Sustainability risks

Due diligence in supply chains focuses on social or environmental risks. These could be:

  • child labour on cocoa plantations or in clothing factories
  • forced labour in the fishing industry
  • hazardous working conditions in leather tanning
  • water pollution after dyeing jeans
  • exploitation around mines
  • exploitative wages on tea plantations
  • greenhouse gas emissions that cause climate change
  • and so on

Unfortunately, the list is endless. The good news is that companies can make a difference.


Mapping risks

Once you have identified the top countries from where you purchase raw materials, semifinished products or services, the next step is to map the sustainability risks associated with them. Fortunately, you do not have to start from scratch, as there is a lot of knowledge available. A quick internet search can provide valuable results. You can also explore the ‘useful tools’ section to access tools and relevant websites. Suppliers usually have a better understanding of sustainability risks associated with the product or country, so be sure to engage with them.



Prioritise potential or actual negative impacts

There is usually a long list of social and environmental risks. It is not possible to effectively address all of them at the same time. That is why you may prioritise.


To prioritise risks, you identify the severity and likelihood of adverse impacts, with severity being the more important factor. You must always prioritise the most serious risks, even if they are unlikely to occur. The severity of a risk is determined by the scale, scope and remediability.

  • Scale: Scale refers to the gravity of the impact.
  • Scope: Scope refers to the number of affected individuals.
  • Remediability: Remediability refers to the extent to which damage can be reversed (or not).

Risks with a significant impact, broad scope and irremediable character should be addressed first. Instead of prioritising risks alone, engage with stakeholders such as non-governmental organisations, trade unions, experts, suppliers and buyers. Once you have addressed the most severe and probable risks, you can start looking at the next risks. Prioritisation is about putting risks in order of severity – it is not about postponing action.

Handige hulpmiddelen

  • The Open Supply Hub: is a tool that provides companies in the textile sector with data on suppliers. This enables companies that buy from the same supplier to collaborate and improve supply chains together
  • CSR Risk Check: a tool which helps businesses to find out which international CSR risks their activities are exposed to and what they can do to manage them.