Supply chain due diligence has been transformed from a voluntary best practice into a legal obligation by a wave of international regulations — led by the EU Deforestation Regulation, the OECD Guidelines for Multinational Enterprises, the EU Corporate Sustainability Due Diligence Directive (CS3D), and sector-specific buyer sustainability codes. These frameworks require companies to identify, assess, and address adverse environmental and human rights impacts in their supply chains — and to document the due diligence processes they have followed in a way that can withstand regulatory and judicial scrutiny.
Conduct supplier assessments through questionnaires, document review, and on-site audits as appropriate to risk level. Engage suppliers on due diligence requirements and improvement expectations. Document assessment findings and supplier responses.
Develop risk mitigation plans for identified adverse impacts. Engage suppliers on corrective action requirements and timelines. Design supplier capacity building program for systemic compliance improvement.
Establish ongoing supplier monitoring program with appropriate frequency by risk tier. Prepare due diligence reports for regulatory submission, buyer requirements, and ESG disclosure. Update supply chain risk assessment annually.
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