Our 2023 top trends report is available now
2023 transformed the way we perceive Environmental, Social and Governance (ESG) risks. While familiar trends continued – climate impact, legislation, technological advancements – there was a new angle to these patterns that shifted how we should approach responsible sourcing and due diligence. LRQA's new ‘Lead the way’ top trends report is available now and highlights the top seven trends from the past year including:
and more!
How are you currently evaluating risks in your supply chain?
One of our top trends of the year focuses on the proliferation of technology solutions, which have created the growing need for more harmonisation in risk management methodology and due diligence best practices.
New regulations and increasing pressure from investors and consumers are driving the need for more upstream visibility and further due diligence in supply chains. New technologies and better datasets will no doubt have a profound impact on responsible sourcing and benefit risk management. Advanced data analytics and machine learning enable businesses to process vast amounts of data from various sources, facilitating predictive analytics.
While these benefits will improve risk management processes, sourcing professionals must remember that their supply chains are complex, opaque, and highly individualistic, therefore there must be a level of both understanding and tailoring to meet the needs of each programme’s specific risks.
This level of customisation requires integrating the following elements into your programme:
Want to learn more about building an efficient responsible sourcing programme? Contact us to stay ahead in 2024.
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Speaking of staying ahead...
Supply chain due diligence legislation will continue to be at the forefront of the coming year. Laws are evolving and emerging in countries worldwide, and businesses must be aware of regulations that could impact their operations.
Stay up-to-date with new and proposed laws with our supply chain due diligence legislation map.
Stay tuned for our upcoming regulation guide which will further help your business adapt to more stringent measures and stay ahead of those to come.
Why should businesses prioritise due diligence for the upcoming year?
Risk is everywhere. Brands and retailers have seen increased scrutiny in recent years on their supply chains and labour practices. Household brand names have been reportedly linked to factories alleged to be exploiting workers in countries like Myanmar, Bangladesh, Pakistan and even in the US.
These reports include instances of overtime hours, minimum wage violations, and health and safety violations.
Such allegations are reflected in our supply chain due diligence platform, EiQ , which shows each of these countries (and many others) as high or extreme risk for these types of labour violations.
According to our EiQ platform, which leverages onsite audit data, civil society research and machine learning to generate inherent risk scores for countries/regions, products and suppliers, more than 100 countries are at high or extreme risk for overall labour violations, which can include violations such as working hours, forced labour, low wages and/or child labour.
This type of data analysis and access is vital to ensure brand reputation is maintained and human rights are protected from your organisation's operations. This year has amplified the need to be proactive and ensure proper due diligence is conducted to stay aligned with regulatory requirements, investor expectations, and most importantly - ensure workers are granted their fundamental rights to safe and proper working environments.
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