterprise response.
Interos’ latest innovation, featured at the company’s annual customer summit, extends ESG risk coverage to critical metrics on Scope 1, 2, and 3 emissions, forced labor, government intervention, diversity, corporate ownership, and more. It includes proprietary data from a range of sources, including ESG Book, a leading global sustainability and technology company. The enhancement aligns with a surge in regulatory actions redefining corporate ESG risk practices, including the E.U. Supply Chain Act and the Uyghur Forced Labor Prevention Act (UFLPA) in the U.S. Attendees at the Interos summit praised the model’s emissions data in particular, noting the challenge of sourcing reliable Scope 1, 2, and 3 intelligence.
“Leaders across industries recognize a majority of ESG violations originate in sub-tier supply chains, emphasizing the criticality of trusted data to support proactive and continuous lifecycle risk management,” explains Andrea Little Limbago, VP Research & Insights, Interos. “By integrating data driven ESG considerations into operational strategies, organizations can safeguard their financial performance and reputation, while also addressing the profound human impact.”
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The enhanced risk model provides deeper context for key ESG sub-factors that trigger disruption, giving organizations the flexibility to interpret data aligned to their organization’s risk appetite.
Maria Mähl, Head of USA ESG Solutions at ESG Book, noted that growing public scrutiny has made ESG a dominant force in corporate agendas, saying “Demand for transparent, technology-enabled sustainability information is growing, driven by a fast-evolving ESG risk landscape. With more and more businesses adapting their risk frameworks to integrate ESG and climate considerations into corporate strategies, we are pleased to support the adoption of next generation supply chain data solutions.”
The updated ESG risk model accelerates organizations to proactive risk approaches anchored in transparent, traceable, and verified data. It monitors a range of critical attributes reflecting the multi-faceted nature of ESG threats:
- Emissions: Improving environmental impact assessments by broadening the range of evaluated emissions, introducing firm-specific emissions categorization, and providing advanced metrics to understand environmental complexities.
- Diversity: Offering a detailed framework for evaluating diversity in firm ownership and workforce, emphasizing inclusivity and representation in both leadership and operations, aligning with broader societal trends and emerging global regulations.
- Forced Labor: Introducing extensive assessments of unethical labor violations and comprehensive metrics for forced and child labor, offering a targeted approach at firm and country levels for better accountability and effective intervention.
- Foreign Ownership: providing detailed assessments and metrics to evaluate foreign/state influence and the potential to disrupt or constrain operations in extended supply chains.
SOURCE: PRNewswire