OECD due diligence guide for supply chains in 2025

93% of CEOs report facing pressure from investors to leverage sustainability metrics in order to keep financial risks contained, yet only 47% have comprehensive due diligence systems in place. As regulatory deadlines approach and enforcement intensifies, the OECD Guidelines for Responsible Business Conduct have become the global gold standard for supply chain risk management.

The OECD (Organisation for Economic Co-operation and Development) Guidelines, updated in June 2023 for the first time in over a decade, remain the foundation for responsible business conduct worldwide. From Norway's Transparency Act enforcement (åpenhetsloven) to the Corporate Sustainability Due Diligence Directive (CSDDD), the six steps in the OECD guidelines are central to every major supply chain law, and Factlines' SRM software is built to support them at scale.

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What are the OECD guidelines for responsible business conduct

The OECD Guidelines outline how multinational enterprises should manage environmental, social, and governance (ESG) risks across their entire value chain. The 2023 update introduced significant enhancements, particularly around:

• Climate change alignment with internationally agreed goals
• Biodiversity protection requirements
• Enhanced technology governance standards
• Strengthened supply chain due diligence expectations

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Global frameworks built on OECD guidelines

The OECD's influence extends across multiple regulatory frameworks:

• Norwegian Transparency Act (Åpenhetsloven) - Already enforcing due diligence requirements
• Corporate Sustainability Due Diligence Directive (CSDDD) - Member States must implement by July 2027
• EU Taxonomy Minimum Safeguards - Requiring OECD-aligned processes
• Sustainable Finance Disclosure Regulation (SFDR) - Integrating due diligence data
• UN Guiding Principles on Business and Human Rights - Sharing the same risk-based approach

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3 reasons OECD due diligence matters in 2025

1. Enforcement is accelerating globally

The shift from guidance to enforcement continues:

• Norway's Transparency Act issued its first enforcement action in 2024
• CSDDD implementation approaches (Member States must adopt laws by July 2027)
• Over 30 countries now have mandatory due diligence laws in implementation

2. Financial risks are significant

Companies without robust due diligence face:

• Fines up to 5% of annual global turnover under CSDDD
• Exclusion from public procurement in multiple jurisdictions
• Increased insurance costs and credit risks

3. Competitive advantages are measurable

Organisations with mature SRM systems report:

• 27% faster contract negotiations with sustainability-conscious buyers
• Reduced supply chain disruption through proactive risk management
• Access to sustainability-linked financing at preferential rates

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The OECD six step due diligence cycle with Factlines

The OECD framework operates as a continuous cycle, not a one-time checklist. Here's how each step works with Factlines' SRM software:

1. Embed responsible business conduct in your policies and management systems

How Factlines can help: Out of the box survey templates and automated supplier workflows allowing you to work with OECD standards on top of your existing systems.

2. Identify and assess adverse impacts across your supply chain

How Factlines can help: Chain Survey 2.0 provides multi-tier visibility over suppliers, while AI-powered summaries and targeted SAQs prioritise high-risk relationships automatically.

3. Cease, prevent or mitigate adverse impacts through action

How Factlines helps: Automated follow-up workflows trigger when issues are flagged, with responsibility assignment and remediation tracking to ensure concrete action.

4. Track implementation and monitor results continuously

How Factlines helps: Centralised documentation platform stores all evidence with timestamps, enabling continuous monitoring and audit-ready progress tracking.

5. Communicate due diligence findings to stakeholders

How Factlines helps: Automated reporting dashboards generate regulatory submissions and stakeholder communications with transparent, real-time data.

6. Provide remediation mechanisms for affected parties

How Factlines helps: Built-in grievance documentation and remediation tracking ensure affected parties have access to remedy with full audit trails.

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Choose a SRM software built for OECD due diligence

Generic survey tools can't handle modern due diligence complexity. You need SRM software that understands risk-based prioritisation, multi-tier visibility, continuous monitoring, and audit-ready documentation.

Factlines SRM software is purpose-built for OECD-aligned due diligence, from supplier mapping to automated reporting. Our platform helps you apply due diligence where it matters most, avoiding inefficient spreadsheets and box-ticking exercises.

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Ready to align your supply chain with OECD standards? Request a Free Trial or Book a Demo today!

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Sources

1. OECD (2023). OECD Guidelines for Multinational Enterprises on Responsible Business Conduct - 2023 Update. OECD Publishing. https://www.oecd.org/corporate/mne/
2. European Commission (2024). Corporate Sustainability Due Diligence Directive - Implementation Timeline. https://ec.europa.eu/info/business-economy-euro/doing-business-eu/corporate-sustainability-due-diligence_en
3. Norwegian Ministry of Children and Families (2024). Transparency Act Enforcement Update. https://www.regjeringen.no/en/topics/children-and-families/transparency-act/
4. Business & Human Rights Resource Centre (2025). National Legislation on Business & Human Rights. https://www.business-humanrights.org/en/big-issues/mandatory-due-diligence/
5. McKinsey & Company (2024). The State of ESG Investing: Global Survey Results. McKinsey Global Institute.
6. OECD (2023). Due Diligence Guidance for Responsible Business Conduct - Updated Implementation Guide. OECD Publishing.