Regulations enforcing environmental and social protection in the value chain have increased worldwide over the last five years. Companies must now be prepared to report transparency on their practices to governmental institutions, extending beyond their business areas. This requires the right approach and support from technology.
How we support your organization.
In 2023, the "Supply Chain Due Diligence Act" (Lieferkettensorgfaltspflichtengesetz - LkSG) was introduced, requiring companies with more than 1000 employees (as of January 2024) in Germany to comply with due diligence requirements concerning human rights violations and environmental impacts. This applies not only to a company’s business activities but also to its extended enterprise network of suppliers. It is not an isolated case and reflects a trend over the last five years where regulatory pressure has increased globally. Some examples include:
The intensity of the scrutiny, the scope and the fines are increasing significantly. The forthcoming European Directive (CSDDD) will now apply to companies with more than 500 employees in Europe. Furthermore, knowing your direct suppliers is insufficient; tier 2 and 3 transparency will be necessary.
BearingPoint brings a unique blend of risk management expertise and innovative technology to accelerate and optimize this journey
This is where we step in! Our functional expertise in the areas of supply chain, risk management and supply chain regulations, coupled with our technological know-how, will help you to overcome these challenges and successfully implement the necessary changes efficiently.
Accelerate data preparation for abstract risk analysis
We utilize our technology and methods to expedite the acquisition and cleansing of the required data. Additionally, we leverage the innovative platform from our partner, IntegrityNext, to reduce the effort needed to assess your supplier against multiple regulations.
Transparency beyond tier 1 suppliers
Regulations like LkSG in Germany, and to a greater extent, the future European directive, make gaining transparency beyond tier 1 essential. Our partnership with Everstream Analytics provides a unique AI-based solution to automate the identification of n-tier suppliers.
Perform all related operations on your behalf as a managed service if you do not have enough resources
Being compliant requires an ongoing monitoring of your suppliers. If your resources are limited, we offer skilled resources and technology to manage them on your behalf as a managed service.