43% of CEOs in PwC’s latest Global CEO Survey said supply chain disruption is likely to impact their industry’s profitability significantly in the coming decade. Effective and sustainable management of supply chains, therefore, are a critical factor for success.
In recent years, new regulatory frameworks of corporate sustainability due diligence (DD) have proliferated around the world. The EU is at the centre of this trend, with the Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) which is expected to be adopted in 2024. CS3D will set obligations for nearly 13,000 companies (including 4,000 out of the EU) regarding actual and potential adverse impacts on human rights and the environment, with respect to their own operations, those of their subsidiaries, and those carried out by their business partners including suppliers.
Read more about why our supplier's ESG profile counts here.
Effective implementation of such rules and regulation requires a multidisciplinary approach — involving legal, compliance,risk, finance, reporting, tax and sustainability departments. This places additional pressure on companies still acquiring the ESG capabilities to ensure they meet the requirements of their stakeholders (including regulators), clients and investors.
Additionally, conventional approaches to data collection, analysis and reporting are often manual, subject to errors/inefficiencies and require significant time and resources. These often are insufficient to capture third party data required for effective reporting and/or supply chain risk management. Organisations with thousands, or in tens of thousands of counterparties will simply not find conventional approaches scalable or cost-efficient.
The past months were an opportunity to observe both the EU and selected member states trying to address these key challenges by adopting new due diligence rules limiting environmental and labor risks in corporate supply chains. The United Kingdom, France, the Netherlands, Norway, and Austria are among the countries that already have modern slavery or human rights due diligence laws in place. Germany, by introducing its Supply Chain Act, also aims to drive corporate sustainability in global value chains, advance the green transition, and protect human rights.
Learn more about CS3D and how it will impact your business.
"Supply chains can be highly complex. They often span many countries and include multiple tiers, which are made more opaque by outsourcing and offshoring. They are also essential to the success of almost all businesses and can be a significant source of value creation and innovation. As supply chains fall outside core operations, they expose companies to hidden and uncontrollable risks, typically driven by ESG factors. While a company may implement the highest ESG performance standards in its own operations, many of its suppliers may not hold similar practices. Studies have estimated that up to 90% of a company’s sustainability impacts originate in its supply chain. And our solution serves as a perfect support for companies in managing those impacts."
of large volume of counterparties
relevant to your ESG strategy
and applications
SVCC enables the assessment, prioritisation and management of potential ESG risks along the value chain.
Our solution can help organisations to comply with — and create value from — supply chain due diligence and transparency requirements such as the EU’s CS3D, CSRD, German Supply Chain Due Diligence Act (LkSG), UK and Australia Modern Slavery act and other emerging requirements.
SVCC can automate, streamline and expedite manual and time-consuming tasks, quickly identifying risky business partners.
Customisation of the solution to company-specific needs
Tailor-made advisory services
End-to-end or modular support
Best in class deployment, using cloud-based or collocated systems to address cybersecurity concerns
Access to a wide range of experts ready to advise in many different areas such as ESG, technology, financial crime and legal affairs
Customised dashboards can be set up for effective operations and process management
Adjustability for the incorporation of any inbound regulations, or standards and frameworks.
Insights and recommendations on issues related to extended supply chain management and due diligence activities in the field of sustainability
Insights and recommendations on issues related to extended supply chain management and due diligence activities in the field of sustainability
Insights into key risks and mitigation activities
Guidance on what are current trends and what is expected from clients in the ESG field.
