A Global Strategy House started to face obligations from emerging legislation such as the German Supply Chain Act (LkSG) and EU Corporate Sustainability Due Diligence Directive (CSDDD) (e.g. to perform due diligence on its supply chain for ESG risks). The organization needed to set up a scalable ESG compliance programme, initially focusing on Germany and the UK before transitioning to a global model. The organization sought project management (PM) and change support from Clarasys to establish this programme. Key challenges included regulatory compliance, meeting client expectations, preventing reputational loss, and staying competitive in the ESG risk space
We provided comprehensive project management support for the global programme, ensuring compliance with the German Supply Chain Act. Our team leveraged data and supply chain subject matter expertise to cleanse data and gradually load 20,000 global suppliers onto a tech partner platform for ESG risk assessments. Clarasys also shaped the change and training approach for the programme, considering the needs of approximately 20 different stakeholder groups. Additionally, they contributed to wider deliverables such as the ESG strategy, Target Operating Model (TOM), and Supplier Code of Conduct.
- Achieved compliance with the German Supply Chain Act (LkSG).
- Developed a fully operational complaints line procedure, allowing anyone worldwide to anonymously log ESG complaints on the organization’s webpage.
- Enhanced understanding of ESG risk areas, enabling prioritization of engagement and remediation efforts with suppliers.
- Proposed a Target Operating Model, including three new specialist full-time equivalents (FTEs) with clear roles and responsibilities, allowing the organization to proactively address emerging ESG legislation.
- Appointed a Human Rights Officer to meet regulatory requirements and oversee ESG risk management issues.
