Supplier Risk Management Methodology Overview

This document is a guide detailing the Supplier Risk Management methodology developed by S&P Global Sustainable1. It outlines the objective of the Supplier Risk Management assessment, which is to measure a supplier's management of environmental, social, and governance (ESG) impacts and risks based on disclosures submitted by suppliers. The assessment produces a relative indicator that compares suppliers within the same industry classification on a scale of 0 to 100. The methodology aims to assist buyers in implementing their Supplier Code of Conduct, enhancing regulatory compliance, and minimizing operational and reputational risks. It consists of three dimensions that encompass 28 criteria and 62 questions, tailored to evaluate the supplier's ability to manage key ESG impacts and risks. The document also describes the workflow of the Supply Chain Methodology and the integration of risk exposure assessments with supplier evaluations to support responsible sourcing programs.