Due Diligence Checklist

1. Supplier Identification and Mapping

Compile a complete list of all direct suppliers (Tier 1) Map indirect suppliers (Tier 2+) for critical inputs Classify suppliers by size, sector and country of origin Identify suppliers from high-risk countries/sectors Determine each supplier category's share of total procurement Establish a system for tracking changes in the supply chain

2. Environmental Risk Assessment (E)

Request CO₂ emissions data from suppliers (Scope 1 and 2) Verify that suppliers comply with local environmental regulations Enquire about waste management and hazardous materials handling Check certifications (ISO 14001, FSC, PEFC etc.) Request information on water consumption and wastewater management Assess climate risks at supplier locations (floods, droughts) Request a decarbonisation plan or emissions reduction targets

3. Social Risk Assessment (S)

Verify policy prohibiting child labour and forced labour Request evidence of payment of minimum/fair wages Check working conditions and occupational health and safety standards Enquire about freedom of association and collective bargaining Request a non-discrimination and equal opportunities policy Assess the impact on the local community where the supplier operates Check whether worker grievance mechanisms exist

4. Governance Risk Assessment (G)

Request evidence of a code of ethics and anti-corruption policy Check whether the supplier holds certifications or audits (ISO 9001) Enquire about transparency of ownership structure Request references and check business reputation Verify compliance with local laws and regulations Enquire about data protection policy and cybersecurity

5. CSDDD Compliance (EU Directive)

Check which of your EU customers fall under CSDDD obligations Understand CSDDD requirements that cascade to your supply chain Establish a process for collecting ESG data from suppliers Define an action plan for identified risks Establish a grievance mechanism for workers in the supply chain Document the due diligence process for audit purposes Include ESG clauses in supplier contracts

6. Monitoring and Improvement