UNDERSTAND THE RISK IN YOUR SUPPLY CHAIN
Companies need to know about and act on risks
In recent years there has been a massive global shift from voluntary guidelines to mandatory legislation, which requires businesses to be aware of the social and environmental risks involved in their supply chains and to act in accordance.
Kick-starting your due diligence
In partnership with Wageningen University & Research (WUR), TRACT now provides Risk Scores to help companies kick-start their due diligence process. The Risk Scores focus specifically on child and forced labour in the production of coffee, soy, and palm oil, and reveal the likelihood of a risk for a given country or specific commodity-country combination. Companies can use these scores to prioritise certain value chains and risk areas for further assessments, allowing them to quickly focus resources where the risk and potential impacts are greatest.
TRACT Risk Scores are multilayered
WUR uses quantitative indicators from publicly available sources, such as the International Labour Organization and World Health Organization. They maximise their geographical reach so that businesses can make comparisons between countries, and they supplement this information with regional indicators by product. They also use qualitative data about the conditions in which a particular commodity is produced in a specific country. For example, who does the work and where does it take place? All this information is used to assess the risks.
“Companies are now required to rigorously monitor risks in their supply chains. They need to collect and analyse more information than ever before, and it’s becoming a massive strain on both big and small businesses,” says Sarah Rawson, Director of Socioeconomic Impact at TRACT. “Risk Scores offer clear, actionable insights allowing TRACT users to identify where risks and potential impacts are greatest. With the help of these scores, companies can efficiently navigate due diligence and make their supply chain more sustainable and socially fair.”