A review of challenges and strategies towards integrating sustainability and due diligence in the buyer-supplier relationship

Global supply chains account for 80% of international trade but pose significant human rights and environmental risks. The EU Corporate Sustainability Due Diligence Directive and similar regulations impose new compliance requirements, challenging companies to integrate sustainability, due diligence, and supplier relationship management. This paper reviews the challenges of com-plying with these regulations, including supply chain dilemmas related to regulations, complexity, and transparency. It explores how risk-based and collaborative approaches and leveraging technologies can promote effective sustainability due diligence in global supply chains. This study contributes to understanding how large firms can navigate evolving supply chain regulations to ensure com-pliant, sustainable practices by addressing challenges and mitigating strategies.