LRQA is pleased to announce its collaboration with the Principles for Responsible Investment (PRI) team on the development of Sustainability in Supply Chains: A Guide for Private Markets Investors.
This new publication provides private markets investors with practical tools and insights to help identify and manage sustainability risks within complex global supply chains.
The guidance responds to growing pressure on investors to address sustainability risks that extend far beyond the operations of portfolio companies. Supply chains are often where the most material ESG challenges lie, including human rights, labour conditions, environmental impacts and governance issues. These risks not only have serious implications for people and the planet but also pose financial, legal and reputational risks for investors.
The guide sets out why robust supply chain due diligence is essential and offers two practical frameworks. One is for embedding sustainability across the investment lifecycle – from pre-investment screening and contracting through to engagement, monitoring and exit.
The other is for portfolio companies to implement a sound human rights and environmental due diligence system. It emphasises the importance of mapping supply chains to identify high-risk areas, using credible data and engaging with suppliers to drive improvement. By taking these steps, investors and portfolio companies can strengthen resilience, enhance transparency and position themselves as leaders in the space.
Collaboration with PRI showcases LRQA’s technical expertise in supply chain due diligence, ESG risk management and responsible sourcing. With decades of experience working across global sectors, and LRQAs own supply chain intelligence software, EiQ, LRQA has seen first-hand the challenges investors and companies face in achieving greater visibility and accountability in their supply chains.
Selina Rathke, Senior Advisory Consultant for LRQA, said:
“We’re thrilled with the publication of this report, following a close partnership with the expert team at PRI. By contributing our knowledge to this guide, we’re pleased support the investment community connect the dots in navigating regulatory changes, meeting stakeholder expectations and unlocking long-term value through more sustainable practices.
“Sustainability in Supply Chains: A Guide for Private Markets Investors is an important resource for investors seeking to align financial performance with positive social and environmental outcomes. LRQA is proud to have played a role in its development and encourages investors to explore the recommendations in full, turning risk management into opportunity.”