In an era of Assurance 4.0 – the new era of risk management - Environmental, Social and Governance (ESG) issues are the focuses of media exposés and public scrutiny, and businesses are under increasing pressure to ensure their commodities are being produced ethically and sustainably. Traditional auditing methods, while necessary to monitor supplier risks, are no longer sufficient to meet the growing complexity and regulatory demands of today's global marketplace. This is where LRQA's supply chain due diligence platform, EiQ, comes in, revolutionising how companies manage their responsible sourcing risks.
Beyond audits: The power of data-driven decision making
Audits have long been the cornerstone of supply chain risk management. However, they often provide only a snapshot in time, leaving businesses vulnerable to emerging risks that can occur between audit cycles.
EiQ transforms this approach by integrating continuous, data-driven decision making into the risk management process. By leveraging a wealth of data sources from a robust dataset of more than 20,000 audits per year and trusted civil society research, EiQ offers real-time insights and comprehensive analysis, enabling companies to proactively identify and mitigate risks before they escalate into major issues.
Progressive risk management with EiQ
As global supply chains become increasingly complex, the need for robust due diligence has never been more critical. Regulatory frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD), Germany’s Supply Chain Due Diligence Act, and forced labour regulations in regions like the EU, US, and Canada demand stringent compliance and transparency. EiQ helps companies navigate these regulatory landscapes by providing the tools needed to ensure adherence to these requirements. By automating and streamlining the due diligence process, EiQ allows businesses to focus on strategic decision making rather and gaining greater visibility over supply chain partners and their corresponding risks.
Introducing Sentinel: scanning suppliers for adverse media
A key feature of EiQ is Sentinel, an advanced tool that scans suppliers for adverse media instances. A single negative news report can significantly impact a company's reputation and financial standing, especially as media reports are increasingly surrounding forced labour and child labour investigations in global supply chains. Sentinel continuously monitors global news sources and flags any adverse media mentions related to suppliers, covering more than 250,000 entities each month. This proactive approach enables companies to respond swiftly to potential issues, maintaining the integrity of their supply chains and safeguarding their brand reputation.
Receive a free trial scan of your suppliers with Sentinel
Proactive management of responsible sourcing risks
With EiQ, companies can transition from reactive to proactive risk management. The platform's robust analytics and reporting capabilities provide a holistic view of the supply chain, highlighting areas of potential risk and offering actionable insights for improvement. This proactive stance not only helps in mitigating immediate risks but also in building a more resilient and sustainable supply chain in the long run.
EiQ further enhances risk management by providing detailed risk scores for sourcing regions, products, and individual suppliers. These scores offer invaluable insight into the level of risk exposure associated with each element of the supply chain. Derived from from-the-ground data and supplemented with trusted public domain data, these scores enable businesses to make informed decisions and prioritise areas that require immediate attention. By understanding the specific risk factors associated with their supply chain, companies can better allocate resources and implement targeted strategies to mitigate potential issues.
Meeting and exceeding regulatory requirements
The increasing regulatory scrutiny of supply chain practices requires companies to maintain impeccable records and demonstrate compliance with various standards. EiQ simplifies this process by providing a centralised platform for all due diligence activities. Its comprehensive reporting tools ensure that companies can easily compile and present the necessary documentation to regulatory bodies, thereby avoiding penalties and enhancing their compliance posture.
EiQ is more than just a supply chain due diligence platform; it is a strategic tool that empowers businesses to meet the challenges of modern responsible sourcing. By integrating data-driven decision making and leveraging tools like Sentinel, EiQ enables companies to proactively manage their ESG risks and stay ahead of regulatory requirements. For businesses looking to build resilient, ethical, and compliant supply chains, EiQ offers the innovation and support needed to thrive in today’s complex global market.
Contact us to learn more about how you can use EiQ to enhance your responsible sourcing approach.
