Sedex, the trusted partner for environment, social and governance (ESG) and sustainable data, has released an update to its industry-leading risk assessment technology. The Radar tool provides businesses with more than 340,000 risk scores to identify and compare supply chain risks globally.
Companies face increasing demands from customers, investors and regulators to manage sustainability risks. This can place significant pressure on business resources – but equipped with Radar’s data, insights, and analysis features, companies can manage these risks effectively across supply chains spanning continents and industries.
Sedex has updated the data in the proprietary risk tool to ensure Radar remains at the forefront of risk analysis technology, empowering businesses to efficiently assess, benchmark and report on social and environmental risk across commodities and sectors.
Radar’s risk scores cover 14 issue areas for 248 countries and 99 industries, across risks such as forced labour, business ethics, and environmental issues. The higher the score, the higher the risk. The tool also incorporates data on the thousands of people and work sites in a company’s supply chain where this is available, providing increased insight with a unique risk score for every site.
The scores are calculated by a custom algorithm that draws on the latest data from authoritative sources on social and environmental risks. These include the World Bank, the International Labour Organization, and the International Trade Union Confederation’s Global Rights Index. A new source for 2022 ensures Radar’s health and safety scores reflect the increasing risk to workers’ health from climate change.
Sedex member Waitrose & Partners says: “Responsible sourcing is at the heart of Waitrose & Partners, as we are a co-owned business that prides itself on ensuring the lives of all workers is respected. We are able to champion responsible sourcing through ethical supply chain due diligence by using Radar, as it allows us to analyse site-level risks to ascertain where there are risks and how salient they are. We then use this information to determine audit frequency for the next stage of our ethical compliance programme.”
Radar enables businesses to assess different suppliers, products and sectors at scale, saving time and money. Its in-depth insights support companies to make data-driven decisions, focus their resources on the highest-priority risks, and take action to drive meaningful, sustainable impact.
“Supply chains are long and complex, with businesses often unaware of the risks they face. The right technology and data is critical for a company to build visibility of all their suppliers and understand where the greatest risks are, to respond accordingly. We provide businesses with a scalable, manageable way to do this, so they can prioritise their efforts and ultimately run more transparent, sustainable operations,” says Jon Hancock, CEO at Sedex.
Sedex member Remy Cointreau says: “Radar is an integral part of our supplier risk assessment and management process. We use the tool to build visibility of suppliers’ risk levels across nearly two hundred work sites, and can monitor these at scale. We create a criticality grid using the risk scores to help us focus our risk management activities. If suppliers are in a high-risk zone, we conduct corporate social responsibility (CSR) audits and develop action plans to reduce the level of risk at work sites.”
Sedex member Agrial Fresh Produce says: “Radar has been an integral tool in the creation of Agrial Fresh Produce’s supplier ethical risk assessment. Its intuitive user interface, coupled with the deep insight that the data provided, was invaluable in our journey to mapping the ethical composition of our entire worldwide supply base – enabling us to implement strategies to minimise our exposure to high-risk suppliers.”