By Sphera’s Editorial Team | July 20, 2023

ESG performance and risk management pioneer’s purpose-built compliance management solution provides organizations with the tools to monitor and mitigate supply chain risk, as well as navigate existing and emerging compliance-related laws  

CHICAGO, IL (July 20, 2023) – Sphera®, a leading global provider of environmental, social and governance (ESG) performance and risk management software, data and consulting services, today announced optimizations to the Sphera Supply Chain Risk Management (SCRM) Compliance Incident Management (CIM) solution.   

As supply chains become more expansive, organizations have a significant challenge in gaining the oversight needed to identify and mitigate risks and ensure compliance. Sphera SCRM CIM is a digital tool that empowers enterprises to fulfill compliance-related requirements arising from compliance-related laws, as well as from investors and end-customers. Sphera SCRM CIM monitors supply chains for compliance-related violations, captures all relevant incident data and provides an overview of these events. It informs companies of incidents that may violate regulatory requirements or interfere with sustainability goals. These incidents can also put the company at financial or reputational risk.  

Companies need a tool to help them navigate existing and emerging compliance regulations aimed at boosting ethical behavior throughout the value chain, such as Germany’s LkSG legislation. It requires large companies (those with 3,000 or more employees in 2023 and 1,000 or more employees in 2024) conducting business in Germany to detect human rights violations in their supply base—including child labor, modern slavery and forced labor, as well as environmental risks that can violate human rights. Powered by Sphera’s groundbreaking SCRM CIM tool, the German Supply Chain Act (LkSG) Bundle delivers an all-in-one solution for businesses to easily implement the necessary risk management controls, perform real-time risk analysis and document alerts and preventive and corrective actions that are required by the robust LkSG. 

“With increased regulations and compliance requirements around the world, companies are under unprecedented pressure to gain visibility into the operations of both subsidiaries and direct suppliers as well as indirect suppliers and other third-party providers,” said Paul Marushka, Sphera’s CEO and president. “Businesses need a real-time solution that can provide them with the end-to-end supply chain transparency they need to ensure ongoing compliance. Sphera SCRM CIM does just that. It enables companies to establish a more proactive compliance and risk management foundation to provide transparency, avoid costly reputational damage and leverage compliance as a key driver for business growth—and allows businesses to address their immediate LkSG compliance and risk issues via the Bundle.”  

The Sphera SCRM CIM module provides users with: 

  • Compliance Incident Tracking: Prepares an automated list of ESG-related violations and enables measures and documentation to be initiated. 
  • Compliance Incident Reports: Generates reports from tracking data; reports are suitable for submission to the relevant regulatory authority, the German Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle, BAFA). 
  • Compliance Incident Dashboard: Documents all ESG risk-mitigation actions initiated, as well as all reports. 


About Sphera 

Sphera is the leading provider of environmental, social and governance (ESG) performance and risk management software, data and consulting services focusing on Environment, Health, Safety & Sustainability (EHS&S), Operational Risk Management (ORM), Product Stewardship and Supply Chain Risk Management (SCRM). For more than 30 years, we have served over 7,000 customers and a million-plus users in 80 countries to help companies keep their people safe, their products sustainable and their operations productive. Learn more about Sphera at Follow Sphera on LinkedIn.   

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