Firms face fines for supply chain due diligence failures

October 23, 2020 EcoVadis ‏‏‎

Proposed legislation to make human rights due diligence throughout global supply chains mandatory in Germany will “ripple across tier one suppliers”, analysts have said. 

Victoria Gama, analyst at Verisk Maplecroft, said the proposed new law would “level the playing field on human rights obligations for the country’s major corporate organisations”. 

She said: “While the legislation targets large companies, its effects will ripple across tier one suppliers globally. Extending due diligence efforts beyond tier one is unlikely, as Germany has just started developing a regulatory framework on supply chain due diligence and there is limited practice in Europe in moving further down the supply chain.” 

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EcoVadis ‏‏‎

EcoVadis is the world’s most trusted provider of business sustainability ratings, intelligence and collaborative performance improvement tools for global supply chains. Backed by a powerful technology platform and a global team of domain experts, EcoVadis’ easy-to-use and actionable sustainability scorecards provide detailed insight into environmental, social and ethical risks across 200+ purchasing categories and 160+ countries.

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