EU Supply Chain Law: Key Supply Chain Consulting Firms

After months of debate, the European Union recently agreed to legislation which will hold companies of a certain size to account for environmental impacts and human rights abuses in their supply chains.

The EU Supply Chain Law, also known as the Corporate Sustainability Due Diligence Directive (CSDDD), is aimed at fostering sustainable and responsible corporate behaviour, while anchoring human rights and environmental considerations in companies’ operations and corporate governance. 

At a basic level, the directive establishes a corporate due diligence duty, the core elements of which are to identify, bring an end to, prevent, mitigate and account for negative human rights and environmental impacts.

These could be within a company’s own operations and those of their subsidiaries, or across their value chains. 

Larger firms will also have to set targets and formulate plans to ensure their business strategy is compatible with limiting global warming to 1.5C – in line with the Paris Agreement.

The CSDDD is set to cover organisations with more than 1,000 employees and turnover of €450m (US$488.2m) – meaning it will affect around 5,400 EU firms.

Meanwhile, non-EU companies must have at least €450m (US$488.2m) in net turnover generated within the union for the new law to apply to them. 

Top CSDDD consulting firms

Many of the world’s leading consulting firms are renowned for their expertise in supply chain management.

They advise businesses on the implementation of solutions that can help them meet objectives, optimise operations, reduce costs, manage risk and, ultimately, drive improved outcomes. 

Here, Supply Chain Digital takes a look at the top global consulting firms which can lend companies a helping hand when it comes to adjusting to the CSDDD.

Accenture

Key person: Kris Timmermans, Lead – Supply Chain Operations

Accenture is a provider of strategy, consulting, interactive technology and operations services with digital capabilities.

Operating in five segments – communications, media and technology, financial services, health and public service, products and resources – Accenture aims to deliver on the promise of technology and human ingenuity, while helping clients to become the next and best versions of themselves.

The firm has a number of technology-enabled services such as AI, cloud and automation, on top of offering technology consulting and innovation.

Specifically in the supply chain space, Accenture offers consulting services in supply chain management, regulatory compliance and digital transformation. 

It is well positioned to help companies leverage technology to enhance transparency in their supply chains, thus ensuring compliance with the incoming EU regulations.

EY

Key person: Glenn Steinberg, Global Supply Chain and Operations Leader

Consulting services offered by EY’s dedicated Supply Chain and Operations team are designed to address complex problems and focus on opportunities to grow. 

Experts are dedicated to redefining the end-to-end supply chain and operations to support enterprise objectives for clients across various industries, including manufacturing, retail, consumer products, healthcare and technology. 

By combining industry expertise with innovative solutions, EY aims to help companies build resilient, agile, sustainable supply chains that drive business success.

One capability of note is the EY Supply Chain Intelligence Platform (SCIP), a global supply chain analytics engine which provides end-to-end visibility to help drive enterprise growth and manage costs. 

SCIP can help cultivate rich insights through quantitative analytics, qualitative performance assessments, process mining and benchmarking across the entire breadth of an organisation’s supply chain. 

Deloitte

Key person: William Kammerer, Supply Chain Lead

Operating as a global professional services network, Deloitte offers audit and assurance, consulting, financial advisory, risk advisory, tax and related services.

The firm, founded in London in 1845, serves a number of industries including energy, life sciences and technology. 

For the technology industry, Deloitte focuses on helping technology companies across the world deal with the demands of adapting their business strategies to succeed in a changing market.

When it comes to supply chain management, Deloitte has a keen focus on regulatory compliance and sustainability and has been vocal in instructing companies to begin preparing their regulatory response to the CSDDD if they have not already done so. 

Its experts are on hand to help clients navigate the European Supply Chain Law so they do not fall foul of the new rules.

KPMG

Key person: Lina Hilwani, Director, Sustainable Supply Chain

KPMG is a network of multinational professional services firms best known for its audit, tax and advisory services.

Thanks to its far-reaching global influence, the organisation has an in-depth understanding of clients’ economic, political, environmental and social landscapes, based on their location.

This means KPMG’s integrated and multi-disciplinary team can offer deep insights and practical business responses to help clients achieve their sustainability goals.

From an advisory perspective, KPMG’s expertise spans strategy and operations, analytics, integrated business planning and digital transformation.

Recognising that businesses may find it intimidating to delve into their supply chains’ human rights record, the firm has been proactive in highlighting key considerations for businesses which are embarking on their human rights due diligence journey.

Capgemini Invent

Key person: Leigh Laramy, VP Supply Chain Strategy and Transformation 

Capgemini Invent is something of a powerhouse in the realm of consulting, innovation, design and transformation.

“We partner with you to transform your supply chain into an intelligent, AI-enabled function that drives enhanced business outcomes,” it says.

Among the benefits it claims this can bring is a 20% increase in working capital, up to 50% reduction in operational costs, up to 15% increase in customer satisfaction and an increase in revenues of up to 5%.

Capgemini Invent can boast a proven track record of enhancing production performance, optimising supply chains and establishing predictive maintenance using data and AI. 

The brand has helped clients consolidate data for Scope 3 emissions – highly relevant to the CSDDD. 

PwC

Key person: Jeremy Howard, Director – Sustainable Supply Chain Lead

PwC helps organisations and individuals create the value they are looking for by delivering quality in assurance, tax and advisory services.

With offices in 156 countries and more than 300,000 employees, PwC supports a number of global clients and is among the world’s leading professional services networks.

In FY21, PwC divisions provided services to 84% of the Global Fortune 500 companies and the company had 90,273 people join its firms.

Amid various disruptions and regulatory change, PwC is helping companies implement capabilities that deliver seamless customer and consumer experience, allowing them to develop connected supply chains. 

Its strong presence in Europe means experts are available to assist with adjustment to the CSDDD’s various environmental and human rights rules. 

McKinsey & Co

Key person: Max Schlichter, Leader – Operations Practice

Global management account company McKinsey & Company is a trusted advisor and counsellor to many of the world’s influential businesses and institutions.

Founded in 1926, McKinsey combines bold strategies and transformative technologies to help organisations innovate more sustainably, achieve lasting gains in performance and build workforces. 

McKinsey harnesses the power of technology to help customers build internal capabilities, integrate digital and analytics tools into their organisations and, crucially, transform the way they work to improve their business in substantial, sustainable ways.

Experts are keen to emphasise the key role of supply chains in powering sustainability transformations, noting that common ESG initiatives almost always involve supply chain components. 

McKinsey is, therefore, well placed to ensure companies are aligning their practices with the rules set out by EU regulations.

Boston Consulting Group

Key person: Dustin Burke, Global Co-Leader – Manufacturing and Supply Chain

Management consulting firm Boston Consulting Group is a global leader in business strategy consultancy.

Founded in 1963, BCG now operates from 80 offices in 45 different countries.

It offers a customised approach based on insights into company and market dynamics and seeks to bring to clients “long-term results, sustainable advantages and organisational growth”.

To further support its clients on sustainability it established the BCG Center for Climate & Sustainability, which brings together 550 experts across challenges including circular economy and transition financing.

One of BCG’s priorities in the supply chain space is helping organisations focus on building resilience and sustainability into their supply chains to mitigate disruptions and trade instability.

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