Agricultural suppliers can be considered high risks for environmental, human rights, and labor issues. They often operate in low-information environments, where facts on the ground are challenging to confirm. This combination of high-risks and high-uncertainty means companies relying on or investing in agricultural suppliers need to adopt flexible risk management systems.
Our new brief explores some of the risks inherent to the sector–particularly sustainability risks–that can be mitigated with effective due diligence methods.
As regulators require more action on sustainability, and ESG continues to grow as a key consideration in investment decisions, it is important to ensure diligence methodologies are adequately designed to capture an expanding set of risk factors.