3 Reasons Why Your Company Needs a Robust ESG Due Diligence Process

Here are three reasons why adopting a robust ESG due diligence process is guaranteed to set you up for success. 

1. Navigate the ESG regulatory landscape more smoothly

As regulators are setting out stricter rules for responsible business conduct, it can be complex to keep up with all the new due diligence requirements and standards that your company needs to comply with. Examples include the EU Corporate Sustainability Reporting Directive (CSRD), the EU Corporate Sustainability Due Diligence Directive (CSDDD) and the Indian Business Responsibility and Sustainability Report. By implementing a robust due diligence process, your company is better equipped to face the growing challenges posed by existing and upcoming regulations as it helps you stay ahead of the curve and adapt more easily to the ever-evolving ESG due diligence landscape.  

2. Enhance your risk & impact management process

Nowadays, companies are expected to adopt a risk-based approach to due diligence to prioritise the most severe risks and impacts in their supply chains and own operations. This can only be achieved by setting up a structured process that helps you effectively assess and manage your company’s environmental, social and governance risks and impacts. This not only ensures the continuous improvement of your operations, but also enables you to meet consumers’ sustainability expectations in order to remain competitive. 

3. Facilitate your sustainability reporting exercise

Gathering quality data for your non-financial reporting is no easy task and can be time-consuming. That is why your reporting exercise needs to rely on a solid ESG due diligence process, as it facilitates your data collection and helps you achieve greater transparency. Only then can you adequately communicate your company’s ESG due diligence efforts to your stakeholders and fulfil your disclosure requirements.  

How amfori can help

amfori will soon be enriching its membership offering with a brand-new solution called amfori SustainaPass. This product is designed to support your company, regardless of its sector or level of ESG maturity, in implementing a robust due diligence process. 

From materiality assessment to reporting, amfori SustainaPass facilitates the ESG due diligence journey through a structured process that leverages your company’s supply chain data captured through amfori BSCI and amfori BEPI and enriches it with insights from the amfori ESG Risk Compass.  

Inspired by the OECD Guidelines for Multinational Enterprises, the GRI Standards, the EU Corporate Sustainability Reporting Directive and the EU Corporate Sustainability Due Diligence Directive, amfori SustainaPass guides you through user-friendly and interconnected modules that support each step of your sustainability due diligence journey. This empowers you to set effective actions to manage potential and actual ESG risks and impacts in your supply chain and report to your stakeholders.  

Watch a test user’s testimonial

While developing amfori SustainaPass, we invited some members to evaluate the product in a test environment to help us optimise it and ensure that it meets companies’ needs. Pascale Mooij, CSR Specialist at Just Brands, took part in the user testing. In this video, she shares the challenges that her company faces with ESG due diligence and how she expects amfori SustainaPass to support with this.

Get ready for an easier ESG due diligence journey with amfori SustainaPass

amfori members are invited to join our members-only webinar on 19 September from 10:00 to 10:45 CET to learn more about our soon-to-be-launched solution.

Not a member yet? Join amfori to embark on your ESG due diligence journey and benefit from a broad range of ESG solutions, including amfori SustainaPass.