The OECD Guidelines for Multinational Enterprises establish standards for responsible business conduct across global operations. To strengthen implementation, the OECD wanted to enhance awareness of decision makers on risks where the framework could support proper due diligence. Ksapa, a sustainability consulting firm specializing in environmental and social risk management, was engaged to develop comprehensive profiles for various strategic sectors.
CLIENT CHALLENGE
The OECD needed to establish standardized, evidence-based risk profiles that businesses could use to enhance their due diligence practices. Each sector presented unique challenges:
- Complex, multi-tiered supply chains with limited visibility beyond tier 1 suppliers
- Varied operational contexts spanning developed and developing economies
- Sector-specific regulatory landscapes and stakeholder expectations
- Need to identify practical leverage points for environmental and social impact mitigation
- Limited existing cross-sectoral guidance on implementing due diligence effectively
The OECD required profiles that captured both common challenges and sector-specific nuances while remaining concise and actionable for businesses of all sizes.
results & impacts
Ksapa delivered several comprehensive sector risk profiles that provided:
- Clear mapping of salient environmental and social impacts across each sector’s value chain
- Analysis of structural characteristics affecting due diligence implementation
- Identification of strategic leverage points beyond tier 1 suppliers
- Compilation of sector-specific standards and guidance documents
- Practical recommendations tailored to each sector’s unique challenges
The profiles became foundational resources for businesses implementing the OECD Guidelines, regulatory bodies developing compliance frameworks, and stakeholders engaging with companies on responsible business conduct. These sector risk profiles have proven to be particularly helpful to influence stakeholder engagement strategies, and establish new benchmarks for ESG risk assessment.
ready to enhance your sector’s due diligence approach?
Contact Ksapa today to learn how our expertise in environmental and social risk profiling can strengthen your responsible business practices across global value chains. Our methodology combines rigorous research with practical implementation strategies tailored to your sector’s unique challenges.
