Towards transparency in the railway sector's supply chain
Our client, one of the leading players in the national railway transport sector, has made a significant contribution to the evolution of mobility in the country since its establishment in the early 20th century. With over a century of activity, the company has successfully combined tradition and innovation, promoting the development of modern infrastructure and integrated services. Today, thanks to a strategy focused on sustainability, digitalization, and inclusiveness, the group continues to strengthen its role in the mobility landscape, both nationally and internationally, through increasingly efficient, multimodal, and interconnected transport networks.
The Challenge
Our client initially relied on the scores provided by major rating agencies to assess the ESG performance of its current and potential suppliers. However, this approach proved to be limiting in several respects: it lacked transparency regarding the methodology used and did not allow the organization to take full responsibility for the accuracy of the information collected.
These issues became even more critical in light of the European Corporate Sustainability Due Diligence Directive (CSDDD), which requires companies to adopt appropriate tools to identify, prevent, mitigate, and report potential negative impacts on human rights and the environment throughout the entire supply chain. The exclusive use of external, non-proprietary scoring methodologies has proven inadequate for establishing effective engagement with suppliers and for ensuring a sufficient level auditability and traceability of the information collected.
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The Approach
Through the use of ESGeo Suite, we addressed the client's needs and collaborated to create a custom application that allows suppliers to access a dedicated platform, register their information, and complete a personalized questionnaire based on their industry sector. Each questionnaire was designed with a specific set of questions and a diversified calculation methodology to address the peculiarities of each sector, enabling an accurate and sector-specific evaluation.
During the completion process, suppliers are required to upload supporting evidence for the information provided, ensuring transparency and accuracy in the process. A real-time score is generated, providing both a detailed supplier rating, accompanied by a summary report, and an attribute, which is a score that becomes crucial in tender processes and supplier evaluations. This score is transmitted to the central supplier portal, Jaggaer.
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The Impact
Through the development of an advanced assessment tool, our client is able to gain a comprehensive and in-depth view of its suppliers' performance across the entire value chain. This system not only allows for the assignment of an accurate rating but also acts as a continuous engagement tool, enabling suppliers to monitor their performance over time and identify areas for improvement. In terms of sustainability, the application has facilitated the measurement of environmental and social impacts throughout the supply chain.
Additionally, the system has encouraged more circular and sustainable practices among our client’s business partners, creating a virtuous ecosystem focused on responsible growth and minimizing environmental impacts. Our approach has emphasized sustainability and circularity, offering a solution that enhances efficiency, transparency, and the positive contribution of each supplier to the corporate ecosystem.
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