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risks and opportunities revealed by esg due diligence (2024) industry white paper-china automotive technology research center

2024-10-07

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as global attention to environmental, social and governance (esg) issues continues to increase, the sustainable development of enterprises has become an important issue in the automotive industry. while pursuing economic benefits, enterprises must take into account environmental protection, social responsibility and corporate governance. especially in supply chain management, esg due diligence is regarded as one of the important means to ensure sustainability. through systematic due diligence, companies can identify and manage esg risks in the supply chain, thereby achieving long-term sustainable development. in recent years, the european union and other regions have passed a series of relevant regulations, such as the corporate sustainability reporting development directive (csrd) and the corporate sustainability development due diligence directive (csddd). these regulations clearly stipulate the requirements of enterprises in supply chain management. the esg standards and disclosure requirements that need to be followed not only promote the standardized management of international companies in the esg field, but also put forward higher requirements for the sustainability of the global supply chain.

currently, enterprises face many challenges in the process of implementing supply chain due diligence.

first, supply chain due diligence faces an incomplete understanding of standards and regulations. supply chain due diligence involves multiple international and domestic regulations, and the complexity and variability of these regulations increase the difficulty for companies to understand and comply with.

second, supply chain due diligence faces insufficient attention. due diligence has a low priority in corporate management, resulting in insufficient resources and time allocation.

third, supply chain due diligence is faced with a lack of willingness to carry out supply chain due diligence. when companies conduct supply chain due diligence, they often lack initiative due to cost and redundancy issues. because of the high cost, many companies cannot afford it: due to the complexity of the process, it is difficult for enterprises to carry out. although some companies with advanced esg management have begun to explore sustainable due diligence on supply chains, the comprehensiveness and reliability of data and the complexity of the supply chain structure have made implementation difficult.