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The concept of indirect suppliers refers to suppliers who provide goods or services to a company's direct suppliers. These indirect suppliers are often several tiers removed from the company itself, and their activities may not be directly visible to the company.
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.
For example, companies may be required to implement due diligence measures that extend beyond their direct suppliers to include their indirect suppliers. This could involve requiring their direct suppliers to implement similar due diligence measures with their own suppliers.
Additionally, companies may need to engage in ongoing monitoring of their supply chain to identify any risks or issues related to their indirect suppliers. This could involve conducting audits or other assessments to evaluate the social, environmental, and human rights impacts of their indirect suppliers.
Overall, while the supply chain due diligence act does not specifically address indirect suppliers, its focus on responsible business practices throughout the supply chain means that indirect suppliers may be indirectly impacted by the law.
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