Responsible Sourcing Diagnostic 

In 2019, Kumi developed the Responsible Sourcing Diagnostic to:

• benchmark our clients against market and regulatory requirements for responsible sourcing, and;
• diagnose the effectiveness of the implementation of existing policies and procedures for due diligence.

The Diagnostic gave companies a clear view of the gaps in their existing processes and the action needed to develop strong responsible sourcing programmes.

Since then, our approach has evolved as soft law has become hard law and regulatory frameworks have advanced globally. Today, our Diagnostic can benchmark our clients against requirements, such as:

• The German Supply Chain Due Diligence Act
• The Norwegian Transparency Act
• The French Duty of Vigilance Law
• The EU Corporate Sustainability Due Diligence Directive
• The EU Conflict Minerals Regulation
• A range of industry-specific standards.
• Clients’ own codes of conduct and expectations

Drawing on our unique insights from our work as the architects of the OECD Alignment Assessment methodology, our Diagnostic involves three key phases:

1. Data collection: We review information and organise this according to the standard(s) being applied. This can include policies, procedures, supplier data, supplier audits, and public reports. We then interview key personnel at the company, such as senior management, employees in sustainability, procurement and legal, to understand how policies and processes are implemented.
2. Data analysis: We benchmark this information findings against the selected reference standard(s) for responsible sourcing. 
3. Reporting: We provide the findings and recommendations in a concise, actionable management report. Within this we give our clients clear, targeted and pragmatic actions to close any identified gaps and align with the chosen benchmark standard(s).

When undertaking Responsible Sourcing Diagnostics, we always:

Co-create programmes with our clients: We partner with our clients throughout our projects to ensure that no findings are communicated throughout the process and recommendations make sense. Our aim is that the outputs from our Diagnostics are strong and compelling, and this requires co-developing the narrative with the client.

Tailor programmes to fit with existing processes: Most companies already have some processes in place for due diligence and have invested many resources into ESG-related activities. Our aim is not to start from zero, but to build on existing processes so that they are stronger and aligned with industry requirements.

Ensure responsible sourcing is integrated in strategy: Responsible sourcing is not an add-on. We work with senior leaders of businesses to ensure that responsible sourcing programmes can be integrated into corporate strategies. This means understanding our clients business objectives and capacity building with those who have roles and responsibilities in the responsible sourcing programme to make sure implementation sticks and delivers value.

Get in touch if you would like to find out more about how we can support you.