Key Takeaways
- FoodChain ID and &Wider launch a risk-based worker condition monitoring service to support responsible sourcing and due diligence.
- The service helps global brands comply with the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD).
- FoodChain ID provides certification and auditing expertise, while &Wider supplies scalable technology and data for monitoring worker engagement.
- The partnership enables early identification of labor risks, improving transparency and ESG compliance for businesses.
Strengthening Social Audits for Global Supply Chains
Addressing Growing Regulatory Demands
The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) and Corporate Sustainability Reporting Directive (CSRD) have introduced stricter requirements for businesses operating in the EU. Companies must now identify, monitor, and mitigate human rights and social risks within their operations and supplier networks.
A Collaborative Approach to Risk-Based Monitoring
To meet these demands, FoodChain ID, a leader in certification and sustainability services, and &Wider, a due diligence data company specializing in worker engagement, have joined forces. Their new monitoring and auditing service offers brands greater visibility into working conditions, ensuring they remain compliant while improving overall supply chain transparency.
“FoodChain ID brings over 25 years of experience in sustainability services and auditing to our partnership with &Wider,” said Dr. Chetan Parmar, Senior Vice President of Technical Services for Europe and Asia at FoodChain ID.
Navigating Compliance with the CSDDD and CSRD
What is the Corporate Sustainability Due Diligence Directive (CSDDD)?
The CSDDD mandates that large corporations conduct due diligence to detect and address human rights and environmental risks throughout their supply chains. Companies must establish mechanisms to identify, prevent, mitigate, and account for their social and environmental impact.
What is the Corporate Sustainability Reporting Directive (CSRD)?
The CSRD requires companies to provide detailed sustainability reports, including social audits and disclosures on environmental and human rights performance. Companies must undergo independent verification to ensure the accuracy of their reports.
How the Partnership Supports ESG Goals and Compliance
Combining Data with Auditing Expertise
Through this partnership:
- &Wider collects and analyzes real-time worker engagement data, highlighting potential labor concerns before they escalate.
- FoodChain ID uses this data to conduct targeted social audits, ensuring compliance with CSDDD and CSRD requirements.
- Businesses gain enhanced risk assessment tools, early warnings of supplier issues, and ongoing ESG data to support responsible sourcing.
“The CSRD mandates audits to ensure the credibility and accuracy of social metrics disclosed by companies,” added Dr. Parmar.
Proactive Risk Management for Supply Chains
By leveraging real-time insights from worker engagement surveys, businesses can:
- Identify labor issues before they escalate
- Improve risk prevention strategies
- Ensure suppliers align with sustainability commitments
- Avoid regulatory penalties under EU laws
Leveraging Technology to Improve Worker Engagement Monitoring
The Role of &Wider’s Scalable Data Technology
&Wider specializes in gathering and analyzing worker engagement data, using:
- Direct surveys with workers to understand workplace conditions
- Data-driven insights for early risk detection
- Automated reporting tools for compliance with sustainability standards
Lea Esterhuizen, founder and CEO of &Wider, emphasized the importance of robust data management systems under EU directives.
“The EU Directives require transparent and accountable risk prevention and mitigation of worker exploitation,” said Esterhuizen. “The &Wider methodology exposes working conditions along global supply chains to protect workers and businesses.”
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