How to Spot Governance Gaps in Complex Supply Networks

As supply chains become more global and fragmented, governance becomes harder to enforce. From contract manufacturers to joint ventures, the deeper you go, the more governance gaps appear. And these gaps often hide the very ESG risks that can make headlines—and tank share prices.

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You’re a procurement head, general counsel, or risk lead responsible for overseeing third-party relationships. You need better oversight—but without creating unmanageable bureaucracy.

Strong governance in supply chains isn’t about more paperwork. It’s about embedding values, expectations, and escalation processes throughout your ecosystem.

1. Start with Risk-Based Segmentation Prioritise governance attention on suppliers that pose the greatest ESG and reputational risks.
2. Introduce ESG Clauses and Audit Rights in Contracts Include clear provisions around ESG performance, disclosure, and remediation.
3. Train Your Procurement Teams Equip them to spot red flags, ask the right questions, and escalate concerns effectively.
4. Build Governance Scorecards Use a combination of self-assessments, third-party audits, and internal reviews to track governance health.
5. Create an Escalation Pathway Ensure whistleblower policies and grievance mechanisms are available across your supplier network.

Governance that extends beyond your four walls strengthens your whole value chain. It gives you control, foresight, and resilience in a world of rising ESG scrutiny.

Your suppliers reflect your brand. Don’t let governance be your blind spot. Illuminate it—and strengthen your entire ESG strategy.