Processes
Check

“Studies show that companies operating responsibly and sustainably earn the trust of customers and investors, driving long-term success. Managing environmental, social, and governance (ESG) supply chain risks can be challenging for medium and smaller enterprises. The new IFS ESG Compliance Check empowers them to effectively tackle these issues. With validated check results, these businesses gain a comprehensive overview, confidently demonstrate their commitment to stakeholders, and set ambitious future goals.”

Stephan Tromp, IFS Managing Director

ESG management is the next step to responsible stewardship

Environmental sustainability, social responsibility, and governance (ESG) issues play a key role in the long-term success of businesses. Consumers, employees, and investors increasingly expect companies to act responsibly. As consumers become more aware, they want companies to take action to support the well-being of our planet and its inhabitants. Additionally, governments initiate ESG-related legislation and due diligence requirements, while investors seek companies that show leadership, good governance, and transparency.

Identify risks, optimise your supply chain and reach your sustainability goals

To help businesses tackle these challenges and credibly demonstrate their environmental, social, and governance engagement, IFS introduces the ESG Compliance Check. It empowers companies to evaluate and enhance their sustainability practices and supply chain management systems. Businesses will systematically gain better insights into their supply chains, mitigate risks, and identify areas for improvement to reach their sustainability goals. Additionally, they will be well-prepared for upcoming supply chain and due diligence legislation. The unique combination of a pre-assessment and validation by an auditor or assessor ensures the check results are reliable and trustworthy.

The new approach focuses on strategies for reducing risks

The new compliance check replaces the current IFS ESG Check. It includes 20 requirements, a pre-assessment, a risk mitigation plan, and an improvement action plan. The check can be assessed independently or as an add-on to an IFS or other audit. The new approach focuses more on the ESG-related critical raw materials risks and includes the mitigation of these risks.

As an add-on to the check, the Carbon Footprint module has been slightly revised to match the new approach. It remains a voluntary option to determine whether a company has established and maintained effective processes to identify carbon emission-related risks within the supply chain.

Current IFS ESG Check Letters of Confirmation will remain valid until the expiry date.

More IFS Supply Chain Solutions to come

The new IFS ESG Compliance Check is presented under the new brand, IFS Supply Chain Solutions. Under this brand, we will introduce further process checks and IT tools, all designed to assist companies in managing and monitoring supply chain risks effectively and ensuring compliance with regulatory requirements and stakeholder demands.

For more information, please

• visit the IFS ESG Compliance Check webpage,
• download the industry newsletter,
• Subscribe to our Supply Chain Solutions Newsletter,
• visit the IFS Supply Chain Solutions page.
  
  

“In a landscape where customers and other stakeholders demand greater transparency, it is essential for companies to identify and manage associated risks in their supply chains," states Stephan Tromp, IFS Managing Director. "The IFS Supply Chain Processes Check not only verifies that companies have established robust processes to identify risks but also highlights improvement opportunities, ultimately enhancing business resilience and increasing customer trust."

A structured approach to assessing risks 

With emerging challenges and heightened regulatory scrutiny, many enterprises worldwide face significant hurdles in implementing target-oriented risk management within their supply chains. The IFS Supply Chain Processes Check addresses these challenges by providing a systematic assessment of supply chain management systems, helping businesses identify commodity-related risks and facilitating constructive dialogue with supply chain partners.

Validated processes – trusted data 

Key components of the IFS Supply Chain Processes Check include:

• The Commodity List: This comprehensive overview of critical raw materials and ingredients used by the company, their country of origin, and associated risk categories allows for an informed understanding of overall supply chain risks.
• The Validation Module: An assessment by an auditor or assessor evaluates whether the company maintains effective processes for managing supply chain risks. This module can be performed as a stand-alone assessment or combined with the IFS Certification or other audits.

The IFS Supply Chain Processes Check results offer valuable insights into current practices and indicate areas for development, ensuring companies meet both stakeholder expectations and evolving government regulations.

More IFS Supply Chain Solutions to come

The introduction of the IFS Supply Chain Processes Check marks the first product under the new brand, IFS Supply Chain Solutions. Under this brand, we will introduce further process checks and IT tools, all designed to assist companies in managing and monitoring supply chain risks effectively and ensuring compliance with regulatory requirements and stakeholder demands.

For more information on the IFS Supply Chain Processes Check, 

• please visit the IFS Supply Chain Processes Check webpage or
• download the industry newsletter.