Many companies face specific compliance challenges due to new laws concerning global supply and value chains. Directives such as the German Supply Chain Due Diligence Act (SCDDA), the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Border Adjustment Mechanism (CBAM), and the European Deforestation Regulation (EUDR) require extensive monitoring and reporting obligations along the entire supply chain. Moreover, they demand proof of human rights and environmental protection measures.
We have developed a solution to support your company’s growing compliance challenges. Implement the requirements of the SCDDA, CSDDD, CBAM, and the EUDR securely and efficiently – and gain full transparency into the risks of your value chain.
“The new regulations increase administrative effort and pose compliance challenges. We help you to overcome these hurdles effectively, simplifying implementation and helping you avoid the potential penalties for non-compliance.”
Since 2023, Germany’s Supply Chain Due Diligence Act (SCDDA) has been in effect. To comply with regulatory requirements, companies with more than 1,000 employees must implement comprehensive risk management systems to detect and address issues such as human rights violations and environmental breaches.
PwC supported Condor Flugdienst GmbH in implementing the award-winning software “Check Your Value Chain (CYVC)” within the company. This software enhances risk transparency and compliance in supply chains. By enabling data-driven decision-making, CYVC lays the foundation for developing resilient supply chains and promotes responsible corporate actions.
Recognised with SAP Innovation Award: PwC wins the SAP Innovation Award 2023 in the Partner Paragon category with the Check Your Value Chain solution: By using SAP technology, PwC provides its clients with a powerful solution that enables them to efficiently meet the requirements of the Supply Chain Duty of Care Act with a manageable amount of resources – and with full risk transparency.
About the award: Every year, SAP presents the Innovation Awards to recognise the achievements of forward-thinking companies that use the latest SAP technologies to create intelligent solutions that have a positive impact on the economy, environment and society and help shape a more sustainable future.
Recognition: PwC’s “Check Your Value Chain” software was honoured with 3rd place in the “New Business Models” category of the Corporate Digital Responsibility (CDR) Awards. The award recognises CYVC's ability to ensure compliance with human rights and environmental protection standards in value chains.
About the award: The CDR Award recognises companies and organisations that demonstrate an outstanding commitment to corporate digital responsibility that goes beyond legal requirements. It aims to stimulate competition and raise awareness of the importance of digital responsibility in shaping a sustainable future. The award recognises both practical approaches and theoretical work, internal processes and ideas that span the entire supply chain (B2B2C).
Recognition: Our SCDDA software “Check Your Value Chain”, which is based on SAP cloud technology, enables customers to analyse large volumes of supplier data along their global value chain to ensure compliance with the SCDDA (LkSG) and CSDDD. This led to the tool being recognised in the “Cyber, Risk & Regulation” category.
About the award: The Solvers Challenge is an internal PwC competition that helps bring innovative solutions from the global PwC network to life. In 2023, more than 700 teams from 135 countries submitted their solutions. The global jury was made up of internal and external experts. Find out more in the following video on the website.
Since 2024, German companies with over 1,000 employees must analyse their global value chains to comply with the German Supply Chain Due Diligence Act (SCDDA). The legislation aims to improve supply chain transparency, strengthen human rights, and minimise environmental risks. The Corporate Sustainability Due Diligence Directive (CSDDD) expands these requirements to downstream supply chains. Furthermore, the European Union Deforestation Regulation (EUDR) aims to ban products linked to deforestation from entering the EU market. The Carbon Border Adjustment Mechanism (CBAM) requires importers to pay for their products’ carbon emissions. In short, value chain reporting and compliance obligations are increasing significantly.
In practice, the implementation of these laws and the long-term implications are often unclear. However, it is certain that companies must conduct a comprehensive risk analysis of their supply chains. An entirely manual approach to legal compliance, in which each business partner and product is individually checked, is impractical due to the considerable resources and costly internal processes this demands.
To meet all requirements promptly, it is crucial to establish robust structures and processes for risk analysis, action management, and reporting. Companies must gain a clear overview of how their compliance processes should function and the tools necessary to support them. Given the growing supply chain regulations, proactive adaptation is vital to mitigate the legal and financial risks.
With PwC’s “Check Your Value Chain” compliance suite, your company can identify, assess, and mitigate risks efficiently within your value and supply chains. Map the full spectrum of requirements from the German SCDDA, CSDDD, EUDR, and CBAM within a systematic, audit-proof, end-to-end process. Implement all necessary steps to fulfill these obligations across your entire business partner network and relevant product portfolios.
The solution continuously analyses multiple data sources related to your business partners, including macroeconomic indicators, multilingual media information, and all relevant certifications, benchmarks, ratings, and indices.
A detailed analysis of supplier risks pinpoints your highest-risk business partners, enabling targeted mitigation measures. Through tailored risk reduction suggestions and automated BAFA (Federal Office for Economic Affairs and Export Control) reporting, your company can achieve compliance and save significant time and expense.
Analyse and evaluate your business partner portfolio and address your reporting obligations.
Securely meet your reporting obligations regarding the emission values of imported goods such as iron, fertilisers, or hydrogen.
Analyse geolocation data, identify problem cases and ensure deforestation-free supply chains.
With comprehensive reporting, our solution covers all reporting obligations of the Supply Chain Act and the requirements of the Federal Office for Economic Affairs and Export Control (BAFA). Detailed analyses of high-risk business partners complement our predefined reports. Your company can use these at any time for internal documentation and annual reporting. Should the legislation change, such as with the EU Directive, we update the software to align with future legal requirements, ensuring users are always up to date.
Our market-unique, risk-based approach enables you to analyse all suppliers involved in value creation alongside your business activities and customers. Market-tested, validated assessment methods and a wide array of relevant external data support a risk-tiered analysis of all business partners. This systematic end-to-end process guarantees compliance with all due diligence obligations, reduces complexity, and provides complete transparency over every step in the risk assessment process.
Our solution integrates with Dataland, an innovative sustainability data marketplace, providing access to a wealth of company information. Additionally, it connects data from other sources, such as Sedex, Maplecroft, and Dow Jones, as well as various sanctions and certification databases.
Our modern application platform seamlessly integrates with any system landscape, easily connecting to your existing company systems. Deploy our software-as-a-service solution across your entire organisation with ease. Maintaining interfaces with established SAP systems is also straightforward.
The “Check Your Value Chain” compliance suite is a core component of PwC Germany’s comprehensive sustainability management offering. Our highly scalable solution integrates various sustainability applications, such as EU taxonomy, risk management, and climate change. It can be expanded to include other internationally applicable regulations, such as the UK Modern Slavery Act. With PwC’s holistic solution, users can access a whole suite of tools and leverage synergies via a single system.
The EU Supply Chain Act exceeds the requirements of the SCDDA. But what exactly are the differences in scope, possible sanctions, due diligence obligations, risk management requirements, and reporting obligations? These points are precisely what our experts have summarised for you.
Do you need a fast and cost-effective initial assessment to identify your highest-risk business partners, or do you want to quickly understand how your company can ensure due diligence across the entire supply chain? Try our new service and receive a rapid report which includes a comprehensive overview and individual risk analyses of high-risk business partners and all other partners in your portfolio. Interested in learning more? Read our flyer for all the details and benefits.
“Check Your Value Chain” s a legally compliant, flexible, and audit-proof solution. The software automates identifying, assessing, and prioritising risks concerning human rights and environmental violations. It also enables the definition and tracking of measures and offers managed services for the SCDDA and CSDDD.
Continuously monitoring all business partners and documenting every step of your supply chain due diligence ensures you maintain complete transparency over the entire process. You can also export audit-proof reports for publication and dissemination to support you in fulfilling your regulatory requirements.
