SUCCESS STORY

Structured supplier risk management

Energy Provider:
Building a Scalable ESG-Driven Risk Framework

Creating visibility, reducing exposure, and strengthening resilience

Outcomes

portfolio-wide risk visibility

Clear view of ESG, quality and operational risks across all suppliers

targeted migitation plans

Action plans developed for high-risk suppliers to address priority issues

automated risk monitoring

Tool introduced for lower-risk suppliers to support ongoing oversight

repeatable framework

Risk management playbook enabling consistency and long-term resilience

BACKGROUND

A major energy provider needed a more structured approach to managing supplier-related risks, particularly in ESG and quality—two core pillars of their customer promise.

Limited visibility across the supply chain meant the procurement team could not proactively identify or mitigate risks, heightening exposure to reputational, operational and service-level issues.

the challenge

Risk assessments were carried out inconsistently and mostly during onboarding, making it difficult to understand risk severity or monitor changes over time. ESG considerations were growing in importance, yet the business lacked the tools and framework to assess suppliers effectively or prioritise where to act. Without a clear process, the organisation faced heightened exposure across its supply base and limited ability to support long-term sustainability goals.

SOLUTION

4C delivered a structured, three-step approach that strengthened organisational resilience while elevating ESG considerations across the supplier base:

  1. Segmenting the Supplier Base
    We worked with the procurement and supply chain team to segment the full supplier portfolio, identifying where ESG and quality risks were most material. This created clear risk tiers and a foundation for consistent, portfolio-wide oversight.
  2. Assessing Risk
    For high-risk suppliers, we developed bespoke ESG and quality questionnaires and scoring criteria, conducting detailed assessments and visualising results in a custom dashboard. For lower-risk segments, we sourced and embedded an automated monitoring tool aligned to the client’s ESG priorities.
  3. Managing and Mitigating Risk
    We recommended targeted mitigation actions and developed a practical risk management playbook to guide the procurement and supply chain team’s ongoing activity. This enabled a repeatable and scalable approach that supports long-term sustainability and supply chain resilience.

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