Benefits
Environmental Module
Companies that proactively implement sustainable practices can realize significant cost reductions and operational efficiencies, as stated by the World Economic Forum in their guide for business leaders (2017).
Embracing sustainability fosters an enhanced reputation and brand image, as consumers increasingly seek eco-conscious products and trust socially responsible companies, as reported in the Journal of Banking & Finance (2018). Regulatory compliance is also a critical advantage, protecting businesses from potential legal and financial risks related to non-compliance. FRDM’s Environmental Module maps, monitors, and manages environmental risk in your supply chain at a fraction of the cost and time it would take to address manually.
Why Now?
Addressing environmental risk in the supply chain is no longer an option—it is a necessity. Governments, investors, and consumers are increasingly holding businesses accountable for their environmental impact, demanding transparency, and sustainable practices. By complying with regulations, achieving supply chain transparency, conducting risk assessments, adopting sustainable practices, and fostering collaboration, companies can navigate the complexities of the modern business landscape responsibly.
$120 billion
The estimated annual cost of global supply chain disruptions caused by environmental risks, such as natural disasters, extreme weather events, and resource shortages. (Business Continuity Institute, 2019)
25%
The percentage of companies experiencing financial impacts directly related to environmental risks in their supply chains. (CDP, formerly Carbon Disclosure Project, and Accenture 2019)
75%
The proportion of supply chain executives who reported an increase in operating costs due to environmental risks. (a study by the MIT Sloan Management Review and Boston Consulting Group, 2018)
2.9 trillion
The projected total economic cost of climate change impacts on global supply chains by 2040 if no action is taken to address environmental risks. (CDP 2020)
Primary Challenges Facing Companies.
Lack of Supply Chain Transparency:
Limited visibility and understanding of suppliers' environmental practices. Complex Global Supply Chains: managing environmental risks across multiple locations and diverse stakeholders. Resource Scarcity and Price Volatility: The scarcity and price volatility of critical resources, such as water, energy, and raw materials, can disrupt supply chains.
Climate Change and Extreme Weather Events:
Increasing frequency and severity of climate-related events, such as hurricanes, floods, and wildfires, pose significant challenges to supply chain resilience and continuity.
Compliance with Evolving Regulations:
Keeping up with constantly changing environmental regulations and standards across different jurisdictions can be demanding.
Balancing Short-Term Profits with Long-Term Sustainability:
Balancing short-term financial goals with long-term sustainability objectives.
Limited Stakeholder Engagement:
Engaging stakeholders, including suppliers, customers, and local communities, in sustainable practices can be challenging.
Supplier Capacity and Capability:
Many suppliers may lack the capacity or resources to implement sustainable practices.
Lack of Standardized Metrics:
A lack of standardized metrics for measuring and reporting environmental impacts can make it difficult for companies to benchmark their performance and track progress effectively.
Greenwashing and Credibility Concerns:
Building credibility and ensuring that sustainability efforts are genuine.
How It Works
Using AI mapping, indexing, and predictive analytics, FRDM risk ranks each supplier across five spectrums (weak to strong) in regards to environmental policy.
Using AI mapping, indexing, and predictive analytics, FRDM risk ranks each supplier across five spectrums (weak to strong) in regards to environmental policy. FRDM uses only your basic available vendor data (supplier name, industry, location, spend, and purchase) so you don’t have to overburden your team and suppliers with difficult data requests.
FRDM runs constant adverse media checks for any mentions of environmental issues or reports against supplier names. Suppliers are offered a free portal called SUPPLIER LINK providing the supplier with resources and assessments to determine environmental policy maturity based on their country and industry. GHG reporting and certifications are collected through the Supplier Link. All information provided by supplier is nested in their buyer's dashboard.
FRDM runs constant adverse media checks for any mentions of environmental issues or reports against supplier names. Suppliers are offered a free portal called SUPPLIER LINK providing the supplier with resources and assessments to determine environmental policy maturity based on their country and industry. GHG reporting and certifications are collected through the Supplier Link. All information provided by supplier is nested in their buyer's dashboard.
Supplier emissions reporting at scale regardless of supplier base size
Roll up Scope 3 emissions data ready for reporting
Heat map up to commodities level without supplier engagement
100% cloud based - no spreadsheets, emails, or consulting fees needed
Simple performance tracking and training
Intuitive reporting tools
