Davy Horizons Whitepaper
Responsible Sourcing in Value Chains
19th July, 2023
Companies can no longer ignore the impact of their operations across all tiers of their supply chain. It is common for companies, regardless of their location or industry, to have limited knowledge about the deeper tiers of their supply chain, which is where the primary risks of modern slavery and environmental issues often reside.
Reputational risks are particularly high for organisations that are traditionally associated with modern slavery, such as Fast-Moving Consumer Goods (FMCG) companies. For instance, many fast fashion brands and retailers worldwide source cotton and yarn through forced labour camps in the Uyghur Region in China. Additionally, electronics and solar panel manufacture have been linked to indications of forced labour2. Modern Slavery laws are in place in many countries now, and with the impending EU Corporate Sustainability Due Diligence Directive (CS3D or CSDDD) and Green Claims Directive, it is crucial for companies to take action now. Organisations should map their suppliers across all tiers using a risk-based approach, conduct comprehensive risk assessments, implement due diligence measures, establish traceability and report on progress. While many companies have made strides by implementing responsible sourcing systems considering social and environmental risks and opportunities, the available data indicates that there is still work to be done.
Download the full whitepaper via the link adjacent.