Due diligence is more than sustainable procurement, but sustainable procurement can—and arguably must—form part of a due diligence process, as one of the central ways in which companies can attempt to mitigate risks in their supply chains.Sustainability can be integrated more centrally into supplier selection and onboarding. For instance, sustainability criteria in tenders/selection processes reward suppliers who can demonstrate that they have processes and actions in place to address sustainability risks. Certifications (e.g., ISO 14001, ISO 50001, ISO 45001, BCorp, Amfori BSCI), ratings (e.g., EcoVadis), and participation in initiatives such as the VOKA SDG Charter can be important indications that suppliers take sustainability seriously.Beyond supplier selection, the key to successful due diligence lies in continuous supplier engagement. Make sure that suppliers understand your sustainability goals, and how you want to involve them in reaching those goals. Don’t make it a top-down exercise but talk to suppliers and try to address their concerns and—if possible—their constraints. In many cases, you will learn that they are not dissimilar from yours.
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