Supply Chain Due Diligence Act

Requirements of the Supply Chain Due Diligence Act

The SCDDA requires companies to identify and address risks of human rights violations, forced labor, child labor, and environmental damage in their supply chains. Companies must develop a due diligence plan that outlines their approach to identifying, mitigating, and addressing risks in their supply chains.

Risks that have to be considered for a sustainable supply chain

Overall, the SCDDA aims to ensure that companies take responsibility for the impacts of their supply chains and take steps to address any negative effects on human rights and the environment.

Why it's still important if your company is indirectly affected

The supply chain due diligence act aims to promote responsible business practices throughout the supply chain, including the activities of indirect suppliers. While the focus of the law is on the due diligence practices of companies themselves, the law may indirectly impact the activities of indirect suppliers.