One day conference: Supply Chain Due Diligence – Best Practices and New Challenges

10 May 2022

The meeting place for professionals who want to be inspired on best practices in Supply Chain Due Diligence and understand the challenges linked to the upcoming, mandatory EU supply chain Due Diligence directive.

Get your insights: How do the developments in the EU relate to the German Lieferkettengesetz? What can we learn from the voluntary due diligence experiences of international business leaders and experts? How to build up a Supply Chain Due diligence as lean as possible? How to set you priorities on human rights or environmental impacts and how to start? How does Supply Chain Due Diligence influence your profit and loss?

SUPPLY CHAIN DUE DILIGENCE: BEST PRACTICES AND NEW CHALLENGES

Making money and doing good must and can go together: but how?!

Understanding and managing sustainability risks in supply chains is already done by some organizations voluntarily. With the German Lieferkettengesetz effectively entering into force in 2023 and the upcoming EU Corporate Sustainability Due Diligence Directive, transparent supply chains and impact measurements become a must for most companies – directly and indirectly. Implementing  these supply chain due diligence requirements has a potential financial impact on the contractual arrangements with suppliers. The continuous battle between decreasing prices and focus on margins versus sustainability improvements and long term supply chain commitments, will become more apparent. Companies will be forced to review their buying strategy and practices. Making money and doing good must and can go together: but how?!

ImpactBuying GmbH and Mayer Brown are delighted to bring executives and industry specialists together to take a deep-dive into the impact of the upcoming EU Corporate Sustainability Due Diligence Directive. In this in-person event international thought leaders from governments, NGO’s, retail, FMCG industry, auditing and certification as well as IT will share their experience and vision about supply chain due diligence and its impact on the daily operations.

The first 2022 edition will take place in Dusseldorf on the 10th of May at the van der Valk hotel at Dusseldorf Airport.

Some presentations will be in English and there is a simultaneous German translation available.

Who is it for?

  • EExecutive board members
  • ECSR professionals
  • EIT managers looking for Supply Chain Due Diligence tools
  • EAuditors & communication departments responsible for integrated reporting
  • ELegal advisors
  • EQuality/risk managers

Program Highlights

Shaping a one-day program with learnings, inspiration and support for executives and professionals from organizations that are at the forefront of sustainable supply chains. Every facet of due diligence in supply chains will have its turn in the spotlight through a series of inspirational keynotes, plenary sessions and an expert panel, in which we will deep dive into the practical and legal impact of implementing due diligence.

Program: Plenary: 9.00 until 17:00

9.00-9.10 Opening and welcome by the moderators

Marjan de Bock-Smit: Co-CEO at ImpactBuying group
Stephan Tromp: Deputy Chief Executive at the German Retail Association (HDE)

9.10-9.30 Setting the Scene

Marjan de Bock-Smit: Co-CEO at ImpactBuying group
Stephan Tromp: Deputy Chief Executive at the German Retail Association (HDE)

Managing sustainability risks in supply chains is new for some companies while others have been asking suppliers already for years to sign Code of Conducts as part of their contracts. Demanding social compliance audit reports or certificates to prove compliance. The core of supply chain Due Diligence is to demonstrate what you have done about the sustainability risks in your supply chain. NGO’s and the media have taken the role as watch dogs. Voluntarily, companies started with (integrated) reporting about their actions. With the upcoming legislation supply chain due diligence becomes mandatory. Companies need to prepare themselves and that requires strategic decisions that might have an potential impact on profit and loss. What aspects do companies need to take into account?

9.30-10:00 Interpretations of the up-coming EU Corporate Sustainability Due Diligence Directive

Alexandra van Selm: Program Director International Responsible Business Conduct at the Social and Economic Councel (SER)

 

What is core in the requirements of the implementation of the new EU corporate sustainability directive? How does it link to local laws like the Lieferkettengesetz? The SER was one of the stakeholders that contributed to the content of the new EU Corporate Sustainability Due Diligence Directive and therefore capable to share a vision about the expectations of this new EU directive. The SER is also hosting several industry commitments on supply chain due diligence like the food-and textile covenant. What are the learnings from companies that signed a commitment to work on due diligence issues in a certain industry together? Is it effective to join forces with your competitors to jointly improve sustainability issues in an industry sector?

10:00-10:30 The draft EU Corporate Due Diligence directive versus the German Lieferkettengesetz

Johannes Weichbrodt: Partner at Mayer Brown

The German Supply Chain Act (Lieferkettensorgfaltspflichtengesetz or Lieferkettengesetz for short) will effectively enter in to force for large companies in 2023, and for even mid-size ones in 2024. It requires to implement a robust sustainability risk management, particularly with a view to own operations and direct suppliers, but also beyond. It covers a brought range of human rights and environmental risks. The EU draft directive mirrors much of the German law but goes in some instances even further. For instance, it will likely apply to even more (smaller) companies and may fully cover the entire supply chain. This session will provide an overview on the differences and how to deal with these when setting up a comprehensive sustainability risk management system. What will be needed as a bare minimum and what will likely become gold standard and how can it be implemented with reasonable efforts?

10.30-11.00 What is the influence of living wage on human rights issues in international supply chains?

Jordy van Honk: Global Director Agri Commodities at IDH (the sustainable trade initiative)

Several large organisations are making the commitment to pay workers in their supply chain a living wage and IDH is leading the living wage roadmap. What is living wage and what makes it so challenging to implement this in International supply chains? What are the learnings from the living wage commitments that are running in the tea and banana supply chains? Is it possible for buyers to close the living wage gap of the workers on the locations of their suppliers? Does closing the living wage gap impact the profit and loss? Can you communicate the issue of living wage with consumers?

11:00-11:30 Coffee break

Sharing experiences and solutions

11.30-12.00 Risk management versus due diligence in an international retail environment

Leon Mol: Director Product Safety & Social Compliance at Ahold Delhaize

As an internationally operating retailer that is listed, Ahold Delhaize started eleven years ago to map their supply chains and requiring suppliers in high risk countries to deliver a Social Compliance audit report. What did they learn from implementing transparency in their supply chains? How did the suppliers react when asking for evidence linked to human rights? The development of the Ahold Delhaize due diligence policy started 4 years ago. Adding an extra layer of analysis of the human rights and environmental risks in Worldwide supply chains. How did Ahold Delhaize set the priorities? What are the learnings? What is the potential effect of the new Due Diligence directive on the steps that Ahold Delhaize already has accomplished? Where does Ahold Delhaize see the challenges? Is there a business case?

12.00- 12.30: Overview of IT solutions for managing Supply Chain Due Diligence data

Walter Stiers: Senior Domain architect at Surtil

In order to manage the data linked to the due diligence related supply chain risks, companies will look for IT solutions. Benchmark experts for IT solutions like Gartner have created an overview of the existing tools available for managing supply chain due diligence risks. Everyday new IT solutions are presented that focus on transparency and on traceability. Which IT tools are available on the market that can be used for managing supply chain due diligence risks? What should a company take into account when choosing an IT tool for managing supply chain risks? What are the pitfalls when implementing such supply chain due diligence tools in existing IT landscape?

12.30-13.30 Delegates lunch & networking
13.30-14.00 Experiencing the transformation of the pig supply chain

Bert Urlings: Director corporate affairs and quality assurance at Vion Food group

As one of the largest meat processors and cooperatives in Europe, VION experiences the pressure coming from NGO’s, shareholders and stakeholders when it comes to sustainability. Especially with regards to animal welfare, use of antibiotic, deforestation linked to soy and a fair price for the farmers which are high on the agenda. VION took the initiative to set up a blockchain based meat chain with a carbon footprint calculator in close cooperation with a leading retail client. Why did VION made that choice? What was the process and does it really transform the Dutch pig supply chain? What are the expectations for the future?

14.00-14.30 The Impact of the ESG Reporting Requirements and its Interplay with the Supply Chain Due Diligence Legislation

Marcel Hörauf: Counsel at Mayer Brown
Luisa Dany: Associate at Mayer Brown

Based on the European Commission’s Renewed Strategy for Financing the Transition to a Sustainable Economy, the European legislator developed several regulatory measures to enhance transparency by providing more and better data and to strengthen investor confidence in the ESG market over the last years.

With the proposal for a Corporate Sustainability Reporting Directive (CSRD), the EU plans to significantly expand the scope of the existing Non-Financial Reporting Directive (NFRD) and to supplement the disclosure requirements with a uniform reporting standard. This will lead to new challenges for many companies in and outside the EU, which we will present this session. We will particularly address the nexus to the proposal for the Corporate Sustainability Due Diligence Directive and how to comply with the reporting obligations of both pieces of legislation most efficiently.

14:30-15:00 The role of audit and certification programs for Supply Chain Due Diligence

Nina von Radowitz: Head of Corporate Responsibility at METRO AG

For years METRO has already been working on corporate responsibility in their supply chains. What is the role of audit and certification programs in managing sustainability risks in supply chains? How can initiatives like CGF SSCI (Sustainable Supply Chain Initiative ) help organizations to understand the quality of standards? Which approach has METRO chosen with regards to audit and certification standards, to help preventing/mitigating human rights related risks in their supply chain? Do you expect standards to help you fulfilling your legal obligations as from the German LkSG? How do you foresee the cost development due to supply chain due diligence obligations on all supply chain partners?

15.00-15.30 Coffee break
15.30-16.00 Presenting the supermarket scorecard and sharing findings on Oxfam's latest study on labour- and human rights violations in Costa Rica and South-Africa

Tim Zahn: Policy advisor Human Rights in Global Supply Chains Oxfam Deutschland

Oxfam Germany is an independent development and aid organisation that works to achieve a world without poverty. They analysed leading suppermarket’s policies and practices on human rights in their supply chains. How are these supermarkets scoring on transparency and human rights? The newest supermarket scorecard will be presented. As well as learnings from the latest studies on labour- and human rights violations in Costa Rica and South-Africa. What can we learn from both studies and where do you stand according to human rights?

16:00-16:45 Panel discussion: Can doing good and making money go together?

Kristina Areskog Bjurling: Director sustainability at Axfood Sweden

Ulla Hüppe: Head of Sustainability at Henkel Adhesive Technologies

Leon Mol: Director Product Safety & Social Compliance at Ahold Delhaize

Jordy van Honk: Director at IDH (the sustainable trade initiative)

Leontien Hasselman: Co-CEO at ImpactBuying

Under guidance of the moderators industry experts are going to dive into existing examples and sustainable business cases. Responsible sourcing is the key to create more sustainable products and supply chains. Retailers and brands have a moral obligation to use their buying power for good. Are there companies and solutions that prove it is possible to do good while doing good business? The biggest positive impact can often be made in the first mile. What are the examples that monetize sustainability efforts throughout the supply chain towards the consumer? How do we transform supply chains and move to long term supply chain commitments and sustainable margins for all actors? Compliancy is the start but who is already moving beyond compliance and are there legal implications to that?

16.45-17:00: Closing remarks and end of conference

Our speakers

Marjan is a risk management professional and has always been on the forefront of developments in the fast-changing international consumer goods market. She founded Précon Food Safety Systems (market leader in the implementation of risk management systems HACCP) and ISACert, an accredited Certification Body represented in 16 countries. With her knowledge and insights of international supply chain practices and sustainability risks, she founded SIM Supply Chain and two years ago she founded ImpactBuying together with her business partner Leontien. Both companies have now merged into one under the name ImpactBuying.

Stephan has over 25 years’ experience as managing director of a limited company and as an association director. He is the acting managing director of the German Trade Association (HDE) and is simultaneously the director of the associations’ subsidiary companies – HDE Trade Services GmbH and IFS Management GmbH. He is well versed in the political processes as well as in the economic management of companies.As part of the German Trade Association (HDE), one of the areas he is responsible for is the interdisciplinary topic of digitalisation. A further focus of attention is the development and management of internationally oriented services, especially in the field of quality assurance. Thus in 2002 he established IFS (www.ifs-certification.com), an auditing standard used worldwide by trade and industry for supplier assessment. His key areas of expertise are in the fields of business development and IT / digitalisation and his activities are always internationally oriented.

Leontien is trained in business and environmental law and started her career at the United Nations Environmental Program (UNEP). She spent ten years at the Global Reporting Initiative (GRI), which is the standard for non-financial performance and impact reporting in global supply chains. In 2014, Leontien and Marjan met and she started as the Managing Director of SIM. After that, they co-founded the ImpactBuying Group together with the goal to expand their ambition to help companies using their buying power to make proven positive impact..

Alexandra is Program Director for International Responsible Business Conduct at the Social and Economic Council of the Netherlands (SER). The SER is one of the main advisory bodies of the Dutch government and consists of employers’ representatives, union representatives and independent experts. Alexandra heads a department that facilitates and implements multistakeholder sector agreements on international business conduct and sustainable supply chains, based on the OECD Guidelines for multinational companies and the UN Guiding Principles on Business and Human Rights. Previously, she was Deputy Director of Social Affairs and Senior Policy Officer in the Department of Economic Affairs at the SER and worked as an advisor to the Netherlands National Contact Point of the OECD guidelines. Before she joined the SER, Alexandra worked in the area of sustainable business and sustainable development from a variety of perspectives at ECORYS-NEI, the World Bank, and UNDP in China. She holds a MSc in Economics and a BA in Politics, Philosophy and Economics.

Dr. Johannes Weichbrodt, LL.M. (King’s College London) is a partner in the Düsseldorf office of Mayer. He advises on all aspects of European and German antitrust and competition law and helps clients with all kinds of compliance issues. He focusses on cross-border internal investigations and compliance programs. His litigation experience includes proceedings before the German courts as well as the European Court of Justice. Johannes has a particular focus on ESG and CSR compliance work and has been publically speaking and writing extensively on this in generally and specifically on the German Supply Chain Act.

Tim works with Oxfam Germany as a policy advisor on human rights due diligence in global agricultural and food supply chains with a special focus on migrant labour. Before joining Oxfam Tim coordinated the civil society organizations within the Partnership for Sustainable Textiles (“Textilbündnis”). He holds a master degree in sustainable development and in his master thesis he analyzed the impact of a certification standard for textiles.

Leon was educated as an agronomist at Wageningen University. After having worked in the potato supply chain, Leon was employed as Agronomist at Albert Heijn (The Netherlands) working on long term availability and sustainability of fresh fruit & vegetables, flowers and plants, with an emphasis on food safety and social compliance. Now, Leon is Director Product Safety & Social Compliance at Ahold Delhaize. The (global) scope of the activities includes product safety, social compliance, animal welfare and sustainability of animal and plant related products.

Walter is an information architect, with a broad background in sciences, business and industries, information technologies and processes and arts. He was used to work for IBM Belgium and Microsoft BeNeLux. During his last stage he was part of the customer and ecosystem support for a variety of enterprise projects and industry initiatives in segments such as Retail, FMCG, Distribution, Logistics, Agriculture, Manufacturing, Chemistry&Petroleum, Media. His focus was on e.g. SOA, SOMA, Enterprise Architecture, Cloud, DevOps, Microservices, RedHat, Blockchain, Design Thinking. One focal point was IBM Blockchain solutions and ecosystems like e.g. Tradelens, Food Trust and FarmerConnect.

Bert is educated as veterinarian at the Utrecht University and received his Ph-D on food safety in 1992 (Utrecht University). Bert is a diplomat of the European College of Veterinary Public Health. Both his education and his career is fully dedicated to veterinary science and the wholesomeness of food of animal origin for men. He had different positions in scientific research on the safety of food of animal origin, at Utrecht University (1986-1998) and at the Dutch Central Veterinary Institute (1998-2002), Wageningen University. After the publication of the EU “White Paper on Food Safety” in 2002 Bert went to the food industry as corporate director Quality Assurance of Vion Food. In this position he is responsible for food safety, product integrity, system certification, animal welfare and health.

Marcel is counsel in the Frankfurt office of Mayer Brown’s Capital Markets and Financial Services Regulatory practice. He advises on banking supervision and financial services regulatory law. Marcel counsels domestic and global financial institutions as well as corporations on a variety of regulatory matters relating to the regulation of the OTC derivatives markets, CCP clearing and the financial market infrastructure, capital requirements and credit risk mitigation techniques under the CRR, outsourcing and issues of banking recovery and resolution law. Digitalisation and innovation projects in the areas of financial services and payment services, DLT, FinTech and legal tech are among his other areas of focus, in addition to cross-border banking M&A transactions. Marcel regularly advises on various aspects and regulatory developments in the area of Environmental, Social & Governance (ESG).

Luisa-Sophie is an associate in the Capital Markets and Regulatory practices in Mayer Brown’s Frankfurt office.

She advises German and international clients on debt issuance, structured products and derivatives. Her practice also focuses on regulatory aspects surrounding these Capital Markets Products. One specific area of her focus are the regulations regarding Sustainable Finance.

Nina is a lawyer and started working at METRO in 2006 as Head of Regulatory Affairs. After working on Corporate Public Policy topics mainly with EU bodies and being the Vice Chairman of the Food and Consumer Policy Committee of EuroCommerce (EU retail federation) she stepped into the field of Corporate Responsibility. Since 2011, as Head of Corporate Responsibility, she contributes to sharpening METROs CR strategy as well as positioning METRO with its CR approach on the international floor e.g. with Consumer Goods Forum. Since 2015 Nina is also responsible for the Social Compliance Management in METRO’s Supply Chain and still drives forward METRO’s CR strategy development as well as sustainability related communication and reporting topics. Last but not least Nina collaborates with METRO’s HR team e.g. on integrating sustainability aspects in leadership development programs.

Kristina is a Human Rights Due Diligence specialist, involved in sustainable supply chains from right after her studies at Stockholm University. As sustainability manager at Axfood, she is taking care of responsible sourcing and impact assessments and projects in risk-countries such as Thailand, China, Cambodia, Pakistan and Morocco. After informing consumers about sustainable and ethical trade at the Fair Trade Center she was used to do research on corporate responsibility in global supply chains and public advocating on Business & Human Rights in different industry sectors.

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