ANNOUNCEMENTS
The automotive industry’s complex, multi-tiered supply chains expose companies to significant Environmental, Social, and Governance (ESG) risks that threaten operational continuity, brand reputation, and regulatory compliance. This report develops a Supplier Sustainability Framework (SSF) specifically for the Indian automotive sector, systematically identifying and prioritizing ESG risks using the Analytic Hierarchy Process (AHP) and expert input. The framework enables Original Equipment Manufacturers (OEMs) to assess suppliers across environmental, social, and governance pillars, offering a structured and transparent approach for risk evaluation and informed decision-making.
The research highlights the limitations of traditional, manual ESG data collection methods, which are inefficient and inadequate for large-scale, dynamic supply chains. Digitalization emerges as a transformative solution, facilitating scalable and accurate ESG data collection, real-time supplier performance monitoring, and automated risk scoring. The integration of digital tools not only enhances transparency and data quality but also supports proactive risk mitigation and regulatory alignment.
Empirical evidence from industry case studies and survey data from local suppliers underscore the urgency of addressing ESG risks and demonstrate the practical value of the proposed framework. The findings advocate for a shift from reactive compliance to proactive, digitally enabled supply chain sustainability, positioning automotive companies for long-term resilience and competitiveness in an evolving regulatory landscape.
Key words: Supplier Sustainability Framework (SSF), ESG risks, Automotive supply chain, Digitalization, Risk evaluation.
