CSCOs face a new SEC rule and a key regulatory change
Voice of the CSCO | March 2024
Supply chain management is evolving with shifts in regulations, such as new SEC rules and the updated EU's Corporate Sustainability Due Diligence Directive (CSDDD). These changes require Chief Supply Chain Officers (CSCOs) to harmonize these new mandates with existing ESG policies. However, data management and supply chain circularity present new challenges and opportunities. Hence, the future for CSCOs requires strategic adaptation, with a focus on clean data acquisition and innovative risk mitigation approaches.
Some key factors and considerations for CSCOs are:
- Regulatory compliance: Adapting to new regulations like the SEC climate disclosure rules and the EU's CSDDD poses compliance challenges. CSCOs emphasized the importance of robust data systems for tracking and reporting information related to every vendor, product, and raw material to efficiently meet regulatory demands.
Update: SEC Stays Climate Rule
On April 4, 2024, the SEC issued a stay of its climate disclosure rule, pending judicial review. This comes on the heels of our regulatory discussion on the topic. Our understanding/advice: no change in SEC’s position regarding its authority; no effect on companies preparing for compliance.
The SEC climate disclosure rule is temporarily paused while legal challenges are resolved. The rule’s effective date, January 1, 2025, is uncertain. It’s worth noting that companies are continuing to prepare for the rule as challenges may fail. Some firms are considering the SEC rule alongside other reporting requirements, while others are still moving ahead with its implementation.
For more information, please refer to our article.
Read more SEC stays its climate rule pending judicial review
- Circularity and strategic innovation: Balancing cost, sustainability, and strategy considerations, the integration of circularity into supply chains along with the exploration of novel strategies, like leveraging artificial intelligence, reflects the innovative thinking in supply chain management.
- Risk mitigation and supplier management: Ensuring stability in operations requires robust risk mitigation strategies, including supplier diversity and contingency planning. Effective supplier management, focusing on accountability and reliability, is fundamental.
- Adaptability: The shifting landscape, with aspects like clean supply chain policies and changes in global sourcing, necessitates flexibility, and adaptability for successful navigation.
Dive into our thinking:
CSCOs face a new SEC rule and a key regulatory change
Explore top-of-mind issues for supply chain leaders, including regulatory impacts, circularity, data challenges, and risk mitigation.
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