The demands on companies to integrate sustainability into their supply chains are growing steadily. A key component of this sustainability strategy is calculating the ESG score (Environmental, Social, Governance) of suppliers. This metric enables companies to evaluate the sustainability performance and reliability of their partners and ensure they meet the company's environmental, social, and ethical standards.

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Why ESG Assessments for Suppliers Matter

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ESG assessments allow companies to systematically monitor the sustainability of supplied products and services. They provide a valuable foundation for ensuring that suppliers meet established ESG standards and protect the company's long-term sustainability and reputation. With growing regulatory requirements and rising sustainability and compliance standards, the ESG score is becoming a critical criterion for supplier selection and evaluation.

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To support companies with this important task, Tacto provides a practical ESG Score Calculation Template in the form of an Excel file. This template enables companies to conduct ESG assessments systematically and consider all relevant factors. The template is designed to be easily customized to a company's specific requirements and priorities, and through Tacto, companies can also define their own criteria to include in their ESG score calculation.

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The Three Pillars of the ESG Score

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Our ESG calculation covers the three main categories — Environmental, Social, and Governance — providing a comprehensive evaluation of a supplier's sustainability performance. Each category includes various aspects relevant to calculating the ESG score.

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1. Environmental

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This category evaluates the ecological impact of suppliers. The template asks about the existence of environmental certifications and carbon offset programs, among other factors. Based on this information, an Environmental Score is calculated for each supplier.

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2. Social

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The Social category considers the working conditions and social practices of suppliers. It examines, for example, whether a human rights officer is in place and how high the risk of forced or child labor is.

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3. Governance

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This category examines the ethical and corporate practices of the supplier. Criteria include, for example, the percentage of women in leadership positions and the company's corruption risk index. The Governance Score indicates how responsibly and ethically the supplier operates.

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How the ESG Score Calculation Works

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The ESG assessment in Tacto's template is simple and efficient. For each of the three main categories, various relevant aspects are evaluated and converted into a specific score. These individual scores then feed into the overall ESG score, which can be adjusted to reflect the company's priorities.

Benefits of ESG Assessment with Tacto:

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• Flexibility: The template can be easily customized to the company's specific focus areas and requirements.
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• Transparency: A clear and transparent evaluation of suppliers helps make informed decisions and identify risks early.
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• Promoting Sustainability: Regular ESG assessments continuously improve the sustainability of procurement processes and protect the company's reputation.

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Conclusion: Sustainable Supply Chains as a Competitive Advantage

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A structured and comprehensive ESG score for suppliers is increasingly becoming a prerequisite for long-term business success. Tacto's ESG Score Template provides a valuable tool for evaluating supplier sustainability performance and ensuring they meet the company's high standards. This not only creates transparency but also strengthens the sustainability of the entire supply chain — securing long-term competitiveness.

Download our template now!

Efficiently calculating the ESG score (Environmental, Social, Governance) of your suppliers is critical for evaluating their sustainability performance and reliability, and ensuring they meet your company's requirements and expectations. With growing regulatory requirements and rising sustainability and compliance standards, maintaining a comprehensive overview of your suppliers' ESG ratings is becoming increasingly important as a key foundation for supplier selection and evaluation.