Achilles, a global specialist in supply chain risk management and performance analytics, has released new findings showing steady progress in environmental, social and governance (ESG) performance across global supply chains, even as external risks continue to intensify.
The analysis is based on data collected from more than 150,000 suppliers operating across over 40 countries. It indicates that organisations are strengthening ESG and compliance standards year-on-year, with 2025 showing measurable improvement compared to 2024.
Across regions, progress has been uneven but clearly visible. Environmental performance recorded the strongest gains, with improvements ranging between 5% and 10% in Europe, Latin America and North America. Governance indicators also advanced, particularly in Europe and Latin America, where scores rose between 2% and 5%. Social metrics, including labour practices and workplace safety, increased by approximately 2% to 4% globally, reflecting broader alignment with international standards. Compliance levels remained consistently strong across all regions, with only marginal variation.
Europe and Asia-Pacific continued to lead in overall ESG performance, while Latin America stood out as the fastest-improving region, driven by progress in governance and financial resilience. Taken together, the results point to a more structured and mature global supplier base compared to the previous year.
However, the report also highlights a sharp rise in external threats. The number of potential business disruption alerts increased by around 33% compared to 2024. These alerts are linked to a range of factors, including climate-related events such as floods, droughts and extreme weather, as well as geopolitical developments like trade restrictions, sanctions and regional instability.
While companies have made strides in strengthening internal processes, the broader operating environment has become more unpredictable. This contrast underscores the need for organisations to look beyond static assessments and adopt continuous monitoring of risk across their supply networks.
A closer look at environmental metrics reveals both progress and divergence. Europe’s environmental score increased from 49 in 2024 to 52 in 2025, while Latin America rose from 43 to 46, reflecting meaningful gains in sustainability practices. In contrast, Asia-Pacific experienced a notable decline, with scores dropping from 78 to 59, largely due to external environmental pressures rather than weaknesses in governance or reporting. North America showed only modest improvement and remained below the global average.
Social performance remained the most stable ESG pillar, maintaining high average scores globally. Latin America and North America recorded the strongest gains, while Europe continued to close the gap, suggesting greater consistency in workforce standards and safety practices across regions.
Beyond ESG indicators, operational and cybersecurity metrics also improved slightly. Suppliers demonstrated stronger adherence to quality standards and health and safety policies, supported by wider adoption of certifications and structured controls. In cybersecurity, improvements were linked to clearer policies, better training programmes and more systematic incident management.
Despite these advances, the findings point to a changing definition of resilience. Strong supplier fundamentals alone are no longer sufficient. Organisations must be able to anticipate and respond to emerging risks in real time.
Achilles emphasises the importance of continuous visibility across supply chains. Its solutions focus on combining ESG monitoring, compliance tracking and operational intelligence to help businesses identify vulnerabilities and act quickly. By providing consistent data and benchmarking across regions, the company supports more informed decision-making and reduces exposure to both financial and reputational risks.
The report reflects a broader shift in global supply chain behaviour. As geopolitical uncertainty and climate challenges continue to evolve, ESG maturity is becoming a critical component of long-term business stability. Companies that integrate strong performance standards with ongoing risk awareness will be better positioned to maintain trust, meet regulatory expectations and operate with confidence in an increasingly complex environment.
