Due Diligence in the Supply Chain: How to Begin a Risk Assessment

With the EU Corporate Sustainability Due Diligence Directive (CSDDD) on the horizon — and details on scope and timelines still being finalized — companies are already taking steps to prepare, alongside existing national rules in Germany, France, and Norway.

If you’re a CSR manager or responsible for sustainability, one of the first questions that comes to mind is:👉 Where do you start when assessing your supply chain?

A practical first step is to conduct a high-level risk assessment. This helps you identify the countries and sectors where your supply chain operates, along with potential human rights and environmental risks that may arise.

Step 1: Map Risks by Country and Sector

Before diving into specific suppliers or production sites, it’s valuable to first get a sense of the bigger picture:

• In which countries are your key production flows located?

• What sector-specific risks are already known or documented?

A range of publicly available data sources can help you answer these questions.

Step 2: Use Reliable Tools for Your First Analysis

UNGP Reporting Framework

This platform shows how companies around the world report on human rights, categorized by sector and region. It offers valuable insight into what’s happening within your industry and how other companies identify and disclose their risks.🔗 ungpreporting.org

Step 3: Focus on Human Rights Risks — Forced Labor and Labor Rights

Global Slavery Index (Walk Free Foundation)

Forced labor is one of the most frequently assessed risks in due diligence. The Global Slavery Index provides country-level data on the prevalence of modern slavery, helping you prioritize which parts of your supply chain may require closer attention.🔗 globalslaveryindex.org

ITUC Global Rights Index

 Step 4: Consider the Broader Context — Corruption and Governance

Corruption Perceptions Index (Transparency International)

Corruption can be a major obstacle to responsible business practices. This index measures perceived levels of corruption across countries and highlights related issues such as bribery, weak institutions, and lack of transparency.🔗 transparency.org

Step 5: Deepen Your Analysis with Thematic Data (Optional)

Once you have a clearer view of which topics are most relevant to your supply chain, explore more specialized sources for deeper insight:

UNEP Databases (UN Environment Programme)

Provides data on climate change, biodiversity, population, safety, and economic vulnerability—by region or country. You can even combine indicators to tailor your analysis to specific sustainability risks.🔗 https://www.unep.org/publications-data

OECD Databases

Offers a wealth of statistics on economic development, inequality, gender, health, and environmental issues. This data is especially useful if you’re looking for detailed information on working conditions or social disparities.🔗 oecd.org

Building a Solid Foundation for Next Steps

Completing this first risk assessment gives you a strong foundation for shaping your due diligence process. You’ll gain insight into where your supply chain is most vulnerable and which issues deserve priority attention.

Next steps? Deepen your analysis, set clear priorities, and collaborate with partners on concrete actions.

We’ll explore how to do that in our next blog post in the meantime, if you’d like to discuss how to practically apply this approach within your organization, feel free to reach out to us (hello@approven.partners).