Managing supply chain risk

Supply chain and procurement is emerging as one of the most important aspects of any ESG program. From ensuring the right disclosure, to selecting suppliers and using appropriate agreements, every business needs to understand and document the environmental, social and governance aspects of its supply chain.

The risks and opportunities across the supply chain are unique for each organisation, reflecting industry region, workforce demographics, regulatory environment and increasingly, business culture. It encompasses considerations such as human rights (including indigenous community engagement), climate mitigation, environmental impacts, bribery & corruption and other regulatory compliance. 

ESG supply chain management can be an area of differentiation and opportunity, but also substantial risk as getting it wrong in many jurisdictions can result in significant fines and exposure to litigation or regulatory action. In all jurisdictions, the reputational consequences of misjudging ESG issues can bring a business to its knees. 

Assessing your organisation’s ESG-related risk exposure and where opportunities lie can be complex, requiring a global mindset and an understanding of increasingly strict regulation and global sanctions regimes. Businesses must also process and absorb dramatically increased corporate transparency from suppliers and be nimble enough to adapt to the constantly changing requirements of cross border sanctions that can impact global supply chains at any time. As one of the world’s largest law firms with a global footprint monitoring international developments across Europe, the Americas and Asia, Norton Rose Fulbright is uniquely positioned to be your partner and guide as you traverse this complex environment. 

We are proud to have collaborated with the Clean Energy Council on the Addressing modern slavery in the clean energy sector whitepaper.