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Leverage your supply chain for a better planet

Written by Bjarne Keytsman & Peter-Jan Roose

On the 23rd of February, the European Commission put forward its proposal for a Directive on corporate sustainability due diligence, with the aim of increasing sustainable and responsible corporate behavior throughout global value chains.

While these new rules will directly target a narrow group of big corporations, it could indirectly impact more companies which are down their supply chain. With this directive in the pipeline and aimed to be translated into member states law in 2 years, it’s clear that ESG will remain in focus of legislation for the coming years. So how can you make sure that your organization is prepared for the challenge ahead and even bend potential risks into opportunities?

Peter-Jan Roose

Our in-house expert Peter-Jan Roose is launching a sustainable finance series in which he discusses the most important upcoming regulations in sustainable finance. Register now and receive the episodes in your mailbox.

The benefits of a more sustainable, and thus transparent, supply chain

Studies [1] have shown that good corporate management of ESG issues typically result in improved operational metrics such as ROE, ROA, or stock price [2]. When zooming in on supply chain management, we observe five main benefits[3][4]:

  1. Increased stakeholder confidence and more trusting partnerships

  2. Improved risk management in multiple areas: business continuity, reputational damage …

  3. Reduced environmental impact

  4. Facilitates innovation throughout the supply chain