Five Supply Chain Questions on Members’ Minds
Preview
Introduction
Across industries, companies are navigating a shared set of supply chain challenges driven by evolving regulations, data scarcity, and diverging stakeholder expectations on sustainability positioning and performance. While approaches vary, consistent themes are emerging in the questions members are raising and the barriers they are encountering. Below are five of the most pressing supply chain sustainability questions we’ve received over the past few months.
How do we keep up with evolving regulatory requirements and reporting expectations across the value chain?
Companies are grappling with a rapidly shifting and increasingly fragmented regulatory landscape that is creating uncertainty around reporting and compliance, while BSR members seek clarity on how to navigate evolving regulatory requirements (e.g., Omnibus, CSRD, CSDDD, value chain cap). Key challenges include managing supply chain data limitations, understanding assurance expectations, and addressing fragmented reporting obligations. Companies are working to improve internal coordination, streamline reporting approaches, and align supplier requirements where possible to reduce duplication and complexity.
BSR’s Future of Reporting Collaboration regularly digs into these complex and ever-shifting questions, and our reporting experts can provide insight on navigating these dynamics.
How can we gain better visibility into complex, multi-tier supply chains?
Limited visibility beyond Tier 1 suppliers continues to constrain companies’ ability to manage risks and measure impact. Many companies trace supply chains only to Tier 1, due to contractual limitations and a general lack of transparency of commercial relationships in supply chains. This makes it difficult to map deeper tiers and collect consistent, reliable data across suppliers, which causes weak data integrity across the supply chain. At the same time, suppliers—especially smaller ones—are facing growing pressure from fragmented and duplicative data requests. Companies are exploring new tools, AI, partnerships, and approaches to improve traceability and streamline data requests in order to reduce the burden on suppliers.
BSR’s Supply Chain Risk Management Tools and Platforms Deck, available on the member portal, outlines key tools for traceability.
How do we effectively engage and support suppliers meaningfully?
Engaging suppliers in meaningful ways remains a persistent challenge. Members are actively testing approaches to strengthen supplier engagement and build capacity across their value chains. Efforts include piloting programs, offering training and incentives, and fostering closer supplier relationships. Challenges remain around engaging suppliers on Scope 3 emissions, having limited leverage with certain suppliers, and identifying practical, targeted approaches that drive impact. Recently, we covered how to effectively engage suppliers on greenhouse gas (GHG) emissions, including critical steps such as getting internal buy-in, integrating engagement into existing procurement processes, having two-way dialogue with suppliers and supporting them on the journey, and finally, recognizing strong action.
BSR developed the 1.5°C Supplier Engagement Guide in collaboration with the Exponential Roadmap Initiative as a tool that companies can use to ensure successful supplier engagement approaches.
How can we integrate human rights and environmental due diligence?
Members are advancing human rights due diligence efforts in their supply chains, including strengthening audits and developing longer-term risk mitigation strategies for critical human rights risks. Many members are seeking clarity on integrated human rights and environmental due diligence, and how the impacts should be mitigated in concert. Uncertainty around evolving regulatory expectations adds further complexity, particularly in how due diligence requirements may shift over time.
BSR helps members through multi-stakeholder engagement, integrated due diligence processes and tools, and insights, including on how to take an integrated approach to climate and human rights under CSDDD and across regulatory compliance efforts.
How do we align procurement practices with sustainability goals?
Members are working to better align procurement practices with sustainability goals, including integrating sustainability criteria into supplier selection and codes of conduct. Some companies are navigating challenges related to procurement team incentives (cost-driven) being misaligned with sustainability objectives, as well as challenges related to resource constraints internally, limiting the ability to drive progress. Efforts to strengthen collaboration between procurement and sustainability teams are critical for the success of the company and the prevention of negative impacts across the value chain. Overall, global challenges in supply chains are leading companies to rethink their sourcing strategies and procurement models, where sustainable sources are mentioned as more robust and secure. BSR supports members on this work via our Value Chain Leadership Ladder tool, and through support on refreshed governance, processes and policies, and roadmaps.
As these challenges continue to evolve, companies are looking for practical ways to move forward while navigating complexity and uncertainty. BSR is supporting members by creating space to share experiences, unpack emerging issues, and identify actionable approaches through resources, working sessions, and ongoing collaboration. We aim to support members by providing clearer pathways and tangible insights to help companies advance their supply chain strategies.
BSR members have the exclusive opportunity to explore these questions and more during BSR Supply Chain Office Hours. Bring your own questions to our May and June sessions.
Not a BSR member? Contact us and we’ll connect you with one of our Relationship Leads to learn how membership can help you navigate supply chain challenges in this turbulent environment.