The 6 steps of due diligence is a that guide aims to help SMEs in their work with human rights, environmental and climate due diligence. The guide has been prepared by Ethical Trade Denmark. Read more here: https://www.the6steps.dk/
The six steps are as follow:
1. Commitment
Establish a clear policy commitment to respect human rights and the environment. This involves defining the company's values and expectations, ensuring top-level management support, and communicating this commitment to all stakeholders.
Work with step 1 in the prduct.com platform
To implement the first step of a process using our platform, you can start by setting up policies and share them with your suppliers. Here's how:
Go to the Supply Chain tab on the left.
Click on the Policies tab under the compliances category.
Press "Add Policy" in the top right corner.
Choose from options like Empty policy, Code of Conduct policy, or Generate Policies from PDF.
Modify the content and sections as needed.
Preview your policy using the preview button in the top right.
Activate the policy to inform your suppliers.
2. Risk Assessment
Identify and assess potential adverse impacts on human rights and the environment within the company's operations and supply chain. This step requires evaluating where and how business activities may negatively affect people and the planet.
Work with step 2 in the prduct.com platform
To work with step 2. All you need is within the "Due duligence" tab. Here you can find a risk overview and in the tab "Risk assessment" you can document risks and rank them by serverity and probability. In this way you can work constantly and document that you are working with risk assessments.
To document a risk, you need to:
Go to the "Risk assessment" tab within the "Due duligence" tab.
Click the green "Document risk" bottom in top right corner.
Fill out:
Risk name
Description
Link to a document
Rank Severity
Rank Probability
Add country
Rank importance
Click save
You can always filter the risk assessment based on Severity, Probability, importance etc.
You can always export all information as a PDF file.
3. Addressing Negative Impacts
Develop and implement strategies to prevent, mitigate, or remediate identified risks. This may include adjusting business practices, collaborating with suppliers, or engaging with affected communities to address and resolve issues.
Work with step 3 in the prduct.com platform
In our platform, we help you create action plans to address specific risks you've identified. These plans are practical tools to avoid and minimize risks.
To create an action plan on our platform, you can follow these steps:
Go to the "Due diligence" tab in our system.
Go to the the "Action plans" tab.
You'll see a list and heat map view of your action plans and tasks.
Create new action plans with the green bottom "Create action plan" in the top right corner.
This include:
Name of the action plan
Description of the action plan
Start date, end date
Status
Assign to
Country
Link it to a risk.
Add a optional document.
Assign responsibilities to team members for each task.
Use the heat map to visualize and prioritize your action items.
This tool is particularly helpful for handling CSDDD compliance. It allows you to document your efforts in preventing and minimizing negative impacts on people and the environment. Remember, the tasks you create in the action plan will also appear in the task manager for easy tracking.
4. Ongoing Follow-Up
Regularly monitor and evaluate the effectiveness of the measures taken to address risks. This continuous process ensures that the company's actions remain effective and responsive to any changes in the business environment or supply chain.
Work with step 4 in the prduct.com platform
Its about doing step 1-3 continuous and keep working with risk and improving action plans.
Do this by keeping making risk assessments, new actions plans, updating policies and send them to suppliers. You can also use the surveys within the platform to follow up with your suppliers.
5. Communication
Maintain transparent communication with stakeholders about the company's due diligence efforts, including policies, identified risks, and actions taken. This openness builds trust and demonstrates accountability in addressing human rights and environmental concerns.
Work with step 5 in the prduct.com platform
The platform holds all the information about your work with the previous steps. You can document past actions plans and risk assessments and show what you have done. This is all about showing what you did and why, the platform holds this information for you and make et easy to share and show internal and external.
The platform provide different visual overviews and export functions with the different parts of the system.
6. Complaints and Compensation
Establish accessible grievance mechanisms for individuals or communities affected by the company's operations. This ensures that concerns can be raised and addressed promptly, and appropriate remedies or compensations are provided when necessary.
By systematically implementing these six steps, companies can align their operations with international standards and effectively manage their impact on human rights and the environment.
Work with step 6 in the prduct.com platform
Its is up to you to handle complaints and compensation. The platform helps you keep an overview and document everything.