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

Jan de Vries · 2026-09-18

Only 14 per cent of companies can show their responsible sourcing programs are actually reducing risks or improving outcomes. That's a startling number, especially when you consider how much time, money, and marketing goes into supply chain sustainability. So what's going on? Why are so many companies struggling to prove their safeguards are working? ### The gap between intention and evidence Most companies have good intentions. They publish supplier codes of conduct. They run audits. They join industry initiatives. But when you ask for hard evidence that these efforts are making a difference, the trail often goes cold. According to a recent study, only 14% of companies can demonstrate that their responsible sourcing programs are reducing risks or improving outcomes. That means the vast majority are flying blind—or at least, they can't prove they're not. Think of it like a fitness tracker that only counts steps but never checks your heart rate or sleep. You're moving, but you have no idea if you're actually getting healthier. ### Why this matters for European startups If you're building a startup in Europe, supply chain transparency isn't just a nice-to-have. It's becoming a regulatory requirement. The EU's Corporate Sustainability Due Diligence Directive (CSDDD) will soon force large companies to prove their supply chains are clean. And startups that can help them do that? They're sitting on a goldmine. But here's the catch: if even the big players can't show their safeguards work, how will smaller companies manage? That's where the EU Inc proposal comes in. The idea is to create a unified European incorporation framework that makes it easier for startups to scale across borders. Part of that vision includes standardizing how companies report on supply chain risks—so there's a common language for what "working" actually means. ### What "working" actually looks like The study didn't just highlight the problem. It also pointed to what the 14% are doing differently. Here's what stands out: - They track outcomes, not just activities. Instead of counting how many audits they've done, they measure whether those audits led to fewer violations. - They use technology to connect the dots. Blockchain, AI, and real-time monitoring tools help them see what's happening on the ground—not just what suppliers claim. - They collaborate across industries. Sharing data and best practices with competitors sounds counterintuitive, but it's how the best get better. As one supply chain expert put it: "You can't manage what you don't measure. And you can't prove what you don't track." ### The bottom line Only 14% of companies can show their safeguards are working. That's not just a statistic—it's a wake-up call. For European startups, it's also an opportunity. If you can build tools that help companies prove their supply chains are responsible, you're not just doing good. You're filling a massive gap in the market. The EU Inc proposal could make that easier by creating a more unified regulatory environment. But the real work starts with asking the hard question: can you prove it? Because if you can't, you're not alone. But you're also not safe.