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How to Prepare Your Vendors for ESG Disclosures

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Are you and your vendors prepared for ESG?

Although there is still limited legislation on mandatory ESG disclosures, regulators are continuing to address issues like climate change and modern slavery. This podcast highlights three ways you can help your vendors prepare for ESG disclosures.

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Podcast Transcript

Hi - this is Kelly Vick with Venminder. 

In this 90-second podcast, you'll learn some practical tips on preparing your vendors for ESG disclosures, which is the reporting data related to how their business activities impact the environment and other social matters.

Here at Venminder, we have a team of industry experts who understand the complexities of environmental, social, and governance issues, otherwise known as ESG.

Although there’s still limited legislation on mandatory ESG disclosures, regulators are continuing to address issues like climate change and modern slavery. The SEC released proposed rule changes related to mandatory climate-related disclosures, which extends to suppliers and other third parties. As regulatory expectations evolve, it’s a good idea to plan ahead and ensure your vendors are prepared.

Here are three ways you can help prepare your vendors for ESG disclosures:

  • First, communicate early and often about expectations. Your vendors will likely be more compliant to any new processes or procedures if you allow plenty of time for them to implement changes.
  • Second, provide education and training when needed. Some of your vendors may not fully understand ESG initiatives and won’t have any program in place to collect and document data. It helps to explain why and how you’ll be working with them to integrate ESG into your third-party risk management program.
  • Finally, establish clear and relevant reporting guidelines. Make sure that your vendors will only be required to report on metrics that are relevant to their products and services. Consider providing your vendors with a template for easier reporting.

The future of mandatory ESG disclosures is still uncertain, but it’s important to consider the planning and collaboration that you’ll need with your vendors. By preparing your vendors now, you’ll be ready to face any new regulations that emerge in the near future.

Hope you found this podcast insightful. Thank you for tuning in and catch you next time!


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