Sustainable and Green Finance Institute (SGFIN)’s Post

This week we had the pleasure of Prof. Alminas Žaldokas of NUS Business School sharing his latest research titled "ESG Shocks in Global Supply Chains" during our SGFIN Research Seminar. His presentation shed light on how environmental and social (E&S) incidents within supply chains are transforming trade relationships, investor perspectives, and supplier actions:   🔹 The ESG-Driven Shift: When suppliers face E&S incidents, U.S. companies often respond with "discipline by exit"—reducing or ending trade—to derisk their exposure, thus encouraging suppliers to adopt better ESG practices, especially when investor pressure is involved. 🔹 Investor and Consumer Impact: ESG-conscious investors play a key role in prompting companies to reassess suppliers. While consumer boycotts have limited effects, realignments in supplier relationships closely follow investor priorities, underscoring the financial market's influence on sustainable business practices. 🔹 Regulatory Landscape: Public companies face unique pressures to meet ESG standards, with regulations like the EU Corporate Sustainability Due Diligence Directive encouraging self-regulation and indirectly impacting foreign suppliers. This highlights the growing reach of regulatory frameworks across borders.   Prof. Alminas' research highlights a transformative moment in sustainable finance, where regulatory changes, investor expectations, and corporate actions converge to drive real change in global supply chains.    Thank you, Prof. Alminas, for the enriching experience and valuable insights! Sumit Agarwal Johan Sulaeman Zhang Weina (Post contributed by Ahmed Syalabi Seet, Research Associate at NUS SGFIN)

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YeTeng Tan 陈以婷

Connect the Dots | Sustainable Value Chain Risk Management | Applied Mindfulness

1mo

This is such an intriguing and real world topic, so relevant to most companies - well, at least mine. 👋 MSc SGF juniors, hope you are aware how fortunate you are to have these weekly expert seminars. Wish SGFIN would invite alumnus too ;p

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