Allianz Global Corporate & Specialty

ESG Risk Briefing

03 2017

ESG RISKS IN SUPPLY CHAINS

Corporate supply chains have become ever more complex. Today, an estimate of 80% of global trade passes through supply chains. Outsourcing production to suppliers in countries with a cost advantage can deliver significant economic benefits. Yet, complex and bigger supply chains are prone to risks. More specifically, environmental, Social and Governance (ESG) issues can carry significant reputational and operational risks.