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Due diligence in the supply chain, an issue beyond the rules and regulations

By: Almudena Ezponda, Oana Girjaliu, Angie Ledesma, Andrea Pinilla and Pedro Villalobos

Sustainability in the supply chain is increasingly important for companies, especially in the current context of growing concern about the environmental and social impacts of business operations. To ensure that adequate measures are being taken, companies need to conduct due diligence at subject on sustainability at all stages of their supply chain. This involves analyzing risks, identifying and assessing suppliers, establishing preventive and corrective measures, and continuously monitoring performance. 

Moreover, due diligence at subject of sustainability also involves respect for human rights, prevention of child and forced work and protection of the environment. For this reason, many companies are adopting codes of ethics for their suppliers and requiring them to adhere to them. Internal and external audits are also being carried out to ensure that sustainability standards are being met.

In terms of regulation and international benchmarking, the European Commission has presented a proposal Directive on corporate due diligence on subject sustainability. This proposal includes measures to ensure that companies conduct due diligence on subject human rights, environment and governance throughout their supply chains. Attention is also being paid to trade union intervention in the supply chain and the need for greater monitoring of respect for human rights.

Ana Valdivieso, director of human resources at GSK Pharmaceuticals , and Ana López de San Román, director of sustainability at Ilunion, were present at roundtable . During this session, points were highlighted core topic in the management of sustainability in supply chains and the implementation of due diligence in the two companies. 

"Together, we unite science, technology and talent", is the purpose of GSK who began by sharing Valdivieso, who stated that it is based on three pillars: ambition for patients, responsibility with impact and doing the right thing. Valdivielso also insisted on the importance of informing and raising awareness among the company's employees so that this purpose spreads throughout the system. Another highlight that reaffirms the purpose is the implementation of a code of ethics for its suppliers, and internal and external audits to ensure that sustainability standards are met. In addition, they are continuously working on the development of new capabilities in people to optimize sustainability in the supply chain.

On the other hand, Ilunion has as proposal of value the employment of people with disabilities in more than 42% of its business lines, thus instilling sustainability in the levels of governance and inclusion of society. Sustainability is a strategic concept in its business so they also have the implementation of a code of ethics for its suppliers. In addition, in order to better respond to the needs of their stakeholders, they have carried out human rights training as well as a constant analysis of their suppliers and other factors that influence their value chain.

In conclusion, the two companies have made it a daily reality for their companies that regulatory compliance is aligned with their responsibility for sustainability in the supply chain. It is evident in the conversation of the two professionals the genuine concern that their companies continue to adopt measures to ensure adequate due diligence in subject of management of sustainability. The initiatives of companies such as GSK and ILUNION are important examples of how these challenges are being addressed today.

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