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Key drivers of responsible sourcing

Responsible sourcing is being aware of where your products and services are coming from and ensuring your business operations are not having a negative impact on people and the environment. This means ensuring you source your products and services ethically and sustainably throughout each tier of the supply chain.

There are several drivers promoting the adoption and growth of responsible sourcing globally:

Consumer and investor demand

Consumers and investors are becoming increasingly mindful of the sustainability and ethical creation of goods and services, and are more likely than ever before to invest in more sustainable products. Companies that are able to report on their Environmental, Social and Governance (ESG) have an opportunity to build trust in their brands and reach new customers. A survey by market research analysts Nielsen revealed that 81% of global respondents felt strongly that companies should help improve the environment.


New ethical trade legislation is constantly being introduced around the world. More recently, the UK’s Modern Slavery Act 2015, Australia’s Modern Slavery Act 2018 (NSW) and The Netherlands’ Child Labour Due Diligence Law 2020 have all changed the way companies that operate in these countries do business. Through global supply chains, these companies improve ethical and social standards around the world.

Global heating and climate breakdown

Companies have a responsibility to take into consideration the environment and global ecosystems in addition to ethical and social factors in their supply chains. Climate breakdown is already having an impact on people around the world, particularly in the global south, which is having an increasingly negative effect on vulnerable migrant workers. Companies need to be responsible for the entire life cycle of products and protect the rights of workers during the production process.

Sedex supports companies to overcome these complex challenges. Using the right technology allows businesses to share information quickly and efficiently, prioritise their resources and take action where it will deliver the greatest impact. It enables and facilitates greater transparency throughout what is often a large and complex global supply chain.