EMSTEEL
EMSTEEL’s suppliers’ ESG impact mapping and responsible sourcing framework
EMSTEEL has launched a pioneering in-house responsible sourcing and ESG supplier mapping programme to embed sustainability across its supply chain and advance its netzero and ESG strategy.
With upstream suppliers accounting for over 40% of Scope 3 emissions, the programme aims to assess, classify, and engage suppliers based on robust environmental, social, and governance (ESG) criteria.
Structured around a three-tier supplier model, the initiative is aligned with leading international standards such as ISO 14001, ISO 45001, CDP, ILO Conventions, CARES, and ResponsibleSteel™. ESG and Sustainability Assessments were made mandatory for Tier 1 suppliers in 2024 and Tier 2 in 2025, with Tier 3 integration planned for 2026.
The programme evaluates suppliers across nine ESG categories—including human rights, wellbeing, water and waste management, biodiversity, and GHG emissions—assigning ESG risk levels (high, medium, or low) to guide targeted engagement, improvement plans, and risk mitigation.
To build supplier capability, EMSTEEL has trained over 300 suppliers through ESG awareness sessions and Climate Fresk workshops focused on Scope 3 reduction for our supply chain function. Through partnership with DitchCarbon, suppliers gain access to tailored decarbonisation insights via a digital portal. High-performing suppliers are recognised through the Sustainability Leaders Recognition Program, while ESG audits of critical local suppliers began in 2025, with international audits planned.
This data-driven and collaborative programme has strengthened ESG integration in procurement, enhanced value chain transparency, and contributed to Scope 3 emissions reduction. It also elevated EMSTEEL’s CARES Responsible Sourcing certificate rating from “Pass” to “Very Good.”
In recognition of its impact, the initiative was awarded the “Procurement Sustainability Champion Award” in 2024, positioning EMSTEEL as a regional frontrunner in sustainable and responsible supply chain transformation.