TrustScore for companies
Due diligence is becoming an every larger priority for companies worldwide. As companies operate more internationally, supply chains become more complex, and demands from society for transparency and corporate responsibility increase, companies need to respond.
Upcoming mandatory due diligence requirements from the European Union (which will also apply to small and medium sized businesses) requires all companies that do business in or with the EU to review their approach to due diligence.
However, due diligence is complicated, time consuming and expensive. This is why so far comprehensive due diligence has been limited to the domain of large companies.
Comprehensive due dilgence currently involves a review of each of the suppliers in range of areas (e.g. ESG, Financial performance, sector competence). This should also includes a due diligence of the suppliers of their suppliers and so on untill the company has clear line of sight of the entire supply chain. For smaller companies this could run into hundreds of suppliers in the full supply chain and up to tens of thousands for larger companies.
Conducting due diligence only when adding a supplier is not enough – there needs to be an ongoing monitoring program in place to ensure suppliers do not slip into non-compliance.
In conclusion: companies are faced with every larger demands for time consuming and expensive due diligence.
TrustScore reimagines the due diligence process by turning it on its head. In stead of each company doing all due diligence on all suppliers, a large part of due diligence is only performed once and securely and transparently registered in the TrustScore platform. This due diligence is then available to all members of the TrustScore platform.
TrustScore provides a platform where companies can register their credentials which are verified by accredited companies, whose accreditation is also transparent. The certificates (and accreditation) are stored in the BlockChain for transparancy and immutability.
Based on all certifications, a TrustScore is calculated for each company based on its certification status and that of its full supply chain. This makes it easy to identify areas of improvement (below is an example of a fictional company with randomly generated data).