Antoniolli Quoted on Evaluating Vendor ESG Practices
Amy recommends that firms send general vendor questions to their direct suppliers.
“Firms can send off a general set of ESG-related questions to Tier One vendors and depending on the responses ask more targeted questions when red flags emerge or pose specific questions based on the interest of the financial institution,” she said.
She added that firms should begin including ESG requirements in vendor contracts.
“There should be contractual provisions which set the ESG expectations of the service provider,” Amy said. “Divorce can be expensive so it is more likely that the financial firm will require that the vendor make improvements by a certain timeframe as a condition of maintaining the relationship.”
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