Only 14% of Companies Can Prove Their Supply Chain Protections Work

Jan de Vries · 2026-09-18

Only 14% of companies can actually prove that their responsible sourcing programs are reducing risks or improving outcomes. That's a startling statistic from a recent study, and it raises a big question: why are so many supply chain safeguards falling short? If you're in procurement, sustainability, or just trying to run a business that doesn't harm people or the planet, this number should make you pause. It's not that companies aren't trying. Many have codes of conduct, supplier audits, and certification requirements. But somewhere between policy and practice, things break down. ### The Gap Between Intent and Impact Let's be clear: most companies aren't lying about their efforts. They genuinely want to do better. They've invested time and money into responsible sourcing. But the study suggests that fewer than one in six can demonstrate that these efforts are actually working. Why? Because measuring impact is hard. It's one thing to say you've audited a factory. It's another to prove that the audit led to safer working conditions or lower carbon emissions. Companies often track activities—like the number of audits conducted—rather than outcomes. That's like a doctor counting how many patients they saw instead of whether anyone got better. ### What's Missing in Supply Chain Safeguards? So what separates the 14% from the rest? Here are a few common gaps: - **Lack of clear metrics**: Without baseline data and specific targets, it's impossible to know if things are improving. - **Siloed efforts**: Sustainability teams often work separately from procurement, so good intentions don't translate into purchasing decisions. - **Short-term thinking**: Quarterly earnings pressure can overshadow long-term investments in supply chain resilience. - **Limited supplier engagement**: Simply demanding compliance doesn't work. Suppliers need support, training, and incentives to change. ### Why This Matters for European Startups For European startups, especially those in e-commerce and consumer goods, supply chain transparency isn't just a nice-to-have. It's becoming a regulatory requirement. The EU's proposed Corporate Sustainability Due Diligence Directive will soon hold large companies accountable for human rights and environmental abuses in their value chains. Startups that can demonstrate robust safeguards will have a competitive edge. But here's the thing: you don't need to be a multinational to get this right. Small companies can build responsible sourcing into their DNA from day one. That means choosing suppliers carefully, setting clear expectations, and—crucially—tracking whether your actions are making a difference. ### How to Move from 14% to 100% If you want to be part of the 14% that can prove their safeguards work, start by asking better questions. Instead of "Did we audit this supplier?" ask "Did the audit lead to measurable improvements?" Instead of "Do we have a code of conduct?" ask "Are workers actually treated better because of it?" It's not about perfection. It's about progress you can verify. That's what builds trust with customers, investors, and regulators. And in a world where supply chains are under increasing scrutiny, that trust is priceless. So, where does your company stand? Can you show that your safeguards are working? If not, now is the time to start.