Governance / Portfolio: Supply chain management
Supply chain management
For companies operating in today’s global economy, the sustainability of their supply chains is increasingly important for long-term resilience, commercial viability and regulatory compliance.
As the regulatory landscape evolves, companies are now expected to have great visibility and control over their value chain, rather than just direct operation. Several regulations are reshaping how businesses must assess and manage sustainability risks within their supply chains including the EU’s Corporate Sustainability Due Diligence Directive (CSDDD), Corporate Sustainability Reporting Directive (CSRD), and Deforestation Regulation (EUDR), the German Supply Chain Act, and the US Uyghur Forced Labor Prevention Act (UFLPA).
These regulations will require companies to identify, monitor, prevent and mitigate adverse human rights, and labour and environmental impacts as well as managing carbon emissions and the effects on biodiversity.
We believe that companies that act early to strengthen supplier engagement, build robust due diligence frameworks and implement traceability systems will be better equipped to comply with regulation, avoid costly disruptions, and meet growing demands from customers, investors and other stakeholders.
Beyond regulatory obligations, we believe that compliance, building sustainable supply chains can enable preferred supplier status, enhanced brand reputation, operational efficiencies and alignment with global procurement standards.
Image: Alessi
Image: Alerce
Image: Phenna Group
Spotlight: Building responsible supply chains across the portfolio
Oakley has been working to support a number of portfolio companies to learn more about supply chain risk management and take the first steps to analyse their suppliers.
In 2024, Oakley worked with an adviser to conduct a supply chain risk analysis pilot project for six companies in our portfolio with complex supply chains. To conduct this assessment, portfolio companies sent information on their most material suppliers and our adviser conducted an adverse media scan and risk exposure assessment to generate supplier scorecards for each supplier. As part of this project, portfolio companies also had access to an online training platform on topics including human rights and engagement strategies. At the end of the project, each portfolio company had a 1:1 session with the adviser to discuss the results of the assessment and potential next steps. This initiative not only provided valuable insights into potential risks within portfolio companies' supply chains but also equipped them with practical tools and knowledge to strengthen supplier oversight and improve resilience.
In addition to this project, Oakley hosted a webinar with an adviser for portfolio company sustainability leads and procurement teams to learn more about human rights, the regulatory landscape for the supply chains, as well as stakeholder expectations and practical actions with a tangible case study on supplier engagement.
Following these projects, the Oakley Sustainability Team has worked with portfolio companies to develop a supplier code of conduct and discuss supplier engagement strategies.
Together, these initiatives have helped portfolio companies build foundational knowledge, assess key risks, and take tangible first steps towards more responsible and resilient supply chain practices.
6
companies participated in a supply chain risk analysis pilot project
20,000+
suppliers assessed in the supply chain risk analysis pilot project