Why Supply Chain Due Diligence Still Matters

The revised CSDDD is an important part of Europe's broader sustainability framework, alongside legislation such as the EU Battery Regulation and the Forced Labour Regulation. These initiatives are increasing expectations and, in some cases, introducing legal requirements for organizations to understand and manage risks across their supply chains.

"Companies shouldn't look at one regulation in isolation," Raoul explains. "The CSDDD is part of a much broader sustainability framework. Understanding how different requirements fit together helps organizations make better long-term decisions instead of treating compliance as a series of disconnected projects."

For many organizations, stronger supply chain due diligence also supports business continuity, improves supplier relationships, and boosts confidence when responding to customer and investor requests. Everyone benefits from better due diligence.

Many organizations believe they need complete visibility across every supplier before they can begin. Raoul recommends taking a phased approach instead.

So, where is a good place to start? "The first step is understanding your supply chain. From there, you can improve traceability and begin assessing where the greatest risks exist. You don't need perfect visibility from day one, but you do need a clear starting point," he says.

"Procurement teams know their suppliers, sustainability teams understand ESG risks, and compliance teams understand regulations. Bringing those perspectives together creates a much stronger management system."

Organizations are increasingly being asked to demonstrate responsible supply chain management through credible, independent verification.

Raoul points to Kiwa's experience supporting businesses before Germany introduced mandatory supply chain due diligence requirements.

“Before Germany introduced mandatory supply chain due diligence requirements, many organizations were already participating in voluntary sustainability and responsible supply chain initiatives. That gave us the opportunity to develop a certification scheme that enabled organizations to demonstrate their sustainable supply chain management,” says Raoul.

"Kiwa’s SEE Standard supports organizations in mineral and metal supply chains, while Kiwa also provides related ESG and supply chain assessment services across sectors, including organic food, solar, and batteries. Independent verification provides confidence for customers, investors, and other stakeholders."

As supply chain due diligence becomes more established, organizations are also looking for ways to improve efficiency.

"We wanted to remove unnecessary duplication,” explains Raoul. “If one customer has already commissioned an ESG audit of a supplier, there should be a practical way for that verified information to be shared with another customer, where appropriate."

Kiwa's supplier platform allows customers, suppliers, and auditors to collaborate securely, making it easier to share verified audit information while reducing repetitive assessments.

"AI allows us to process large volumes of publicly available information much faster than before. It helps identify potential risks earlier, but technology doesn't replace professional judgment. Every finding still needs expert review."

Part of that expert review is understanding that managing supply chain risks requires more than data. It also requires local knowledge.

Raoul adds, "Our auditors understand the local language, legislation, and business culture, giving customers a much clearer picture of what's happening on the ground. The principles of due diligence may be similar, but implementation always needs to reflect the realities of each sector."

"Organizations that understand their supply chains are better positioned to respond to disruption, meet stakeholder expectations, and make informed business decisions. The investment you make today helps create a stronger, more resilient business tomorrow."