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Assessments & Strategy
Supplier Risk Assessment
A Supplier Risk Assessment evaluates ESG risks across your supply chain to support due diligence compliance, Scope 3 transparency, and procurement resilience.
Supply chain ESG accountability is now mandated across multiple legislative frameworks. The EU Corporate Sustainability Due Diligence Directive (CS3D / Directive 2024/1760) requires large companies to conduct risk-based due diligence across their supply chains on human rights and environmental impacts. Germany's Supply Chain Due Diligence Act (LkSG, effective 2023) applies to companies with operations in Germany. France's Duty of Vigilance Law (Loi de Vigilance) and the UK Modern Slavery Act 2015 impose similar obligations. In India, SEBI's BRSR Core requires disclosure of supplier assessments for top value-chain partners. Without a structured assessment, organisations risk non-compliance with mandatory due diligence obligations, Scope 3 data gaps, and exposure to supply chain disruptions and reputational damage.
Our approach
A structured supplier risk assessment is conducted across key ESG dimensions using a risk-based methodology aligned with OECD Due Diligence Guidance for Responsible Business Conduct, CS3D requirements, and applicable national supply chain legislation. The objective is to identify, prioritise, and manage risks across the supply chain while meeting regulatory due diligence obligations. Outputs are structured to support ongoing monitoring, supplier engagement, and regulatory reporting.
- Identification and segmentation of key suppliers and categories by spend, geography, sector, and ESG risk profile
- Definition of ESG risk criteria aligned with CS3D, LkSG, BRSR Core, and OECD Due Diligence Guidance
- Collection and evaluation of supplier ESG data, self-assessments, and third-party disclosures
- Risk scoring based on geography (country-level ESG risk indices), sector, activity type, and contractual leverage
- Identification of high-risk suppliers and salient human rights and environmental exposure areas
- Development of supplier engagement strategies, contractual commitments, and corrective action plans
- Integration into procurement policies, supplier codes of conduct, and ongoing monitoring processes
Outcomes
Structured supplier ESG risk register aligned with CS3D, LkSG, and OECD Due Diligence Guidance
Identification of high-risk suppliers with prioritised engagement and remediation plans
Alignment with BRSR Core supply chain disclosure requirements and Scope 3 Category 1 data needs
Strengthened supplier oversight, contractual protections, and due diligence documentation
Reduced legal and reputational exposure under mandatory supply chain due diligence obligations
Speak with an expert
The team can walk you through exactly how Supplier Risk Assessment applies to your organisation's context and objectives.
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