What is Due Diligence?
Due Diligence is a comprehensive, critical investigation or audit of a potential investment, product, business, or partnership. It involves examining financial records, business operations, legal obligations, and other critical details to assess risks and opportunities.
In the realm of supply chain traceability, due diligence is the process companies undertake to ensure their suppliers and partners comply with legal, environmental, and ethical standards. This includes verifying the origins of materials, ensuring labour practices are fair, and assessing environmental impact. Due diligence helps companies manage risks, protect their reputation, and ensure responsible sourcing and compliance with regulatory requirements.
Related terms
Wood Products
Wood Products refer to a wide variety of goods derived from trees and forests, including lumber, plywood, paper, furniture, and other items made from wood fibres. These products are integral to numerous industries and everyday life, offering benefits such as carbon sequestration, renewable material, and versatility.
Supply Chain Transparency
Supply Chain Transparency refers to the extent to which a company discloses information regarding the practices, partners, policies, and origins within its supply chain.
UK Environment Act
The UK Environment Act is landmark legislation designed to address various environmental issues within the United Kingdom, including air and water quality, waste management, and biodiversity restoration.