14% of Companies Can Prove Supply Chain Safeguards Work—Here's Why

Jan de Vries · 2026-09-18

Only 14% of companies can show that their responsible sourcing programs are actually reducing risks or improving outcomes. That's a staggering number. It means the vast majority are investing in supply chain safeguards without any real proof they're making a difference. Think about that for a second. Companies pour millions into audits, certifications, and supplier codes of conduct. Yet when you ask for evidence that these efforts are working, most come up empty-handed. ### Why This Matters More Than Ever Supply chains have never been under more scrutiny. From forced labor concerns to environmental impact, stakeholders—investors, customers, regulators—want to know that the products they buy aren't causing harm. But according to a recent study, most companies can't demonstrate that their safeguards are effective. "It's not enough to have a policy," one supply chain expert noted. "You need to show it's changing behavior on the ground." That gap between intention and impact is where the real work begins. ### The Problem with Check-the-Box Compliance Many companies treat responsible sourcing as a compliance exercise. They check boxes, file reports, and move on. But that approach rarely leads to meaningful change. - **Audits alone don't solve problems.** A supplier might pass an audit but still have hidden issues. - **Certifications can be misleading.** Not all standards are created equal, and some are easier to game than others. - **Data is often fragmented.** Without clear metrics, it's impossible to know what's working. What's missing is a feedback loop—a way to measure outcomes, not just activities. ### What the 14% Do Differently The companies that can show results tend to share a few common traits. They set clear, measurable goals. They invest in supplier relationships rather than just policing them. And they use technology to track progress in real time. One retail giant, for example, reduced its supply chain emissions by 20% in three years by working closely with suppliers and sharing data openly. That's the kind of outcome that builds trust. ### The Road Ahead The study's findings are a wake-up call. With new regulations like the Corporate Sustainability Due Diligence Directive (CSDDD) coming into force, companies will soon be required to prove their safeguards are effective. Those that can't may face penalties—or worse, lose customer trust. The good news? It's not too late to start. By focusing on outcomes, investing in transparency, and collaborating with suppliers, more companies can join the 14%. And that's a goal worth striving for.