CASE STUDIES
Investor’s supply chain due diligence: African agri-commodities
Investor’s supply chain due diligence: African agri-commodities
Kumi was commissioned to carry out supply chain due diligence on the environmental, social and governance (ESG) risks within the supply chains of a major agri-commodity processor in West Africa to inform an investor’s financing decisions.
Bi-lingual team delivered an ESG due diligence
Working in both English and French, the Kumi’s responsible sourcing consulting team engaged in the following activities:
- Developing a methodology based on the OECD-FAO Guidance for Responsible Agricultural Supply Chains to assess supply chain due diligence.
- Reviewing relevant corporate documentation, such as policies, code of conducts, supply chain due diligence procedures and supplier contracts.
- Undertaking a desk-based due diligence of ESG risks in the supply chains and regions in scope. Kumi’s ESG due diligence examined supply chain risks including child and forced labour, health and safety issues, deforestation, poor management of agrochemicals, climate change, issues relating to access to land and corruption.
- Conducting interviews with relevant stakeholders.
Practical actions to address supply chain risks
To conclude the project, Kumi compiled the findings in a report with targeted recommendations for the investor. The recommendations provided practical actions that were aimed at helping the investee company to address identified supply chain risks and establish management processes that are aligned with international standards and industry good practices.
