Sustainability starts with the first raw materials used for your company's product or service. Sustainability management is relevant from the governance of suppliers and raw material extraction to the monitoring of transportation.
The raw materials, primary products and services that are necessary to produce a product or provide a service are relevant to sustainability. No product or service can be sustainable if the components or preliminary products are not sustainable. Therefore, the inclusion of the direct supply chain in sustainability management is relevant for the assessment of a company's own sustainability.
Governments and regulatory bodies have passed several laws and regulations in recent years that force companies to deal much more closely with parts of or the entire supply chain. These can specifically target certain product groups, such as the RoHS Directive 2011/65/EU, the EU Wood Products Directive No. 995/2010 or the US Dodd-Frank Act (Sec 1502); or they can focus on the entire supply chain, such as the French Due Diligence Act (Loi relative au devoir de vigilance des sociétés mères et des entreprises donneuses d'ordre), the Supply Chain Due Diligence Act or the UK Modern Slavery Act.
The Supply Chain Due Diligence Act is becoming increasingly relevant in the implementation of corporate sustainability. We would be happy to support you in introducing the most important elements in your company.
A policy statement on the company's human rights strategy must be issued. Integration into the company's own code of conduct is recommended here.
A structured system for evaluating supply chains should be established to carry out regular risk analyses.
The focus here is on the comprehensive integration of supply chain risks into existing structures.
Sustainability must be integrated into procurement processes in order to anchor prevention measures not only within the company but also with direct suppliers.
It is important to integrate structured processes so that immediate action can be taken when legal violations are detected.
A complaints procedure should be set up in the event of legal violations. This should include the protection of whistleblowers.
A reporting structure must be established to fulfill the documentation and reporting obligations which are necessary to comply with due diligence obligations.
Companies are directly liable for breaches of the legislation. This can result in fines of up to 2% of annual turnover.
