1) Why should we start working on due diligence now?
Put simply: with new regulations like CSRD, CSDDD, EUDR and EUFLR, “wait and see” is no longer an option. Expectations around value chain transparency are tightening fast – and customers want make to sure that their suppliers are actually taking action, not just talking about it.
If you start now, you can:
- build your approach at a reasonable pace instead of firefighting when legal requirements kick in or if any wrongdoings turn up in the value chain.
- it puts you in a much stronger spot in tenders and negotiations. Today sustainability criteria are often the ‘make or break’ factor for even being considered.
- identify and manage risks in your value chain early on – before they turn into costly brand damage or legal headaches.
2) How do we get started – in practice?
In my view, the key is to start simple and then build from there. What I usually recommend is to:
- Set the direction by clearly stating that you do not accept harm to people or the environment in your value chain, and develop or update your Code of Conduct.
- Map your value chain as well as you can today, and mark the gaps in your knowledge instead of getting stuck in perfection.
- Focus where the risk is high and dig deeper into the areas that really matter: like your core spend, high-risk products, or suppliers in high-risk countries.
- Map out your biggest potential impacts on people and the planet, and then prioritize your efforts there.
Once you’ve done this, you’ve already taken your first real steps into due diligence. The most important thing is to stay pragmatic.
3) What are the most common pitfalls?
With many of the companies we work with at 2050, we see two things again and again:
- People have this idea that everything has to be in place before they start. In reality, it’s about getting the ball rolling, focusing on the biggest risks, and then building out the rest as you go.
- Policies or codes of conduct end up as “paper products”. A nice-looking policy isn’t going to do the job if no one knows it exists or what they’re supposed to do with it – it needs to be translated into concrete requirements, routines and follow-up.
To wrap up: there’s no single right answer. It’s all about making smart trade-offs together with legal, operations and procurement. This is not something you can solve in a silo, you need everyone’s perspective to make it work in practice.