CSRD: top tips to prepare for collecting value chain information
Fleur Meerman
CSRD and Human Rights Due Diligence expert | Board Member of Open Supply Hub | Moderator
1. Engage with direct business partners in writing, meetings and/or workshops on the importance of value chain transparency supported by top management. Support your value chain with capacity building.
Engagement can also include adding information requirements to sales/purchase contracts and a requirement to cascade this down the chain beyond first tier. For new contracts, this can be implemented immediately, while it would probably require more time for existing relationships.
2. Participate in IRBC multi-stakeholder initiatives that promote the provision of value chain information in local markets and that have local staff in producing countries. The governance structure should include a range of stakeholders that are able to represent affected stakeholders like NGO’s and unions as they can play an important role in increasing value chain visibility, getting insight in potential and actual risks and addressing severe impacts. In general collaboration and partnership with peers, suppliers and NGOs/rightsholders and customers is key.
3. Increase transparency about the supply chain by publishing your production location data on Open Supply Hub. This will allow engagement with stakeholders and will allow you to improve your data and engage with your supply chain to work on improvements.?
4. Where value chain partners do not cooperate to information requests on transparency, the undertaking can, as a last resort, consider alternative sourcing options. Where these are available, the undertaking may introduce a deadline for value chain partners to share information before introducing alternative sources.
5. Internal training, supported by top management, to help with discussions with direct business partners on the importance of insights into the value chain and the related transparency. If attendance to such training is an important performance indicator, it would strengthen the message. Additionally focus on own purchasing practices should be part of this training.
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6. Prepare an IT infrastructure that registers what, where and how you buy/invest. Key areas are:
Which tips do you miss??
Don’t wait any longer to engage with your supply chain. If we want to achieve actual positive impact in supply chains we need to engage with our supply chains as partners.
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Technical Director at European Federation for Accountants and Auditors for SMEs (EFAA)
1 年Non listed SMEs may need help from larger companies in their value chain. Switching supplier, away from an SME struggling to supply the data, should be a last resort..
Worker Rights and Engagement, Global Supply Chains, Human Rights Risks Management, WorkerTech, Grievance, Worker Voice, ESG, CSRD/CSDDD, supply chain training, Sustainability and Innovation Specialist at Labor Solutions
1 年If I may offer some additional context from my work with suppliers— I think it’s important to be clear about expectations but also to let suppliers know what additional support you (the buyer) will provide and what benefits they will receive (better terms, fewer termination events / longer remediation time, access to funding for new processes and data collection, using the data to give them insights about their business that they can use)— spelling out mutual obligations in the contract can help to make these clear. Better buying practices also help relieve some of the pressure on suppliers to compete solely on price, and can give suppliers the breathing space and confidence in the business relationship to share information more readily. And there are some very good, practical reasons why some suppliers in certain jurisdictions and industries are reluctant to share their business and supply chain partners, and so when there is hesitation, building trust by asking good questions and getting to underlying issues so that you can address valid concerns about business interference, trade secrets, and other issues may help you overcome initial barriers.
Commissaris, non-executive director bij Windpark Fryslan Holding B.V.
1 年Great tips Fleur. I would say in general taking a more collaborative and systems approach rather than a transactional one make a big difference.