CAPS News-18 February 2026

How ESG Regulations Are Influencing Sourcing

ESG regulations are playing an increasingly important role in how organizations manage sourcing and supply chain risk. The latest CAPS Research report explores how procurement leaders view these evolving requirements and how their perspectives are shaping sourcing decisions and supplier management.

A key finding shows that 32% of respondents have established minimum ESG requirements for suppliers, reflecting an 11% increase since 2024.

This report provides practical insights into how peers are incorporating ESG factors into their sourcing criteria, balancing regulatory compliance with operational goals, and responding to new challenges. It also includes references to additional CAPS resources on ESG, and examples of actions companies are taking to address their top ESG challenges.

Download the report to see how peers are navigating the impact of ESG regulations and to identify strategies that could benefit your own team.

Quick Fact – Supplier Risk Maturity Linked to Spend Coverage

CPOs rated supplier risk among their more mature supply management capabilities, with an average score of 3.5 out of 5.
CAPS analysis shows that maturity varies significantly by spend under management: organizations managing more than 80% of total spend scored 4.1, compared to 2.9 for those managing less than 80%.

What this suggests: Greater spend coverage is closely associated with higher supplier risk maturity.

Strengthening Supplier Resilience: A Q1 Focus for Procurement Leaders

The start of a new year is an ideal time for procurement leaders to sharpen their focus on supplier risk management. Addressing supplier risks early in the year supports stronger supply continuity and organizational resilience.

To support these efforts, the CAPS Supplier Risk Assessment Process outlines 12 key risk categories, a step-by-step assessment process, and a risk matrix template for tracking and monitoring risks. The Supplier Risk Management Maturity Model complements this by helping organizations evaluate their current capabilities and identify opportunities for improvement.
Together, these resources provide practical tools to help procurement teams assess, measure, and strengthen supplier risk management practices.

Upcoming Webinar: Behavioral Levers for Responsible Supply Chain Decisions

As supply chain teams face increasing pressure to manage supplier risk and advance sustainability goals, procurement plays a key role in driving responsible change. In this upcoming webinar, W. P. Carey Distinguished Chair and Professor Karen Donohue will share insights from behavioral operations research, showing how small, purposeful adjustments to information or decision context can lead to better sustainability and supplier risk outcomes, without adding new mandates or incentives.

The CAPS – W. P. Carey SCM Thought-Leaders Series highlights supply chain scholars whose applied research is shaping the future of the field.

Join us on Tuesday, March 10th, to gain practical perspectives on how behavioral insights can strengthen procurement decision-making.

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CAPS Research