ELEVATE releases 2020 supply chain risk scores in EiQ
For immediate release
17 March 2020. Hong Kong. ELEVATE, the leading business risk and sustainability solutions provider, today announced the release of its 2020 supply chain risk scorecards in EiQ, the company’s supply chain intelligence platform.
The 2020 risk scores identify new and emerging supply chain risk by geography and sector to meet the needs of sourcing professionals, CSR leaders managing sustainability and social responsibility program effectiveness, as well as investor relations, risk and compliance teams. The 2020 risk scores evaluate five categories including labor standards, environment, business ethics, management systems, and health and safety.
EiQ data indicate a 2% increase in supply chain risk over the last 5 years. In 2019/20, we see a worsening supply chain risk landscape brought about by the trade wars, expansion to less efficient sourcing destinations outside China, a rise in unauthorized subcontracting, and the COVID-19 coronavirus.
Risk is also increasing in what have historically been lower-risk countries. The 2020 risk scores show the United States declining a significant 12% over the last 5 years from a score of 5.63 (medium risk) to 4.96 (high risk), due to the increased risks associated with migrant workers, forced labor, workplace injuries and environmental permits.
At the same time, China has improved from 3.10 (high risk) to 3.63 (high risk). There have been moderate improvements in all categories other than labor standards. Wages and working hours remain as critical issues.
Major declines have manifested in other important sourcing destinations such as Vietnam, Turkey, Portugal, Italy, Poland, Mexico. Cambodia has moved from high risk to extreme risk in part due to forced labor, child labor, wages and poor health and safety conditions.
“The rate of volatility in the global supply chain has accelerated in the past 18 months with the trade wars, cost pressures, new sourcing destinations, unauthorized subcontracting and now COVID-19,” said Dr. Kevin Franklin, Chief Product Officer at ELEVATE. “It is imperative that we measure and assess emerging flashpoints of risk to build more resilient and responsive supply chains. EiQ’s predictive analytics increase our preparedness for continued volatility as well as our decision-making regarding new and existing sourcing destinations.”
ELEVATE’s EiQ produces more than 750,000 supply chain risk scores from the company’s on-the-ground audits that typically represent more than 30,000 days per year at factories and facilities in over 100 countries. Scorecards includes national, sub-national and sector risk views with five years of trending data for 50+ risk issues.
EiQ is a key tool for sourcing design support, sustainability and social responsibility, and for investor relations, risk and compliance teams. Company ESG rankings and investor ratings require access to new types of information and greater granularity for supply chains. EiQ continues to build capacity amongst business professionals to shape and organize the investor and stakeholder stories.
ELEVATE is the leading business risk and sustainability solutions provider. We deliver improved organizational performance through sustainability and supply chain assessment and auditing, consulting, program management and analytics. We shape the industry with our innovative solutions to complex problems, by designing and implementing customized programs and technology that provide complete insight into risk and improve supply chain and sustainability performance. ELEVATE is headquartered in Hong Kong, and the company’s 630 employees oversee work in over 100 countries. For more information about ELEVATE, visit our website or connect with us on LinkedIn and Twitter.
Mark Jones, ELEVATE
Tel: +1 973 885 5191