Third-Party & Supply Chain

A recent report from global assurance specialist LRQA sheds light on the persistent issue of child labor within supply chains, identifying it as the primary ESG (Environmental, Social, and Governance) differentiator between top-performing and low-performing countries. The report draws attention to the alarming presence of child labor in supply chains, emphasizing its impact on the overall risk assessment in the ESG domain.

The latest McKinsey report, titled "Tech and Regionalization Bolster Supply Chains, but Complacency Looms", offers a nuanced exploration of the current state of global supply chains, delving into key findings that illuminate the ongoing impact of COVID-19 on risk and resilience in the supply chain landscape.

Global electronics manufacturers Siemens, Ericsson, and Schneider Electric, in conjunction with industry group DigitalEurope, have raised concerns that the stringent European Union (EU) rules aimed at addressing cybersecurity risks associated with smart devices may disrupt supply chains on a scale reminiscent of the disruptions experienced during the pandemic. The companies have emphasized the potential challenges posed by the EU's proposed Cyber Resilience Act, which could have far-reaching implications for various industries.

The U.S. Securities and Exchange Commission (SEC) is receiving strong investor support for its proposal to include Scope 3 value chain emissions reporting in the final climate disclosure rule. These remarks came from SEC Chair Gary Gensler during a forum discussion at the U.S. Chamber of Commerce.

The Federal Reserve Board has taken a significant enforcement action against Metropolitan Commercial Bank, based in New York, New York, imposing a substantial fine of approximately $14.5 million. This action stems from violations of customer identification regulations and deficient third-party risk management practices in connection with the bank's issuance of prepaid card accounts.

The world’s largest logistics company, Prologis, said that the demand for industrial properties is remaining steady even as the market has made a shift away from consumer goods.

Flexport, a prominent American supply chain and logistics company based in San Francisco, has embarked on a substantial workforce reduction, aiming to cut 20% of its employee count, which currently stands at around 4,500. This bold move reflects the company's commitment to returning to profitability and ensuring long-term sustainability in a dynamic market.