Research methodology

Standard Chartered commissioned independent financial services client engagement consultancy Ideas and Action to survey 914 finance and procurement decision-makers from around the world. The quantitative data was supplemented with 8 in-depth interviews. Fieldwork was conducted during Quarter 4 2020 and Quarter 1, 2021.

Respondent profiles are as follows:

Elements tested for the five Indicators:

Understanding and monitoring labour practices
Understanding and monitoring environmental standards
Understanding and monitoring social impact
Sourcing independent third-party expert sustainability assessments
Understanding and monitoring exposure to physical risks associated with climate risk
Understanding and monitoring exposure to transition risks associated with climate risk
Understanding past labour practice issues
Understanding past environmental standards issues
Understanding past social impact issues
Supporting suppliers to adopt 3R practices

Understanding and monitoring labour practices
Understanding and monitoring environmental standards
Understanding and monitoring social impact
Sourcing independent third-party expert sustainability assessments
Understanding and monitoring exposure to physical risks associated with climate risk
Understanding and monitoring exposure to transition risks associated with climate risk
Understanding past labour practice issues
Understanding past environmental standards issues
Understanding past social impact issues
Supporting suppliers to adopt 3R practices

Elements tested for the five Indicators:

Access to finance facilities to cover periods between payment for cost of goods sold and receiving income from customers
Ensuring financial stability of direct suppliers by including in supplier finance programmes
Ensuring financial stability of indirect suppliers by including in supplier finance programmes
Ensuring financial stability of indirect suppliers by making available finance options outside of supplier finance programmes
Risk mitigation against defective goods or non-delivery
Visibility of procure to pay cycle
Use of platforms / marketplaces / trade networks for different supply chain finance options
Using solutions that extend financing earlier in purchasing or procure to pay cycles or into next tier of suppliers
Models to predict / forecast future prices of supplies
Models to predict / forecast future demand for goods or services

New supplier due diligence and rapid onboarding
Having processes to rapidly pay new suppliers in different geographies / markets
Ability to quickly adapt and change product lines to adapt to market changes
Ability to quickly adjust production volumes to align with demand
Having early warning systems for issues within supply chains
Ability to rapidly switch production to alternative sites
Having access to extensive information on all industry suppliers
Ability to rapidly switch logistics and distribution routes to adapt to market changes
Having fully prepared and tested business continuity plans
Conducting reviews of entire supply chain as a result of the COVID-19 pandemic

Elements tested for the five Indicators:

Involving suppliers in product and category innovation
Participating in industry bodies, associations and industry-wide projects / programmes
Conducting regular ‘informal’ interaction and discussions with suppliers
Having strategic conversations with suppliers on key industry issues
Taking a shared problem-solving approach with your suppliers when issues arise
Pre-agreed processes and policies for communication of potential issues and resolution of current issues
Pre-agreed processes and policies for enforcing contract standards and agreements
Win-win negotiations; transparent processes for fairly negotiating with suppliers
Developing shared objectives/KPIs between the company’s internal departments
Developing shared objectives/KPIs and incentives with suppliers