Sustainable supply chain management - ESG

– Fulfilling upcoming legislative requirements and supporting your sustainability strategy.

Over the past years, requirements and expectations set by national and international bodies have pushed the sustainability agenda to the forefront. For decades corporations have been urged to care for people and the environment in their business operations.

Basic principles for responsible business conduct have been developed by the UN and the OECD, among others. A recent study by the EU Commission has revealed that the voluntary regime for taking responsibility for supply chains has not been effective.

Against this backdrop, in early 2021 the EU Commission is planning to launch a mandatory due diligence directive to push for responsible supply chain management. See also Study on director’s duties and sustainable corporate governance.

Other relevant binding regulations are rapidly emerging in the EU. This includes the unified classification system for sustainable activities, “The Sustainable Finance Taxonomy Regulation”.

In 2018 the Norwegian Government mandated an Ethics Committee to explore responsible business and supply chain regulation. A new law opting for further transparency in the supply chain is expected to enter into force early 2021.

Based on the Ethics Committee’s advice the Norwegian Government initiated a proposal on April 9 for a new law on transparency in the supply chain. The proposal suggests that corporations should have good oversight and control of potential severe negative impacts on human and labour rights in their supply chain. Entities are also expected to be transparent about such impacts and how these are managed to reduce negative consequences. A new law may enter into force in Norway by the end of this year.

There was broad support in the parliamentary vote 10 June on the draft law on enterprises’ transparency and work with human rights and decent working conditions. One more vote in Parliament before the law is passed finally.

– Kvamme Associates has extensive experience in supporting multinational companies in how to operationalize regulations in supply chain management systems. We continuously collaborate with international experts in this field and have gained a valuable understanding of “best practice”.

We offer

• Conducting a systematic risk and opportunity assessment of sustainability issues relevant for your business (e.g. human and labour rights, environmental and climate, health and safety, and business ethics). The objective is to identify actionable activities to be implementation in existing tools and workstreams. This will also provide the basis for your understanding of how to structure your governance, including roles and responsibilities.

• Assistance in defining a Know Your Supplier system and to outline risk mitigation activities where you need them most.  

• Support you in defining a practical approach to monitoring and long-term collaboration with strategic business partners.  

• Assistance in identifying new ways of how your organization can take an integrated approach and establish synergies to achieve long term sustainability goals.