Third-Party & Supply Chain

The Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) have jointly unveiled a multi-pronged approach to address the rapidly evolving landscape of bank-fintech partnerships and associated third-party risks. This initiative includes a detailed statement on potential risks and effective risk management practices, coupled with a Request for Information (RFI) seeking broader input on these complex arrangements. However, the approach has sparked debate within regulatory circles, highlighting the challenges in balancing innovation with prudent oversight.

The European Union's Directive on Corporate Sustainability Due Diligence (Directive 2024/1760) officially entered into force today. This significant piece of legislation aims to foster sustainable and responsible corporate behavior by ensuring that companies identify and address adverse human rights and environmental impacts throughout their operations and global value chains.

"No man is an island, entire of itself; Every man is a piece of the continent, a part of the main." - English Poet John Donne's Devotions Upon Emergent Conditions (1624) found in the section Meditation XVII.

The fashion industry is facing unprecedented challenges as it struggles to reconcile its complex global supply chains with mounting environmental, social, and governance (ESG) concerns. Recent revelations have cast a spotlight on the opacity of fashion supply chains, raising questions about the effectiveness of current sustainability initiatives and the industry's commitment to ethical practices.

HSBC, in collaboration with Procurement Leaders, a World50 Group Community, has released a pivotal report titled "Building Resilient Supply Chains Amid an Uncertain Geopolitical Landscape." The study offers crucial insights for businesses navigating the increasingly complex world of global trade, where geopolitical uncertainties are reshaping traditional supply chain models.

According to the Safety and Shipping Review released for 2024 by Allianz Commercial, a company under the umbrella of German-based Allianz Group, Losses of large shipping vessels achieved a record low with 26 losses last year. This a drastic improvement from three decades ago, and even shows significant growth within the last decade. This was accomplished in spite of the tumultuous environment the shipping business operates in and the additional challenges it has faced in recent years.

The U.S. Department of Homeland Security (DHS) has added three new Chinese companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. These additions target seafood, aluminum, and footwear industries, critical sectors in Xinjiang’s economy, to block the importation of goods produced with forced labor into the U.S.