Every product a consumer purchases – a knitwear garment exported from Tiruppur, a pharmaceutical tablet distributed through a Chennai warehouse, or an electronics component assembled in Sriperumbudur – travels through a supply chain process before it reaches its buyer. The supply chain process is the operational foundation of every manufacturing, trading, and retail business. Executing it efficiently determines margins. Managing its risks determines business continuity.
India’s supply chain sector is undergoing simultaneous transformation across two axes: digital modernisation and regulatory expansion. Artificial intelligence (AI)-driven demand forecasting, blockchain-based traceability, and Internet of Things (IoT) sensors are changing how companies plan, source, and deliver goods. At the same time, the Securities and Exchange Board of India (SEBI) Business Responsibility and Sustainability Reporting (BRSR) framework, the European Union Corporate Sustainability Due Diligence Directive (EU CSDDD), and the German Supply Chain Act (Lieferkettensorgfaltspflichtengesetz, LkSG, 2023) are expanding the compliance obligations attached to every stage of the supply chain process.
For Indian businesses – particularly the top 1,000 listed companies subject to mandatory BRSR reporting and the Tamil Nadu and Gujarat exporters supplying European and North American buyers – the supply chain process now generates Environmental, Social and Governance (ESG) exposure at every stage. Scope 3 greenhouse gas emissions from supplier manufacturing, labour rights risks in upstream factories, and anti-corruption exposure in procurement collectively account for the majority of ESG risk that investors and buyers assess when evaluating Indian companies.
This analysis covers the five core stages of the supply chain process, integrates ESG risk assessment at each stage, and provides a practical framework for Indian businesses to achieve both operational excellence and ESG compliance across their supply chains.
What Is the Supply Chain Process?
The supply chain process is the structured sequence of activities that moves goods from raw material origin through production, storage, distribution, and post-sale returns management. The Supply Chain Operations Reference (SCOR) model – developed by the Association for Supply Chain Management (ASCM) – formalises the supply chain process into five domains: Plan, Source, Make, Deliver, and Return. These five domains remain the globally accepted operational framework for supply chain process design and performance measurement.
Indian businesses implementing the supply chain process under SEBI BRSR requirements must now treat these five stages not merely as logistics and operations functions, but as ESG risk vectors. Each stage generates greenhouse gas emissions, social compliance obligations, and governance requirements that aggregate into the company’s total ESG exposure profile. The Scope 3 emissions assessment covering upstream and downstream supply chain activities – required for BRSR Principle 6 disclosure – maps directly onto the five SCOR stages.
The 5 Core Stages of the Supply Chain Process
1. Planning
Planning is the strategic foundation of the supply chain process. Supply chain planning translates customer demand signals into coordinated procurement, production, and distribution decisions across all subsequent stages. Effective planning prevents the two most costly supply chain failures: overstock (excess inventory generating carrying cost and markdown risk) and stockout (demand exceeding supply, generating lost sales and customer defection).
Demand forecasting drives planning accuracy. Indian fast-moving consumer goods (FMCG) companies – managing seasonal demand cycles for agricultural commodities, festival-linked consumer goods, and monsoon-dependent categories – apply statistical and AI-based forecasting models to generate 12-week and 52-week demand projections. Companies such as HUL (Hindustan Unilever Limited) and ITC use integrated business planning (IBP) platforms that align sales forecasts with supply capacity and inventory targets.
Planning also incorporates risk analysis – identifying supply disruption scenarios (supplier concentration, geopolitical risk, climate events) and building contingency inventory or alternate sourcing strategies. For ESG-integrated supply chains, planning additionally incorporates Scope 3 emission budgets – allocating carbon reduction targets across sourcing, manufacturing, and logistics decisions before execution begins.
• Demand forecasting: Statistical and AI-based models generate volume projections by SKU, channel, and geography.
• Capacity planning: Production, warehousing, and transport capacity align with demand forecasts to prevent bottlenecks.
• Risk analysis: Supplier concentration, climate disruption, and regulatory change scenarios are modelled and mitigated.
• Budget allocation: Procurement, logistics, and inventory budgets are allocated based on planned volumes and cost targets.
2. Sourcing
Sourcing is the stage at which companies select, qualify, and engage suppliers to procure raw materials, components, and finished goods. Sourcing decisions determine three interconnected outcomes: cost structure (unit procurement price and payment terms), quality reliability (supplier capability and consistency), and ESG exposure (supplier environmental and labour compliance).
Supplier selection in ESG-integrated supply chains moves beyond price and quality. Companies operating under BRSR Principle 5 (Human Rights) and Principle 6 (Environment) must assess supplier ESG performance as a qualification criterion. GRI Standard 308 (Supplier Environmental Assessment) and GRI Standard 414 (Supplier Social Assessment) provide the measurement frameworks for supplier ESG screening.
Tamil Nadu’s textile export supply chains demonstrate the commercial stakes of sourcing ESG compliance. Tiruppur knitwear exporters supplying European retailers face Sedex Members Ethical Trade Audit (SMETA) and SA8000 audit requirements from buyers. Exporters whose fabric suppliers – dyeing units in Tiruppur and Erode – fail effluent treatment and chemical management audits lose buyer qualification, regardless of price competitiveness. Sourcing ESG screening protects exporters from this downstream audit risk.
• Supplier selection: Vendors are evaluated on price, quality, delivery reliability, and ESG performance.
• Contract negotiation: Terms cover price, lead time, payment, quality standards, and sustainability compliance requirements.
• Vendor audits: First-party and third-party audits verify supplier compliance with quality, labour, and environmental standards.
• Procurement strategy: Dual sourcing, strategic partnership, and spot procurement strategies balance cost and supply security.
3. Manufacturing (Make)
The manufacturing stage converts procured raw materials and components into finished goods through production processes. Manufacturing supply chain management covers production scheduling, quality control, lean manufacturing, and automation – the operational levers that determine per-unit cost, output quality, and production lead time.
Tamil Nadu’s manufacturing sector illustrates the full complexity of this stage. The state’s automotive component manufacturers – supplying Hyundai India in Sriperumbudur, Ashok Leyland in Chennai, and Daimler India in Oragadam – operate lean manufacturing systems aligned with Toyota Production System (TPS) principles, maintaining production cycle times and quality reject rates at OEM-specified thresholds. The textile processing clusters in Tiruppur manage chemical dyeing, knitting, stitching, and finishing processes across hundreds of specialised units – each generating effluent, energy consumption, and water usage that constitute Scope 1 and Scope 2 emissions in the supply chain carbon inventory.
Automation in Indian manufacturing accelerates across automotive, electronics, and pharmaceutical sectors. Robotic assembly lines, automated quality inspection using machine vision, and computer numerical control (CNC) machining improve output consistency while reducing labour-intensive process steps. Automation investments also support ESG metrics: automated chemical dosing in textile dyeing reduces chemical waste; automated energy management systems reduce electricity consumption; robotic handling reduces worker injury rates.
• Production scheduling: Manufacturing capacity allocates against planned orders with buffer for demand variability.
• Quality control: In-process and final inspection systems maintain product quality at specified standards.
• Lean manufacturing: Waste elimination across material handling, motion, waiting, and overproduction reduces cost and environmental impact.
• Automation: Robotics, CNC machinery, and AI-guided systems improve output consistency and reduce per-unit cost.
4. Delivery (Logistics)
The delivery stage moves finished goods from manufacturing facilities through warehousing, transport, and last-mile distribution to the final customer or retail point. Delivery logistics determines fulfilment speed, order accuracy, and logistics cost – the three variables that most directly affect customer satisfaction and distribution margin.
India’s logistics infrastructure shapes delivery performance across every supply chain. Road freight – carrying approximately 60% of India’s cargo by volume – operates across a national highway network of 140,000+ kilometres. Rail freight – underutilised relative to its cost and emission efficiency advantages – handles approximately 30% of cargo. Chennai Port, Nhava Sheva (Mumbai), and Mundra (Gujarat) handle the majority of containerised export cargo, with port congestion and inland connectivity gaps generating transit time variability for Tamil Nadu exporters.
Last-mile delivery – the highest-cost and highest-emission segment of the delivery stage – is undergoing structural change in India. Delhivery, Blue Dart, and Xpressbees collectively handle over 15 million shipments daily. Quick commerce operators (Blinkit, Zepto, Swiggy Instamart) execute sub-30-minute delivery from hyperlocal dark stores – compressing lead time expectations across consumer categories and placing extreme pressure on upstream supply chain responsiveness.
• Warehousing: Distribution centres, regional hubs, and last-mile fulfilment points store finished goods at optimised stock levels.
• Transportation: Road, rail, air, and sea freight modes are selected based on cost, speed, and carbon emission profiles.
• Last-mile delivery: Final shipment from distribution hub to customer determines fulfilment speed and customer experience.
• Inventory management: Real-time stock visibility across warehouse locations prevents stockouts and overstock simultaneously.
5. Returns (Reverse Logistics)
The returns stage – often the most neglected of the five supply chain process stages – manages the reverse flow of goods from customers back through the supply chain. Returns management covers product returns, warranty replacements, recycling, repair, and end-of-life disposal. Effective reverse logistics recovers value from returned goods, reduces landfill waste, and satisfies extended producer responsibility (EPR) obligations.
India’s EPR regulations create compliance obligations that make reverse logistics a legal requirement, not merely a customer service function. The Plastic Waste Management Amendment Rules (2022) impose EPR targets on brand owners for plastic packaging – requiring collection and recycling of specified plastic volumes annually. The Battery Waste Management Rules (2022) and E-Waste Management Rules (2022) similarly mandate reverse logistics programmes for batteries and electronics.
The circular economy model – which ESG Expertisse integrates into supply chain sustainability programmes – treats the returns stage as a value recovery system rather than a cost centre. Tiruppur’s textile waste recycling clusters convert cutting waste and post-consumer garments into recycled yarn, industrial rags, and insulation material. Reverse logistics programmes that feed these clusters create circular value streams while satisfying EPR obligations and reducing landfill disposal cost.
• Product returns: Customer-returned goods flow back through the supply chain for inspection, resale, repair, or disposal.
• Recycling: End-of-life products and packaging re-enter material streams through EPR-mandated or voluntary recycling programmes.
• Repair: Warranty and out-of-warranty repair extends product life, reducing replacement production demand.
• Waste management: Non-recyclable materials are disposed of through compliant waste management processes.
Supply Chain Process vs Logistics
Supply chain process and logistics are related but distinct disciplines. Logistics is a subset of supply chain – specifically the physical movement and storage of goods. The supply chain process encompasses logistics but extends to strategic sourcing, production planning, demand management, and supplier relationship governance. Companies that equate supply chain with logistics under-invest in the planning, sourcing, and returns stages – generating preventable operational and ESG risks.
| Dimension | Supply Chain Process | Logistics |
| Scope | End-to-end: planning through returns | Transportation and storage only |
| Orientation | Strategic and operational | Operational and tactical |
| Coverage | Sourcing, production, distribution, returns | Warehousing, freight, last-mile delivery |
| Time Horizon | Long-term (annual planning cycles) | Short-term (daily/weekly execution) |
| ESG Relevance | Scope 1, 2, and 3 emissions; full social and governance risk | Primarily transport emissions (Scope 3 Category 4) |
| Decision Authority | Supply chain director, procurement head, CEO | Logistics manager, 3PL partner |
Learn more: Retail and Supply chain management
ESG Risks in the Supply Chain Process
ESG risk in the supply chain process is not theoretical. For most Indian manufacturers and retailers, over 70% of total greenhouse gas emissions originate in the supply chain – classified as Scope 3 under the GHG Protocol Corporate Value Chain Standard. Securities and Exchange Board of India (SEBI) BRSR mandatory reporting for the top 1,000 listed companies requires disclosure of supply chain ESG exposure, making supply chain ESG risk management a compliance obligation with direct investor visibility.
Environmental Risks
• Scope 3 emissions: Supplier manufacturing (GHG Protocol Category 1), inbound freight (Category 4), outbound distribution (Category 9), and product end-of-life (Category 12) collectively constitute the majority of a manufacturing company’s total carbon footprint. For a Tamil Nadu garment exporter, Scope 3 may represent 85–95% of total emissions – primarily from cotton cultivation, fibre processing, and chemical manufacturing upstream.
• Transport fuel emissions: Road freight operating on diesel generates approximately 200–250 grams of CO₂ per tonne-kilometre. Fleet emission intensity varies significantly between national highway routes and congested urban corridors. Rail freight emits approximately 25–30 grams of CO₂ per tonne-kilometre – making modal shift from road to rail a primary Scope 3 reduction lever.
• Packaging waste: Single-use plastic packaging in e-commerce fulfilment and FMCG distribution generates EPR obligations under Plastic Waste Management Rules (2022). Companies that fail to meet annual EPR targets face regulatory penalties and reputational exposure.
Social Risks
• Labour practices in supplier factories: BRSR Principle 5 requires human rights due diligence across the value chain. Upstream textile and leather suppliers in India face labour compliance risks – excessive overtime, piece-rate wages below statutory minimum, and informal employment that excludes workers from provident fund and health insurance coverage.
• Worker safety: Warehousing and manufacturing operations generate occupational health and safety (OHS) risks. GRI Standard 403 (Occupational Health and Safety) requires companies to disclose injury rates, fatality data, and OHS management system coverage across direct operations and supply chains.
• Child labour: Agricultural and artisanal supply chain tiers – cotton cultivation in Andhra Pradesh, embroidery in Lucknow, carpet weaving in Bhadohi – carry child labour exposure. GRI Standard 408 (Child Labour) requires companies to assess and disclose child labour risk in high-risk supply chain tiers.
Governance Risks
• Supplier transparency: Companies that cannot map their supply chain beyond Tier 1 suppliers carry governance risk under EU CSDDD due diligence requirements. Retailers and manufacturers exporting to European markets must demonstrate supply chain traceability – a requirement that first requires full supply chain mapping.
• Anti-corruption in procurement: Procurement functions carry conflict-of-interest and bribery exposure – particularly in infrastructure project supply chains and government-linked procurement. GRI Standard 205 (Anti-Corruption) requires disclosure of anti-corruption training coverage and confirmed incidents.
• Traceability failures: Pharmaceutical, food, and luxury goods supply chains require product-level traceability for recall management, authenticity verification, and regulatory compliance. Traceability gaps generate recall cost, regulatory penalty, and consumer trust damage when product safety or authenticity incidents occur.
Step-by-Step ESG Integration into the Supply Chain Process
Integrating ESG into the supply chain process requires a structured, stage-by-stage approach that generates verifiable data for BRSR disclosure and sustainable procurement commitments.
1. Map the full supply chain – Identify all suppliers across Tier 1 (direct suppliers), Tier 2 (suppliers’ suppliers), and Tier 3 (raw material origins). Map by product category, spend concentration, geography, and sector-specific ESG risk profile. A manufacturer with 100 direct suppliers may have 500–1,000 upstream entities generating material ESG exposure.
2. Identify high-risk suppliers – Prioritise suppliers for ESG assessment based on three risk dimensions: sector risk (textile dyeing, leather tanning, and chemical manufacturing carry higher environmental risk than assembly operations); geographic risk (states or countries with weaker labour enforcement); and spend concentration (high-spend suppliers generate the highest procurement leverage for ESG improvement).
3. Conduct supplier ESG audits – Audit high-risk suppliers against GRI Standard 308 (Supplier Environmental Assessment) and GRI Standard 414 (Supplier Social Assessment). Issue corrective action plans for non-compliant findings. Track remediation progress against defined timelines. Document audit coverage and findings for BRSR Principle 5 and Principle 6 disclosure.
4. Calculate Scope 3 emissions – Conduct a Scope 3 emissions assessment using GHG Protocol Corporate Value Chain Standard. Quantify emissions by category in tonnes of CO₂ equivalent (tCO₂e). Prioritise measurement in the three to five highest-emission categories – typically Category 1 (purchased goods), Category 4 (upstream transport), and Category 11 (use of sold products) for manufacturing companies.
5. Set emission reduction targets – Use the Science-Based Targets initiative (SBTi) corporate framework to set supply chain emission reduction targets aligned with a 1.5°C warming pathway. Engage key suppliers in joint reduction programmes: freight modal shift from road to rail, renewable energy procurement, packaging redesign, and process efficiency improvement.
6. Report under BRSR – Disclose supply chain ESG data in BRSR format: Scope 3 emission inventory by category, supplier audit coverage and findings, corrective action completion rates, EPR compliance status, and human rights due diligence coverage. SEBI’s BRSR framework creates the disclosure structure; the ESG supply chain audit process generates the verified data that makes the disclosure credible.
Supply Chain ESG Integration Checklist
✓ Full supply chain map completed to Tier 2 suppliers or beyond
✓ High-risk suppliers identified by sector, geography, and spend
✓ Supplier ESG audits conducted using GRI 308 and GRI 414 frameworks
✓ Corrective action plans issued and tracked for non-compliant suppliers
✓ Scope 3 emissions inventory completed using GHG Protocol methodology
✓ Science-Based Targets initiative (SBTi) targets set for Scope 3 reduction
✓ Transport modal shift assessment completed (road vs rail emission comparison)
✓ EPR compliance verified under applicable waste management rules
✓ Digital traceability system implemented for high-risk product categories
✓ BRSR Principles 5 and 6 disclosures prepared with verified supplier data
| Risk Category | Supply Chain Stage | ESG Exposure | BRSR/GRI Disclosure Requirement |
| Environmental | Sourcing, Manufacturing | Scope 3 Category 1 – supplier manufacturing emissions | BRSR Principle 6; GRI 308 |
| Environmental | Delivery | Scope 3 Category 4 – upstream freight; Category 9 – outbound | BRSR Principle 6; GHG Protocol |
| Environmental | Returns | EPR compliance – plastic, battery, e-waste | BRSR Principle 6; Plastic WM Rules 2022 |
| Social | Sourcing | Supplier labour compliance, child labour risk | BRSR Principle 5; GRI 414, 408 |
| Social | Manufacturing | Worker safety, OHS incidents | BRSR Principle 3; GRI 403 |
| Governance | Sourcing | Supplier transparency, anti-corruption | BRSR Principle 5; GRI 205 |
Supply Chain Challenges in India
India’s supply chain process operates under structural constraints that generate cost, delay, and ESG exposure simultaneously. Businesses that design supply chains without accounting for these constraints build fragile operational architectures that amplify risk at every disruption point.
• Infrastructure gaps: India’s logistics cost as a percentage of GDP – approximately 13–14% – remains significantly higher than comparable economies (USA: 8–9%, China: 10–11%). Road connectivity gaps between industrial clusters and ports, limited multimodal logistics parks, and inadequate cold chain infrastructure inflate both logistics cost and transit time.
• Fuel price volatility: Road freight operating cost – where fuel constitutes 40–45% of total cost – remains directly exposed to global crude oil price movements. Diesel price increases of 10–15% can erode logistics margin significantly for companies operating thin-margin distribution networks.
• Port congestion: Chennai Port – the primary export gateway for Tamil Nadu’s automotive, textile, and leather exports – periodically experiences container dwell time increases from berth congestion and inland connectivity constraints. Port delays generate demurrage costs for exporters and create fulfilment timeline uncertainty for international buyers.
• Climate disruptions: Cyclone impacts on Chennai’s coastal infrastructure, monsoon flooding in supply chain corridors through Andhra Pradesh and Odisha, and extreme heat events affecting warehouse worker productivity and road surface quality generate physical climate risk across Indian supply chains. The Reserve Bank of India (RBI) has identified physical climate risk as a systemic financial risk – relevant to supply chain asset exposure assessment.
• Regulatory complexity: GST e-way bill compliance, FSSAI labelling requirements, Bureau of Indian Standards (BIS) certification, and state-level transport permit variations create multi-layer compliance obligations across the supply chain process. MSMEs supplying organised retailers carry disproportionate compliance cost relative to their operational scale.
Case context – Chennai port logistics: A Tiruppur knitwear exporter shipping 300 containers monthly to European buyers routes export cargo through the Tiruppur Inland Container Depot (ICD) to Chennai Port. During peak export seasons (October–December), port berth congestion adds 3–5 days to container transit time – creating buffer stock requirements and working capital pressure for the exporter. Climate-driven cyclone events – Cyclone Michaung (November 2023) caused Chennai port closure for 48 hours – amplify this transit time risk. Exporters that build climate risk into supply chain contingency planning absorb these disruptions more efficiently than those that do not.
Future of Supply Chain Processes
Four structural forces reshape the supply chain process in India and globally over the next five to ten years: AI-driven automation, blockchain traceability, decarbonisation pressure, and electric fleet transition. Indian businesses that invest in these capabilities now build competitive and regulatory advantages over those that defer.
AI-driven demand forecasting and supply chain planning reduce forecasting error rates by 20–40% compared to statistical methods, according to McKinsey & Company (2023) supply chain benchmarks. Indian manufacturers deploying AI planning platforms – including SAP IBP, Oracle Supply Chain Planning Cloud, and homegrown solutions from Infosys and Wipro – reduce inventory carrying cost, improve service levels, and generate more accurate Scope 3 emission projections by better anticipating production and logistics volumes.
Blockchain traceability creates immutable supply chain records that satisfy EU CSDDD due diligence documentation requirements and enable product provenance claims for premium market positioning. The Cotton Connect platform – operating in Gujarat and Maharashtra – demonstrates blockchain cotton traceability from farm to finished fabric, providing buyers with verified origin data. Pharmaceutical and food supply chains in India are deploying blockchain-based track-and-trace systems to satisfy FSSAI and drug regulatory traceability requirements.
Decarbonisation pressure escalates from multiple regulatory directions simultaneously. India’s net-zero 2070 commitment and 2030 NDC targets create policy tailwinds for supply chain decarbonisation. The EU Carbon Border Adjustment Mechanism (CBAM) – effective from 2026 – prices carbon in imported steel, aluminium, cement, and fertiliser. EU Green Deal regulations will progressively expand CBAM scope to consumer goods. Indian exporters that begin Scope 3 reduction programmes in 2024–2025 build cost and compliance positions that competitors who delay will struggle to match after 2026.
Electric fleet transition reduces last-mile delivery emissions and shields logistics operators from diesel price volatility. Flipkart, Amazon India, and Zomato have committed to full EV last-mile fleets by 2030. The India EV charging infrastructure expansion – targeting 500,000 public charging stations by 2030 under the FAME III policy framework – provides the grid support for fleet electrification at scale.
Frequently Asked Questions
What are the 5 stages of the supply chain process?
The five stages of the supply chain process are: (1) Planning – demand forecasting, capacity planning, and risk analysis that coordinates all subsequent stages; (2) Sourcing – supplier selection, contract negotiation, and vendor ESG qualification; (3) Manufacturing (Make) – production scheduling, quality control, and lean manufacturing execution; (4) Delivery – warehousing, transportation, and last-mile distribution to end customers; and (5) Returns – reverse logistics, recycling, repair, and EPR-compliant waste management. The Supply Chain Operations Reference (SCOR) model defines these five stages as the global standard framework for supply chain process design and performance measurement.
What is the SCOR model?
The Supply Chain Operations Reference (SCOR) model is a globally recognised supply chain management framework developed by the Association for Supply Chain Management (ASCM). SCOR defines the supply chain process across five performance domains – Plan, Source, Make, Deliver, and Return – and provides standardised metrics for measuring performance at each stage. SCOR performance attributes include reliability (on-time delivery, order fill rate), responsiveness (order fulfilment cycle time), agility (supply chain flexibility), cost (logistics cost, cost of goods sold), and asset management efficiency (inventory days of supply, asset turns). Indian companies using SCOR benchmarks align their supply chain performance measurement with global operational standards.
How does supply chain differ from logistics?
The supply chain process is the complete end-to-end system from raw material sourcing through production, distribution, and returns management. Logistics is a subset of the supply chain process – specifically the planning and execution of physical goods movement and storage through warehousing, transportation, and last-mile delivery. Supply chain management includes strategic functions (supplier selection, demand planning, production strategy) that logistics management does not cover. For BRSR and ESG purposes, the supply chain process generates Scope 1, 2, and 3 emissions across all five stages; logistics primarily generates Scope 3 Category 4 (upstream transport) and Category 9 (downstream transport) emissions.
What are Scope 3 emissions in supply chains?
Scope 3 emissions in supply chains are indirect greenhouse gas emissions that occur across the value chain – both upstream (supplier manufacturing, inbound freight, raw material extraction) and downstream (customer delivery, product use, end-of-life disposal). The GHG Protocol Corporate Value Chain (Scope 3) Standard identifies 15 categories of Scope 3 emissions. For manufacturing companies, Category 1 (purchased goods and services) and Category 4 (upstream transport and distribution) typically represent the largest Scope 3 sources. Scope 3 constitutes 70–95% of total carbon footprints for most Indian manufacturers and retailers. SEBI BRSR Principle 6 requires disclosure of material Scope 3 categories.
How can Indian companies make supply chains sustainable?
Indian companies build sustainable supply chains through six integrated actions: mapping the full supply chain to identify ESG risk at each tier; conducting supplier ESG audits against GRI Standard 308 and GRI Standard 414; quantifying Scope 3 emissions using GHG Protocol methodology; setting science-based emission reduction targets through the Science-Based Targets initiative (SBTi); implementing green logistics programmes including EV fleets, route optimisation, and renewable-powered warehouses; and disclosing supply chain ESG performance in BRSR filings. The Scope 3 emissions assessment and supplier audit services that ESG Expertisse provides create the verified data foundation for sustainable supply chain programmes and BRSR compliance.
What are common supply chain risks?
The six most significant supply chain risks for Indian businesses are: supplier concentration risk (over-reliance on single-source suppliers generating disruption vulnerability); logistics infrastructure risk (port congestion, road quality gaps, and climate events disrupting transit reliability); regulatory risk (GST compliance, FSSAI requirements, EPR obligations, and emerging BRSR supply chain disclosure obligations); ESG compliance risk (supplier labour violations, environmental non-compliance, and child labour exposure generating buyer disqualification and reputational damage); climate physical risk (cyclones, flooding, and heat events disrupting production and logistics); and international market access risk (EU CSDDD, German LkSG, and buyer social audit requirements creating export eligibility conditions).