Supply chain risks and ESG compliance

The introduction of a compliance-related approach to financial crime enforcement, where liability may be triggered by actions far down a supply chain, will likely be applied to ESG concerns too

In the past decade, financial crime enforcement has been transformed by the introduction of compliance-based offences that hold companies liable for actions that occur throughout the supply chain. Crucially, however, companies that can demonstrate they have established procedures and controls to mitigate such risks may avoid prosecution.