2025 Supply Chain ESG Risk Outlook
Labour and environmental issues at the forefront of ESG risks threatening ethical sourcing.
What insights does the global risk landscape offer about supply chain vulnerabilities in the year ahead? EiQ's 2025 Supply Chain ESG Risk Outlook report reflects the critical risks impacting businesses and the human rights and environmental violations that are hindering brands and retailers from achieving ethical and responsible supply chains.
The latest report, derived from a dataset of more than 25,000 audits per year in LRQA’s supply chain intelligence platform - EiQ - debunks the assumption that Western production markets are inherently lower risk. In fact, this report shows that more than half of sourcing countries assessed are labelled as high or extreme risk for ESG violations. The report also uncovers key issues emerging in western countries such as risks for foreign migrant workers in Australia and the United Kingdom, as well as potential labour risks for businesses in the United States considering reshoring operations domestically.
In today’s complex global landscape and in the era of Assurance 4.0, the new era of risk management, gaining visibility into the often-overlooked risks within supply chains is more crucial than ever. Due diligence expectations have evolved, and businesses developing their responsible sourcing approaches to match or exceed this evolution is overdue.
