Due diligence literally means "due diligence. It is identifying the positive and negative effects of your business activities. It is important for any business to know its risks and then take responsibility for the potentially negative effects.

The due diligence in relation to sustainability includes all risks to people and the environment that fit your company or product.

Précon hates woolly language and paper tigers, but likes to support its customers in a pragmatic way in their sustainability efforts. Given our years of experience in the food and non-food sector, we understand the daily practice at your company. We not only see possibilities and opportunities, but also realize the everyday reality within your company.

Interested in an informal and exploratory discussion, contact us!

Due diligence is a six-step process in which a company will identify and manage human and environmental risks in your production chain - both upstream and downstream. In that sense, it is part of a risk management system that most companies already have in place.

Due diligence begins with mapping the entire production chain and its risks. Following that, the impact of the various risks is assessed. A company is expected to address the most serious risks.

Our experience with companies shows that many questions arise when putting these steps into practice. Consider questions such as:

• How should I approach risk assessment?
• How deep in the chain am I responsible as a company?
• My suppliers have a "BSCI certificate. Is that sufficient?

We know from experience that addressing risks in the chain with respect to human rights violations or environmental standards is not an easy process and requires commitment and capacity from a company. Moreover, it affects various departments as well as management. It is also not a one-off exercise, but requires constant maintenance and adjustment.

Nevertheless, due diligence obligations can be beneficial to a company and fit with a professional business practice that is mindful of the environment and external developments taking place. Risk management with respect to human rights and the environment can prevent reputational damage and ensure that a company can position itself positively against its competitors.

Another important benefit of due diligence is that it provides insight into the key short-, medium- and long-term issues and what a company needs to consider. This is important input for a company's strategy.

Last but not least, a well-executed due diligence process enables a company to justify, through the sustainability report, which measures are taken and which are not. This increases trust towards customers, investors and other partners.