LSHC Horizons Brochure 2024 - Flipbook - Page 6
Hogan Lovells | 2024 Life Sciences and Health Care Horizons | ESG and Supply Chain
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Embracing Diversity, Equity & Inclusion in the supply chain: An ESG imperative
The pivotal role of supply chains in the actual
implementation of Environmental, Social, and
Governance (ESG) principles is well-recognized
in the contemporary business landscape.
Indeed, it is not possible to achieve the goals
that ESG principles pursue by working on a
solo basis: it is crucial to create a chain in which
all links play a role, ensuring consistency and
effectiveness of ESG strategies.
As organizations strive to develop
comprehensive ESG systems, the relevance of
Diversity, Equity, and Inclusion (DE&I) must
not be underestimated. Including DE&I in ESG
strategies underscores the commitment to a
holistic approach to ESG, where the value chain
not only minimizes environmental impact and
promotes good governance but also reflects a
diverse and inclusive workforce and society.
We strongly believe in the importance of DE&I
within the ESG systems. To this end, we work
with our clients to establish and integrate
ESG-compliant systems that encompass DE&I
considerations. Additionally, we are among the
founding members of an association - named
“ForAll” - dedicated to promoting a culture
of DE&I and social sustainability among its
member companies, their suppliers, and the
communities in which they operate.
Giuseppe Aminzade
Counsel
Milan
More specifically, we deem that to implement
ESG principles in the supply chain, with a focus
on DE&I, these are the key elements:
1. Supplier diversity programs.
Incorporating DE&I metrics into ESG
supplier assessment and implementing
procurement policies prioritizing sourcing
from suppliers that share DE&I values,
having implemented ESG-compliant systems
and/or obtained ESG or DE&I certifications.
2. ESG-specific clauses.
Including specific ESG clauses in contracts
with suppliers that ensure adherence also to
diversity and sustainability goals.
3. Capacity building.
Providing training and resources to suppliers
to help them also meet DE&I standards
and rely on experienced subjects to conduct
internal training activities.
It is also crucial not to overlook the power
of leading through example by letting the
DE&I culture penetrate all of the company’s
activities. This extends from more visible
aspects, such as having an effective ESG system
in place that encompasses DE&I requirements
or having internal committees dedicated to
DE&I initiatives, to less visible ones, such as
- in the case of pharmaceutical companies the implementation of DE&I requirements in
research and clinical trials.
Angelo Forte
Associate
Milan
In conclusion, the journey of fully embracing
ESG principles calls for a shift from a
traditional approach. With the right support,
the destination of this journey is the possibility
not only to positively influence the business
environment but also to contribute to building
a better society.
