New Third-Party Risk Management Application Suite Delivers Pre-Configured Assessments and Scoring Aligned to Evolving ESG Frameworks and Regulations
Aravo, the leading provider of third-party risk and resilience solutions, announced Aravo for ESG, a ready-to-use application suite that enables organizations to assess, manage, and continuously monitor their third parties’ environmental, social, and governance (ESG) practices.
Aravo for ESG enables organizations and their extended enterprise to build resilient supply chains that align with consumer values and adhere to government regulations. The solution automates the due diligence process and enforces controls to ensure third parties are in compliance with anti-slavery, conflict materials, environmental, health and safety, diversity, and other ESG mandates.
According to Gartner,[i ]“organizations say planned risk and assurance coverage for ESG commitment and reporting and diversity, equity and inclusion (DEI) specifically will grow the most of any risks in 2022…. Various stakeholder groups are taking action to hold organizations accountable for ESG progress, and consequences are growing more tangible. Thus, executive leaders face a greater imperative to oversee the development of sustainability plans, ESG reporting and disclosures, regulatory compliance, and governance over ESG-related data and metrics.”
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“As ESG mandates like the Paris Climate Accord, German Supply Chain Act, SEC guidelines, and more continue to emerge and evolve, customers, investors, employees, and regulators are demanding that third-parties they work with act with integrity when it comes to safety, sustainability, corporate governance, and human rights. This expectation also extends to ethical practices of fourth and nth parties,” said Dean Alms, chief product officer, Aravo. “The management of ESG risks is not a single implementation. It’s a journey and Aravo can help every step of the way. With Aravo for ESG, organizations can deploy to address one or more ESG compliance programs quickly and expand over time with a unified experience and cross-program visibility.”
Unlike point-solution vendors that address single-use case risk, Aravo is the most experienced provider that delivers cross-functional and enterprise-wide third-party management across multiple risk domains including InfoSec, ABAC, GDPR, financial, ethics, supply chain, and business continuity. Maintaining a single, auditable inventory of all third, fourth and nth party relationships, Aravo provides organizations with a unified view of risks throughout the entire lifecycle of the relationship.
“Aravo has one of the deepest, broadest visions in the third-party governance, risk management, and compliance space,” said Michael Rasmussen, GRC pundit and analyst, GRC 20/20 Research. “In today’s global impact of ESG, Aravo is one of the few solutions solving the most complex organizational challenges in the extended enterprise.”
Aravo integrates with any third-party risk intelligence, including business sustainability ratings provider, EcoVadis. The Aravo Connector for EcoVadis enables organizations to understand their sustainability posture from the outset of the relationship and view the context of overall third-party risk and performance in Aravo.
“Sustainability transparency is an essential business factor for investors, employees, and customers alike. Procurement teams are under intense pressure to have a reliable view of the critical sustainability risks and mitigation strategies across their value chain,” said David McClintock, marketing director at EcoVadis. “The Aravo for ESG solution further enriches our partnership, bringing access to EcoVadis’ integrated insights and tools that organizations need in a single view, for best-in-class supplier ESG performance measurement, better collaboration, and a guided improvement journey.”
Aravo for ESG enables organizations to align with several frameworks such as Carbon Disclosure Project (CDP), Global Reporting Initiative and Responsible Minerals Initiative (GRI-RMI), Modern Slavery Act 2015, RMI ESG Standard, Task Force on Climate-Related Financial Disclosures, UN Human Rights Council, and California Transparency in Supply Chain Act.
Additional Capabilities of Aravo for ESG
- Continuous monitoring of progress status identifies escalations, triggers automated issues and corrective actions, and determines readiness of the completed ESG assessment
Automated renewal management based on the third party’s risk level
- Role-based dashboards and reports give stakeholders visibility into the ESG risk within the portfolio as well as individual entities
Leading multi-national organizations across industries including pharmaceutical and life sciences, financial, high-tech, energy, manufacturing, and consumer goods have deployed Aravo to assess risks of more than 6.5 million third parties, suppliers, and vendors across the globe.
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