I not that ESG is integration is very tricky and complex practices when you look at the fact that some companies are negatively affected just by trading with non-aligned companies, so my biggest question: What is my role as an ESG Compliant company in ensuring that my suppliers are ESG-aligned?
How do I ensure that my suppliers align with ESG principles
by Dumsani Hlanze -
Number of replies: 4
In reply to Dumsani Hlanze
Re: How do I ensure that my suppliers align with ESG principles
I note that ESG integration is indeed tricky and complex, especially considering that some companies face reputational and operational risks simply by trading with non-aligned partners. As an ESG-compliant company, your role goes beyond managing your own internal practices — it extends to your supply chain.
Your responsibility includes:
Due diligence on suppliers – Conduct regular assessments and audits to ensure that your suppliers meet your ESG standards, particularly in environmental impact, labor practices, and governance transparency.
Clear contractual requirements – Embed ESG clauses in supplier contracts, outlining minimum compliance expectations and consequences for breaches.
Capacity building – Where possible, work with suppliers to improve their ESG performance through training, guidance, and shared best practices, rather than simply disengaging.
Continuous monitoring – Maintain ongoing review mechanisms, not just one-time checks, to ensure alignment is sustained over time.
Transparency – Disclose your approach to supply chain ESG management in your sustainability reporting, demonstrating accountability to stakeholders.
Ultimately, your role is to set a clear standard, actively engage, and lead by example — using your influence not only to protect your company from indirect ESG risks, but also to elevate the practices of your broader business ecosystem.
Your responsibility includes:
Due diligence on suppliers – Conduct regular assessments and audits to ensure that your suppliers meet your ESG standards, particularly in environmental impact, labor practices, and governance transparency.
Clear contractual requirements – Embed ESG clauses in supplier contracts, outlining minimum compliance expectations and consequences for breaches.
Capacity building – Where possible, work with suppliers to improve their ESG performance through training, guidance, and shared best practices, rather than simply disengaging.
Continuous monitoring – Maintain ongoing review mechanisms, not just one-time checks, to ensure alignment is sustained over time.
Transparency – Disclose your approach to supply chain ESG management in your sustainability reporting, demonstrating accountability to stakeholders.
Ultimately, your role is to set a clear standard, actively engage, and lead by example — using your influence not only to protect your company from indirect ESG risks, but also to elevate the practices of your broader business ecosystem.
In reply to Rony Steeward Salaverry Vera
Re: How do I ensure that my suppliers align with ESG principles
by Leela Julong -
Thank you, Rony, for this very comprehensive breakdown. You’ve highlighted some of the most practical steps companies can take — from due diligence and contractual clauses to capacity building and transparency. I especially like your point about continuous monitoring and not treating supplier checks as a one-time exercise, since sustained engagement is often the key challenge.
In reply to Dumsani Hlanze
Re: How do I ensure that my suppliers align with ESG principles
by Tshepo Mokgwaela -
In support of what Rony has outlined.
As someone who is in mining and have been engaging a lot with our Supply Chain Department with regards to ESG implementation strategies and compliance, the best way to make sure your suppliers are aligned with ESG principles is to keep things straightforward and relationship-driven rather than overly formal.
Think of ESG as a shared responsibility. It’s about building relationships with suppliers who care about the same things you do and helping each other improve not just enforcing rules from the top down.
1. Talk about what matters early on – Before you start working with a supplier, have an honest conversation about your company’s values and goals. Let them know that safety, environmental care, and community responsibility are core to how you do business. That way, they understand it’s not just about ticking boxes, it’s part of how you operate.
2. Choose suppliers who share your mindset – When evaluating suppliers, don’t just look at cost or delivery times. Ask about how they handle things like waste, emissions, worker safety, and local community impact. If they’re already thinking about those things, you’re off to a good start.
3. Put expectations in writing but keep it collaborative – It’s important to include ESG requirements in your contracts, but also make it clear that you’re there to support them in meeting those standards. This builds trust and shows you’re serious about working together, not just enforcing rules.
4. Work as a team, not as an auditor – Instead of showing up only for inspections, involve them in your sustainability journey. Share best practices, invite them to training sessions, or work together on projects to reduce environmental impact. This makes ESG feel like a shared goal rather than a burden.
5. Keep communication going – Mining operations evolve, and so do ESG expectations. Regular check-ins, site visits, and open feedback sessions help you stay aligned and catch any issues early before they become problems.
As someone who is in mining and have been engaging a lot with our Supply Chain Department with regards to ESG implementation strategies and compliance, the best way to make sure your suppliers are aligned with ESG principles is to keep things straightforward and relationship-driven rather than overly formal.
Think of ESG as a shared responsibility. It’s about building relationships with suppliers who care about the same things you do and helping each other improve not just enforcing rules from the top down.
1. Talk about what matters early on – Before you start working with a supplier, have an honest conversation about your company’s values and goals. Let them know that safety, environmental care, and community responsibility are core to how you do business. That way, they understand it’s not just about ticking boxes, it’s part of how you operate.
2. Choose suppliers who share your mindset – When evaluating suppliers, don’t just look at cost or delivery times. Ask about how they handle things like waste, emissions, worker safety, and local community impact. If they’re already thinking about those things, you’re off to a good start.
3. Put expectations in writing but keep it collaborative – It’s important to include ESG requirements in your contracts, but also make it clear that you’re there to support them in meeting those standards. This builds trust and shows you’re serious about working together, not just enforcing rules.
4. Work as a team, not as an auditor – Instead of showing up only for inspections, involve them in your sustainability journey. Share best practices, invite them to training sessions, or work together on projects to reduce environmental impact. This makes ESG feel like a shared goal rather than a burden.
5. Keep communication going – Mining operations evolve, and so do ESG expectations. Regular check-ins, site visits, and open feedback sessions help you stay aligned and catch any issues early before they become problems.
In reply to Tshepo Mokgwaela
Re: How do I ensure that my suppliers align with ESG principles
by Leela Julong -
Thanks for sharing your experience, Tshepo. I really appreciate the practical, relationship-first approach you’ve outlined. It’s a great reminder that ESG alignment is built on trust, not just compliance. Clear expectations, shared values, and ongoing dialogue make all the difference.