Want Better ESG Scores? Start with Your Suppliers

From the EU Green Deal to the ESPR and EUDR, companies are being asked to demonstrate deeper transparency across their global operations. These sustainability regulations don’t just apply to a company’s direct activities; they demand visibility and accountability throughout the supply chain. As highlighted in a report from KPMG, the pressure is only set to increase. By 2030, poor ESG performers could face serious consequences, from financial penalties to public scrutiny and operational bans. But here's the catch: success in ESG cannot happen in isolation. It must extend across entire supply chains, and that means engaging your SME suppliers.

‍

This is where many large enterprises hit a wall. Their suppliers operate under diverse local regulations, come from different maturity levels in sustainability, and often lack the tools—and sometimes the aim—to share credible data. With fragmented data formats and a general discomfort in sharing business-sensitive information, many SMEs find ESG compliance intimidating, if not impossible. This transparency gap makes it harder to demonstrate compliance or avoid greenwashing accusations. So, how do we reconcile this tension?

‍

The answer lies in empowering rather than demanding. Companies must shift from enforcement to enablement—offering tools that build trust, reduce the cost of compliance, and provide strategic benefits for all stakeholders involved. As I explained in episode 9 of my web series, the foundation for this new approach is Green Supply Chain Management powered by digital traceability, whose advantage is the creation of an auditable, reliable record at every stage of the supply chain. 

‍

To tackle the challenges head-on, Finboot has integrated an ESG Rating & Benchmarking system into our Supplier Portal in MARCO Track & Trace—your digital command center for sustainability and compliance data. One of the standout features now available through this system is our partnership with esg2go.

‍

Introducing the ESG Rating for SME Suppliers

‍

In one of Finboot’s recent blogs, I highlighted the benefits of purchasing a ready-made solution instead of developing it internally. These tools are already developed, tested, and optimized—making them quick to implement, and cost-effective compared to building something from scratch. The same logic applies to this ESG Rating. Why go through the time-consuming and expensive process of creating a custom certification when there’s already a fast, reliable, and economical solution available?

‍

esg2go offers a streamlined and transparent ESG rating tool designed specifically for small and medium-sized enterprises. This solution enables SMEs to assess and report on their sustainability performance using a scientifically calibrated scoring model published in a peer-reviewed journal. It covers ten key ESG dimensions and offers benchmarking insights that allow SMEs to compare themselves against industry peers. Companies prioritizing sustainability are not just preparing for regulatory shifts—they are actively positioning themselves as leaders in an evolving global economy.

‍

What's even better? It's incredibly simple—just follow these 3 simple steps:

1. Plug in your raw numbers or status variables into this user-friendly questionnaire
2. Wait while the system calculates KPIs tailored to your industry and company size
3. Receive 10 scores across ESG areas and benchmark your performance against industry peers

‍

‍

ESG Rating & Green Supply Chain Management

‍

By incorporating this ESG Rating into Finboot's Green  Supply Chain Management offering for our clients—usually large enterprises—, they won’t just collect data, they will be able offer value to their suppliers by unlocking insights into their own ESG performance and providing them with a roadmap to improve. It’s a win-win relationship: while suppliers elevate their strategic positioning, the buying company strengthens its compliance, reduces risk, and enhances the credibility of its ESG claims.

‍

As I explained at the beginning, this system is already in our MARCO Track & Trace solution, offering a centralized digital hub that brings together all your sustainability and compliance data. Moreover, combined with our Supplier Portal, we create a bridge for connecting your supplier relationships with your risk management frameworks.

‍

Here’s what sets the Supplier Portals apart:

• ESG Rating & Benchmarking: With 92% of CFOs planning to increase sustainability investments in 2025, it is clear that ESG metrics are now essential tools for identifying both financial risks and growth opportunities. But you need to actively engage with your SME suppliers; this ESG Rating tool gives you the ability to evaluate ESG performance with hard data, ensuring every partner, no matter their size, meets your standards.
• AI-Driven Risk Assessment: As my colleague Álvaro Llobet recently outlined in a blog post, the system uses AI to scan data and detect emerging risks. You can define your own risk indicators, and the engine will monitor suppliers accordingly—providing real-time alerts, automated recommendations, and full control over what’s shared, when, and with whom.
• Real-Time, Reliable Data: Powered by blockchain, the platform ensures that all data is immutable, audit-ready, and updated in real time. No more version mismatches and manual corrections.

‍

With this digital ecosystem, businesses gain consistency, reduce human error, and simplify the audit process. And for your suppliers? Flexibility is key. They can share data in the way that works best for them:

• Direct Portal Access: Upload information straight into the MARCO Track & Trace interface.
• Form Integrations: Use simple tools like Google or Microsoft Forms—ideal for quick onboarding or collecting feedback.
• Secure Custom Forms: Share MARCO-generated forms via secure workflows or APIs, with enterprise-grade security and data integrity.

‍

‍

Final Thoughts

The road to sustainability isn’t about issuing demands—it’s about building ecosystems. By equipping your suppliers with ESG tools like the esg2go rating system alongside MARCO’s Track & Trace Supplier Portal, you are doing more than protecting your brand. You are laying the groundwork for a collaborative, transparent, and future-ready supply chain.

This is your opportunity to act—not just to comply, but to lead. The digital tools are here. The regulatory wave is building. The market is demanding change. And remember, your buyers have very little tolerance for failure. Failing to provide robust ESG claims to support the market position of your circular or renewable products, or failing to communicate evidence-backed data to substantiate these claims could lead to significant business losses.

Are you ready to enable your suppliers and transform your ESG strategy? 

Contact us to learn how MARCO Track & Trace and the ESG Rating can elevate your entire value chain.

‍