Introduction to Sustainable Supply Chains (Danske)

What is a supply chain?

The term describes the chain of businesses supplying and trading goods and services. Supply chains encompass the supply of commissioned products, raw materials, packaging, logistics and transportation needed to get the product to customers. However, they can technically also encompass professional services such as external lawyers and accountants. This all contributes to business, economic and investment growth.

How have companies evolved from CSR to ESG?

During the voluntary days of Corporate Social Responsibility (CSR), many companies were preoccupied with brand protection, altruistic investment or building employee engagement. However, in recent years there's been a flurry of new laws (such as the UK and Australia Modern Slavery Acts) that have included Transparency in Supply Chains clauses. These laws have had a particular focus on human rights risks, mainly concerning social labour and safety conditions but also to the human right to a clean environment. These new laws bring the threat of lawsuits. We have seen this in Germany against firms like KIK, and in the US with Costco. Newer laws are bringing the threat of large fines for companies that don't carry out sufficient due diligence into their supply chains.