Responsible sourcing in supply chains
Receive tangible recommendations to manage supply chain risk
Evaluating due diligence management systems against external expectations
Having a supply chain ESG due diligence programme in place to identify, monitor, and manage risks is business critical – and increasingly, is a formal requirement in international legislation, including the European Union (EU) Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CS3D), Uyghur Forced Labor Prevention Act (UFLPA), EU Deforestation Regulation (EUDR), and the German Supply Chain Due Diligence Act (LkSG).
The LRQA management diagnostic process evaluates due diligence management systems against external expectations and requirements (e.g., investor expectations, regulations, peer companies practices, and industry trends). It leverages supply chain data insights from EiQ (LRQAs supply chain intelligence platform) to ensure recommendations are aligned with your company’s supply chain risk exposure and presence in key sourcing markets.
Responsible sourcing approach
Our engagement results in meaningful and tangible recommendations to manage supply chain risk, ensures the right governance, policies and procedures are in place, and informs programme design, reporting and disclosure in a way that enables business priorities and risk appetite.
Inputs
- Regulatory landscape mapping
- Management systems review
- Stakeholder engagement
- Supply chain risk analysis
- Benchmarking
Process
- Programme reviewed against five pillars
- Strategy & commitment
- Internal alignment & governance
- Supply chain mapping & transparency
- Engagement & tracking performance
- Communicating & reporting
Outputs
A roadmap including short, medium, long-term actions items, aligned with the company’s level of ambition and compliant with regulations.
What is responsible sourcing?
Responsible sourcing is an approach to procurement and supply chains. It occurs when organizations actively purchase products and services for their operations based on ethical, sustainable, and socially conscious principles in the management practices of the supply chain.
A strong ESG due diligence program for the supply chain is crucial. It helps to identify, monitor, and manage risks. Furthermore, it is increasingly becoming mandatory under international legislation, such as the CSRD, CS3D, UFLPA, EUDR, and the German LkSG.
With the LRQA management diagnostic process, you evaluate your due diligence management systems based on regulations, investor expectations, and industry trends. Thanks to insights from EiQ , LRQA's supply chain intelligence platform, our recommendations align seamlessly with your risk exposure and key procurement markets. Support a more resilient and informed procurement approach with data-driven insights aligned to your risk exposure and supply chain priorities.
Business benefits of responsible sourcing
In addition to legislation, responsible sourcing also offers strategic benefits:
- Reputation and brand trust: Consumers, investors and other stakeholders increasingly value companies with credible sustainability commitments.
- Risk management: Early identification of problems in the chain helps organisations identify and mitigate potential financial and operational risks.
- More efficient supply chain: Transparency often leads to cost savings and process optimization.
- Access to new markets and financing: Increasingly, customers and financiers are making sustainability requirements a condition for collaboration.
Responsible procurement is therefore not only a legal obligation but also a strategic advantage. Companies that take steps now are not only leading the way in compliance but are also strengthening their market position and competitiveness.
Why partner with us?
Aligned with evolving requirements
We update our methodology on a regular basis ensuring alignment with legislation & industry standards.
Tested and refined
Our methodology has been applied with hundreds of companies across geographies and industries for years.
Based on end-to-end expertise
Our evaluation is based on decades of experience not only assessing current states, but also designing and implementing long term programmes.
We speak your language
We provide pragmatic, sensible and resource effective solutions and recommendations that can be implemented and scaled.
We are efficient and action orientated
We know what to look for, so it takes less time and effort for you and your teams to get the insight you need.
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