Five overlooked supply chain risks that demand attention

Are we too focused on the EU’s omnibus?

Log onto LinkedIn and your feed is sure to be filled with at least five posts on the latest updates (or opinions) on the EU’s proposed omnibus legislation. Supply chain professionals have been consumed by its evolution, discussing its implications and scrutinising (or cheering on) regulatory shifts in corporate sustainability reporting and due diligence. It’s not just your LinkedIn algorithm – the focus on these legislative updates have seemed almost incessant. And while legislation certainly matters and knowing these updates are crucial to staying ahead of compliance, it seems to have disproportionately overshadowed the other urgent risks facing global trade, business resilience and supply chain sustainability. The phrase ‘fiddling while Rome burns’ comes to mind.

Here are five critical areas that deserve much more attention from businesses navigating current risks and trends:

1. Climate risks are becoming uninsurable. Insurers are sounding the alarm about climate-related disasters, with rising concerns that certain risks may soon be too costly to insure. From extreme weather events disrupting global supply chains to soaring insurance premiums, businesses must rethink risk mitigation strategies before they find themselves exposed to liabilities that can no longer be covered. We must renew the focus on Scope 3 emissions tracking and effective carbon data collection and reignite the conversation on how corporations can reduce their carbon footprints.
2. Trade rules are being rewritten by tariffs. Trade policies are shifting fast, with tariff changes reshaping global commerce. Entire supply chains risk disruption as governments impose new restrictions, forcing businesses to recalculate costs, relocate suppliers and rethink sourcing strategies. Adapting to these geopolitical shifts isn’t optional—it’s necessary for maintaining stability and competitiveness in uncertain markets. Businesses navigating this must have a deeper understanding of sourcing risks and work to improve their onboarding strategies and implement measures to build trust-based partnerships. Tariffs complicate this. Organisations must learn to navigate them effectively and really rapidly.
3. Whistleblowers are unveiling systemic failures. Across industries, whistleblowers are exposing deep-rooted failures—from unsafe working conditions and environmental violations to unethical supply chain practices. These revelations aren’t just reputational risks; they have legal and financial consequences. Companies must invest in transparent oversight, better data quality and advanced analytics systems, worker voice programmes, and ethical governance to prevent supply chain scandals before they surface. Historically business has been focused on exposure from external actors, that is rapidly changing to internal reporting on bad practices.
4. Misinformation Is undermining sustainability efforts. Sustainability initiatives are increasingly challenged by misinformation, eroding trust among consumers, investors and stakeholders. Questionable claims, greenwashing accusations and skepticism can dismantle credibility faster than progress can be made. Just this month, human rights organisation Walk Free reported that only 14% of companies from their research have disclosed incidents related to forced labour in their supply chains between 2016 and 2024, indicating a potential lack of due diligence or lack of transparent reporting. Businesses must prioritise data-driven transparency and third-party validation to maintain trust and combat misleading narratives.
5. AI will change everything—including sustainability reporting. Like it or not, AI is fundamentally reshaping the way businesses operate, and sustainability reporting is no exception. We’re moving toward AI-driven compliance, where automated systems handle ESG disclosures, risk assessments and due diligence monitoring. The question isn’t whether AI will transform supply chain governance—it’s how businesses will adapt to the shift before they fall behind. 

Regulatory changes matter, but they’re just one piece of the puzzle. Responsible businesses must look beyond compliance checkboxes and actively address emerging climate, trade, ethical, and technological risks that will shape the future of supply chains.

It’s time for the industry to broaden the conversation, think more holistically and ensure these overlooked challenges are given the focus they deserve.