Compliance compact: Mastering current regulatory requirements successfully and efficiently
published on
10.4.2025
In the increasingly regulated business world, compliance has long been more than just a legal requirement. With a growing number of requirements - from the EU Deforestation Regulation (EUDR) and the Supply Chain Sustainability Obligations Act (LkSG) to sustainability reporting in accordance with CSRD - the demands on companies to make their supply chains and business processes more sustainable, transparent and responsible are increasing.
What used to mainly affect large corporations is now increasingly affecting industrial SMEs either directly or indirectly. On the one hand through their own reporting obligations, on the other hand through growing requirements from customers, banks or investors along the supply chain. The key question is therefore: how can compliance be implemented strategically, efficiently and in a future-proof manner in a complex and constantly changing environment?
In the handbook "Compliance compact - mastering current regulatory requirements successfully and efficiently", we provide a practical overview of the most important legal developments - including specific recommendations for action for purchasing, sustainability management and management. The guide shows how companies can not only react to new regulations, but also use regulatory requirements strategically to strengthen their competitiveness.
For many SMEs, ESG certification, CO₂ reporting and proof of origin of critical raw materials have long been part of their day-to-day business - even if they are not yet formally required to report directly.
The so-called trickle-down effect is having an impact: large companies are passing on their compliance requirements along the supply chain. Companies that cannot provide reliable evidence of compliance with human rights and environmental standards are increasingly losing competitiveness or are not even considered for tenders.
The parallelism of new requirements is particularly challenging:
However, instead of being overwhelmed by regulatory dynamics, companies can actively shape change. Those who address regulatory requirements at an early stage and counter them with well thought-out processes create the basis for resilient supply chains, better ESG ratings and long-term financing advantages.
The wave of European regulation is not only extensive, but also complex. In addition to the German LkSG, the European CSDDD (Corporate Sustainability Due Diligence Directive) places the topic of corporate responsibility even more in the spotlight. At the same time, the CSRD (Corporate Sustainability Reporting Directive) makes sustainability a reporting obligation - with a new level of data depth and transparency. In turn, the CBAM ensures that climate costs will be priced into the import of energy-intensive goods in future.
Sectors such as industry, mechanical engineering, chemicals, automotive and electronics are particularly hard hit - but the wholesale and retail sectors and the consumer goods industry are also increasingly coming under pressure.
For companies operating as Tier 1 or Tier 2 suppliers in particular, it is crucial to continuously monitor regulatory developments and systematically implement the resulting compliance measures in the supply chain.
The greatest operational leverage for compliance often lies in purchasing. Those who manage their supplier data in a structured manner, use digital tools for sustainability data and systematically integrate regulatory requirements can significantly reduce the additional workload - and establish compliance as an integral part of their procurement strategy.
Modern supplier relationship management systems (SRM) offer the possibility of documenting all relevant information centrally, identifying risks at an early stage and providing the necessary evidence in a legally compliant manner.
Active supplier management is particularly important here: early dialog with partners along the supply chain, the definition of clear responsibilities and the establishment of long-term cooperation on an equal footing are decisive success factors. In this way, compliance does not become a hurdle, but a structural competitive advantage.
Regulatory requirements relating to sustainability, human rights and environmental responsibility will continue to increase. Companies that proactively invest in their compliance strategy today not only avoid sanctions and reputational risks. They also position themselves as reliable partners within sustainable supply chains, increase their attractiveness to customers, investors and financiers and ensure long-term resilience to regulatory changes.
In the future, compliance will continue to develop into a strategic management tool. Companies that not only comply with regulatory requirements but also help to shape them will gain access to new markets, develop more resilient business models and actively drive innovation along the supply chain. Procurement is becoming a decisive lever here - not only for efficiency, but also for sustainable growth.
Download the detailed manual to derive concrete recommendations for your company!
