Building Stronger Supply Chains Through Sustainability and Ethical Responsibility

Analyst Insight: Environmental risks such as deforestation, biodiversity loss and other unsustainable sourcing practices are driving a shift toward full supply chain accountability. Regulations such as the European Union Deforestation Regulation (EUDR), Carbon Border Adjustment Mechanism (CBAM), and the Corporate Sustainability Due Diligence Directive (CSDDD) are intensifying scrutiny. Companies that prioritize transparency and sustainability will not only comply, but also secure resilience and competitive advantage in the evolving market. 

Global supply chains face growing pressure to reduce their environmental footprint. Industries dependent on commodities such as palm oil, soy and timber must comply with stringent rules, including EUDR’s mandate for deforestation-free materials and rigorous due diligence.

The CBAM holds importers accountable for embedded carbon emissions, while the forthcoming digital product passport (DPP) will require lifecycle data on materials and compliance…