Sustainability transmission through focal nodes in supply chain networks

Abstract

Supply chain networks can be instrumental in transmitting sustainability levels among connected nodes, particularly from customers to suppliers. In this context, we introduce a third type of node, the focal node which is a constituent of a large index and functions dually as both customer and supplier. Further, it is characterized by its centrality, large size, and high visibility within the network. By regression analysis, we show that the ESG scores of these focal nodes exert a positive influence on both their suppliers and customers, highlighting their role in promoting sustainability across the entire network.