CRIF provides technology for sustainable supply chain management » Leadersnet

And with the recent agreement between EU countries on supply chain law – the Corporate Sustainability Due Diligence Directive (CSDDD) – the risks associated with negligent CSDDD have also come into focus for companies.

Verifying supply chains for ESG standards

Companies are committed to verifying their supply chains regarding ESG (environmental, social and governance) standards and reducing risks such as human rights violations and environmental damage. “Companies now need a 360-degree view of what their suppliers and partners are doing. Their business now also depends on whether their supply chain is managed sustainably,” says Boris Rixe, Managing Director of CRIF Austria. Through Synesgy, CRIF now wants to offer companies the technology needed for sustainable supply chain management.

Study of risk management

The risk management study conducted by CRIF Austria, Business Circle and EY Austria shows that many companies were already concerned about the issue of sustainability before the law, but there is still much room for improvement. 10.6% of companies surveyed said that environmental, social and governance risks are taken into consideration very strongly, while 41% rated them as very important. “These findings show that there is a growing sensitivity among companies when it comes to the impact that ESG risks can have on their business models and long-term success,” Rixey said.

The need to take action on environmental, social and governance risks

The results also show that despite growing awareness of this issue, there is still much to be done. 25.8% of companies surveyed reported that they consider environmental, social and governance (ESG) risks to only a weak extent, and another 22% gave it very weak consideration. “These numbers indicate that risk assessment and management efforts in this area definitely need to be increased. Many companies have so far stayed away from this because they fear increased bureaucracy. However, with a suitable technological solution, companies always have an overview of it,” Rexy continues. ESG platform Synesgy aims to help here.

Synesgy aims to enable simple management, transparent representation and sustainability of supply chains. Synesgy is free to use for all companies for the first year, and additional certifications cost €200 per year. Recsey concludes: “Costs cannot and should not play a role in an important issue like sustainability. The law reinforces corporate responsibility towards their suppliers and helps protect people and the environment. CRIF supports these goals with full conviction and is therefore a platform that helps companies manage its supply chain sustainably.”

www.crif.at