Third-Party & Supply Chain

In the grand, unpredictable theater of global commerce, supply chains are the delicate threads that hold the whole show together. But lately, it seems like these threads are fraying, snapping, and occasionally tying themselves into impossibly complicated knots. With shipping routes turning into obstacle courses and third-party services acting like temperamental divas, the need for resilience in supply chains isn’t just a trendy buzzword—it’s a matter of survival.

The U.S. Consumer Product Safety Commission (CPSC) has ruled that Amazon.com, Inc. is legally responsible as a "distributor" for hazardous products sold by third-party sellers on its platform. This ruling, issued on July 30, 2024, sends a clear message to e-commerce platforms about their accountability for third-party risk management and product safety compliance.

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.