The evolution towards a sustainable supply chain

​Traditional due diligence focused primarily on mitigating legal and reputational risks. The modern approach demands an integrated vision that transforms the supply chain into a driver of sustainable value.

According to a recent survey by the Sustainability Consortium, less than 20% of the 1,700 companies interviewed report having a complete view of the sustainability performance of their supply chain. More than half are unable to identify the key sustainability issues within their supply chain.

This gap represents both a risk and an opportunity for Italian companies operating in increasingly sustainability- and transparency-driven international markets.

Bridging the gap: from ERP to ESG

Most traditional supply chain management systems, ERPs, and corporate databases are not designed for sustainability reporting or ESG metrics. This technological gap requires targeted investments in dedicated systems or the integration of specific modules for carbon accounting and sustainability data management.

The most effective strategy is to start with strategic suppliers and long-term direct contractual relationships, then progressively extend visibility to higher tiers of the chain.

Engaging suppliers requires a structured approach that goes beyond simple data collection. It is necessary to:

• conduct sustainability surveys to gather baseline ESG data
• understand existing measurement capabilities among suppliers
• educate suppliers on the importance of sustainability for both businesses
• provide support for emissions calculation and required disclosures

Once visibility over Tier 1 suppliers is achieved, it is essential to extend analysis to Tier 2 and Tier 3 suppliers. Primary suppliers often subcontract to other vendors and purchasing agents, especially in the retail, apparel, and fast fashion sectors.

How to build ESG scorecards and activate improvement programs

The ultimate goal of the process should be the creation of a sustainability or ESG “scorecard” for each supplier. Once the company understands the issues and gaps in its supply chain, it can:

• set specific targets
• implement supplier-dedicated programs
• influence existing partners toward more sustainable practices
• consider new relationships with more sustainable suppliers

The scorecard should integrate multiple assessment dimensions:

• environmental performance: emissions, energy consumption, waste management
• social aspects: workers’ rights, safety, diversity and inclusion
• governance: transparency, internal controls, regulatory compliance
• operational resilience: continuity plans, risk management

Supply chain sustainability is a long-term strategic process. The effectiveness of the due diligence process must be regularly reviewed and improved based on the results obtained, using a combination of education, resources, incentives, and, when necessary, corrective measures.

Next steps for companies

Despite the challenges, in most industries, supply chain due diligence represents one of the most meaningful paths to proactively manage supplier risks and reduce the organization’s environmental footprint.

Designing and managing a safe, sustainable, and global supply chain is complex and requires internal capabilities, resources, investments, and, above all, time.

However, when done well, supply chain leadership improves everything—from benefits for local communities to brand perception, from reputation to operational financial results, and even investor consideration.

The role of van Berings

Our expertise in Environmental Law, Corporate Governance, and Regulatory Compliance enables us to offer comprehensive support to companies seeking to turn supply chain management from a compliance obligation into a strategic lever for creating sustainable value.