Regulatory scrutiny of supply chains has never been more intense. New directives and legislation worldwide require organizations to not only manage their own compliance but also ensure the compliance of suppliers and third-party partners.
The Economic Crime and Corporate Transparency Act legislation in the UK emphasizes comprehensive due diligence and fraud prevention measures for third-party partners, reinforcing the importance of transparent and well-documented supply chain management.
The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) requires large companies to address human rights and environmental risks within their supply chains. Organizations must identify, prevent, and mitigate these risks through proactive risk management and transparent reporting practices.
Germany’s Supply Chain Duty of Care Act (LkSG) demands that companies implement robust risk management and monitoring systems for their suppliers. Businesses must ensure they meet rigorous standards for human rights and environmental protection, establishing measures to prevent violations throughout the supply chain.
Regulatory trends in the APAC region mirror global shifts toward heightened supply chain scrutiny. Australia’s Modern Slavery Act requires businesses to report on steps taken to combat modern slavery in their supply chains. Similarly, Japan’s Guidelines on Respect for Human Rights in Responsible Supply Chains urge companies to conduct due diligence and foster transparency to manage human rights risks.
