Just Transition in Supply Chains: From Risk to Action

Just transition is about ensuring that the shift to a more sustainable economy happens in a fair and inclusive way – for workers, local communities, and suppliers alike. During the webinar, David Rousseau and Sophie Harwood from Impactt explained how this transition can intensify supply chain risks, particularly in contexts where:

• rapid scale-up and time-critical projects put pressure on suppliers
• sourcing is shifted to new and emerging markets
• margins and delivery speed take precedence over working conditions

The result is increased risk of human rights violations, weak HSE performance, uncertainty around contractual conditions, and insufficient supplier oversight.

Typical Risk Areas in the Supply Chain

Impactt demonstrated how just transition risks often concentrate in specific parts of the value chain:

• Upstream suppliers with low maturity in HR, HSE, and governance systems
• Accelerated procurement processes where due diligence is shortened or bypassed
• Complex ownership structures that obscure accountability and control
• Country risk, especially in markets with weak labour rights or limited enforcement

The message was clear: risk is not evenly distributed – it accumulates where pressure is highest and governance is weakest.

From Risk to Action – What Can Companies Do?

A key takeaway from Impactt was the need to move from ambitious principles to operational execution. Four practical actions were highlighted:

1. Focus where risk is actually highest
   Not everything requires the same level of follow-up. Prioritise efforts where both impact and likelihood are greatest.
2. Aim for credible insight – not perfection
   Risk-based and verifiable insight enables better decisions than incomplete or checklist-driven approaches.
3. Triangulate information
   Use multiple data sources and independent perspectives to validate what suppliers report themselves.
4. Embed resilience into procurement decisions
   Procurement is about more than price and capacity – it also concerns robustness, compliance, and long-term risk.

Practical Due Diligence with Magnet JQS

During the webinar, Elisabeth Aaserød demonstrated how these principles can be operationalised in Magnet JQS. The platform enables structured and documentable due diligence across the supplier base, including:

• supply chain overview and ongoing monitoring
• integrity due diligence data and credit information
• ownership structures and shareholder information
• country risk indices
• consolidated reports available through the user interface and for download

This makes it possible to identify where risk actually resides – and to link findings directly to procurement, contracts, and supplier follow-up.

Key Takeaways from the Webinar

Among the most important insights:

• Just transition-related risk tends to concentrate upstream, where visibility and governance are often weakest
• Perfect mapping is unrealistic – risk-based and auditable insight is more effective
• Data triangulation provides a stronger basis for decision-making than single sources
• Increased control and insight reduce the risk of non-compliance, delivery disruption, and reputational damage
• Just transition is a cross-functional challenge, requiring closer collaboration between procurement, sustainability, legal, HSE, finance, and operations