Navigating due diligence challenges: the power of data
Together with Tradin Organic, Fairfood set out to develop a dashboard that answers EUDR and CSDDD uncertainties. This month, we are successfully wrapping up the project. In this article, we share how the outcome of our partnership can support on potentially centralising ESG data and support companies with due diligence demands coming from EU legislation by ensuring traceability, transparency, and competitive advantage in sustainable supply chains.
For EU companies, a lot is changing in the regulatory landscape. With upcoming legislation on corporate sustainability reporting (CSRD), due diligence (CSDDD), and deforestation-free products (EUDR), there is a growing need for:
- Farm-to-fork traceability: Social and ecological sustainability are often tied to what happens at the first mile – the farm. Compliance with legislation, thus, relies on knowing where products come from.
- Data quality and transparency: Making quality sustainability data understandable and accessible is key for creating transparency and trust.
- Database integration: Combining public and company-specific data is needed to make substantiated claims on supply chain sustainability.
- Competitive advantage: As sustainability slowly begins to be the norm, how can a brand distinguish itself from others on sustainability efforts?
Assessing compliance risks
Fairfood and Tradin Organic, with financial support from GIZ, set out to develop a due diligence dashboard as an add-on to Fairfood’s Trace platform. This due diligence dashboard allows companies to combine public and private databases to get a substantial understanding of CSR risks in their supply chains. Moreover, in light of new legislation on deforestation (EUDR), reporting (CSRD) and due diligence (CSDDD), the dashboard allows companies to assess any compliance risks in these chains.
How we do it? We aim to integrate a system that can:
- Centralise Data: Combine all ESG-related data in one centralised platform.
- Visualize Information: Develop visualization tools to present data clearly and effectively.
- Provide Batch Level Responses: Connects to traceability system(s) to address client questions at batch level.
- Enhance Client Satisfaction: Streamline processes to provide timely and comprehensive answers, improving decision-making and client satisfaction.
This dashboard is showing promise as a centralized ESG platform. By bringing together data from for different certifications, and other key ESG indicators that are often scattered across various sources, Navigate has the potential to offer a unified, comprehensive view of impact-related data that could prove valuable for businesses.
Looking for partners!
In an era where regulatory compliance and sustainability are not just buzzwords but business imperatives, this new dashboard serves as more than just a tool—it’s a strategic asset. It not only provides companies with the flexibility to support various regulatory requirements and sustainability standards, but also simplifies data management, ensuring comprehensive data coverage and analysis.
By harnessing the power of data, our platform allows companies to confidently navigate the complexities of the EU’s evolving regulatory landscape and, consequently, enhance decision-making processes. As we conclude this project, the potential for businesses to not only meet but exceed compliance requirements becomes evident.
Want to learn more about this due diligence dashboard or a possible partnership? Join us in making verified impact:
- Josje Spierings, project manager at Fairfood: [email protected]
- Beatriz Daim, sustainability specialist at Tradin Organic: [email protected]
- Johanna Schijvenaars, sustainability specialist at Tradin Organic: [email protected]