{"id":99943,"date":"2024-04-18T16:16:35","date_gmt":"2024-04-18T14:16:35","guid":{"rendered":"https:\/\/www.KGM Strategy.com\/?p=99943"},"modified":"2024-09-16T10:50:50","modified_gmt":"2024-09-16T08:50:50","slug":"the-impact-of-the-due-diligence-legislation-on-procurement-in-the-consumer-industry","status":"publish","type":"post","link":"https:\/\/www.KGM Strategy.com\/en\/insights\/the-impact-of-the-due-diligence-legislation-on-procurement-in-the-consumer-industry\/","title":{"rendered":"The impact of the due diligence legislation on procurement in the consumer industry"},"content":{"rendered":"

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On March 18 the EU Supply Chain Act has finally been adopted \u2013 with short-term amendments and despite Germany\u2019s abstention. There is now clarity for companies. Many European businesses, which are on the front lines of implementing the Corporate Sustainability Due Diligence Directive (CSDDD), had already started preparing for the regulations. Our latest study sheds light on how far German and French businesses have come and explores the complexities and challenges encountered.<\/strong><\/span><\/p>\n

Download results presentation<\/a><\/p>\n

Consumer companies face the dual challenge of adapting to the Due Diligence Directive while navigating an increasingly complex market: inflation has been a critical issue, while consumer spending habits have dampened. Shopping methods have changed, with a notable pivot from physical shops to digital platforms. Moreover, the luxury sector, heavily reliant on Chinese consumption, is predicted to face significant challenges within the next two to three years. The volatility in raw material costs<\/strong>, in particular in food commodities, further complicates this scenario, underscoring cost management as a fundamental concern<\/strong>.<\/p>\n

When it comes to ESG, consumer companies are notably further advanced in their initiatives compared to their counterparts in other sectors. This advancement is driven by several factors, including stringent legal requirements<\/strong> e.g. in the food industry and a growing demand for transparency<\/strong> from consumers.<\/p>\n

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\n Key results for the consumer industry\n <\/h3>\n\n
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  • Consumer companies currently prioritize the financial performance of procurement ahead of ESG aspects.<\/li>\n
  • At least 80% of respondents feel that their company already has or is in the phase of implementing due diligence requirements. This is mainly driven by regulation, before corporate social responsibility or consumer perception.<\/li>\n
  • Yet, 37% of respondents from the industry claim that they are not well informed about the new EU regulation. This lack of awareness is also shown by the 34% of respondents not knowing whether the current national legislation affects their company.<\/li>\n
  • In the long term, 74% of Consumer companies expect a positive impact regarding social and environmental responsibility from the EU directive.<\/li>\n
  • Upgrading skills is the number one expectation of companies: through training, recruitment, and external expertise.<\/li>\n<\/ul>\n\n <\/div>\n\n \n <\/div>\n <\/div>\n<\/div>\n\n\n

    The detailed results and recommendations for action are freely available for download. You can choose among an industry-wide analysis and a presentation tailored to the consumer industry:<\/p>\n

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