10 Review Later Why is ESG so relevant to supply chain management? Because 8090% of a company's environmental and social impacts occur along their supply chains. Investors are holding company's accountable for the actions of their supply chain partners. Supply chain disruption is a key risk to standard business continuity and profitability. Social media and the internet have enabled incidents on the other end of the world (in regard to labor management, human rights, etc) to significantly damage domestic corporate reputation and consumer support. All of the above