According to Donna, Coupa finds that across their customer base, the environmental side of ESG is primarily concerned with the reduction of carbon from supply chain and Scope-3 emissions. For governance, companies must ensure that the third parties they work with follow global regulations such as the German Supply Chain Act, EU Corporate Sustainability Due Diligence Directive (CSDDD), and EU Corporate Sustainability Reporting Directive (CSRD). Similarly, regional variance plays an important role in informing the social impact of choosing which suppliers to engage.