In July 2024, the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CS3D) was published in the EU Official Journal. This European Supply Chain Act requires companies to monitor their upstream and downstream business partners regarding a set of criteria, such as compliance with human rights, work safety, and environmental regulations. Once in force, companies will be obligated to examine their operations and assess their suppliers’ risks of violations. For larger firms with thousands of suppliers, this represents a significant challenge. However, the directive is introduced at a time when supply chain issues are much broader than compliance aspects. The current global situation is characterized by resource shortages and supply disruptions in all industries. Thus, the mandatory monitoring required by this new regulation also provides an opportunity for companies to make their supply chains more resilient in the future. This paper describes the design of a corporate sustainability due diligence process assessment model and depicts its usage as a capability and compliance assurance mechanism embedded within Scrioo, an AI-powered supply chain risk management platform.

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Automatic Assessment of Corporate Sustainability Due Diligence Process Capability and CS3D Compliance

  • Stéphane Cortina,
  • Ruben J. Marques,
  • Yuejun Guo,
  • Joscha Krause

摘要

In July 2024, the European Union’s (EU) Corporate Sustainability Due Diligence Directive (CS3D) was published in the EU Official Journal. This European Supply Chain Act requires companies to monitor their upstream and downstream business partners regarding a set of criteria, such as compliance with human rights, work safety, and environmental regulations. Once in force, companies will be obligated to examine their operations and assess their suppliers’ risks of violations. For larger firms with thousands of suppliers, this represents a significant challenge. However, the directive is introduced at a time when supply chain issues are much broader than compliance aspects. The current global situation is characterized by resource shortages and supply disruptions in all industries. Thus, the mandatory monitoring required by this new regulation also provides an opportunity for companies to make their supply chains more resilient in the future. This paper describes the design of a corporate sustainability due diligence process assessment model and depicts its usage as a capability and compliance assurance mechanism embedded within Scrioo, an AI-powered supply chain risk management platform.