This disclosure relates generally to the dynamic sustainability risk assessment of suppliers and sourcing location to aid procurement decision. The existing solutions for sustainability risk assessment involves huge efforts in data collection, upload, consolidation from various data sources which includes sustainability impact factors. The present disclosure captures various data related to the suppliers and the sustainability impact factors from various internal and external data sources and assigns the weights to the sustainability impact factors to generate key performance indicators based on the industry segment and the data related to the suppliers. Further, the system trains an artificial intelligence model based on the key performance indicators and the data related to the suppliers using a ridge regression technique to estimate a sustainability risk assessment of the supplier. The system performs a scenario-based analysis for providing the recommendations to switch the commodity procurement from sourcing location to a target location.
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