How Achilles is Navigating New Sustainability Laws

As global supply chains face unprecedented scrutiny and regulatory transformation, businesses across the Asia-Pacific (APAC) region are navigating a rapidly evolving landscape of sustainability and compliance. 

At the forefront of this shift is Smitha Shetty, Regional Director – APAC at Achilles Information, whose expertise spans ESG integration, digital supply chain solutions and regulatory risk management.

Speaking to Procurement Magazine, Smitha shares her insights on how directives like the Corporate Sustainability Due Diligence Directive (CSDDD), the Carbon Border Adjustment Mechanism (CBAM) and India’s BRSR Core framework are reshaping corporate priorities, driving greater transparency and compelling organisations to embed sustainability deep within their operations. 

How is the Corporate Sustainability Due Diligence Directive (CSDDD) changing the way global businesses approach supply chain management and what practical steps should companies take to ensure compliance?

The CSDDD is reshaping global supply chains by transforming sustainability from a voluntary commitment into a legal obligation. It requires companies to go beyond surface-level reporting and embed due diligence into the core of their governance structures.

This involves mapping supply chains in greater detail, assessing risk at every level and actively addressing environmental and human rights concerns. Companies can no longer limit oversight to direct suppliers - they must now extend their visibility to Tier 2 and Tier 3, particularly in high-risk regions.

Our latest Global Sustainability Priorities Survey for 2024/25 shows that 50% of businesses plan to allocate at least 10% of their annual budgets to sustainability efforts next year. This signals a clear and lasting shift in how companies are prioritising ESG.

In practice, this means enhancing supplier monitoring, integrating ESG criteria into procurement processes and ensuring there are clear mechanisms for grievance and remediation.

Digital platforms like Achilles play a crucial role in this transformation, enabling organisations to monitor supplier performance in real time, manage ESG risks across their networks and respond quickly to emerging compliance requirements.

In a fast-evolving regulatory environment, technology provides both agility and assurance, helping businesses align with directives such as CSDDD and CSRD while building long-term resilience and transparency.

What are the main challenges emissions-intensive, trade-exposed industries face under the Carbon Border Adjustment Mechanism (CBAM), and how can companies adapt their strategies to remain competitive while meeting sustainability goals?

The Carbon Border Adjustment Mechanism (CBAM) marks a structural shift for emissions-intensive sectors such as steel, cement and aluminium. By attaching a carbon price to imports based on their embedded emissions, it levels the playing field between EU producers and global exporters.

However, for businesses in regions with uneven regulatory maturity - particularly across parts of APAC - the most immediate challenge lies in the limited availability and reliability of upstream emissions data.

Without this transparency, calculating carbon footprints becomes problematic, increasing exposure to tariffs. As highlighted in a CSEP working paper, Indian exports to the EU could face cost escalations of 20 to 35% by 2034 due to CBAM.

To remain competitive, companies must strengthen emissions measurement at the product level, deepen supplier engagement and accelerate the shift toward low-carbon inputs. Solutions like Achilles Carbon Reduce provide the tools to quantify and certify emissions reductions in alignment with ISO 14064, helping businesses demonstrate compliance credibly and consistently.

Looking ahead, adapting to CBAM is not only about managing risk - it’s a strategic opportunity.

Investing in cleaner technologies, exploring alternative markets and forging partnerships for low-carbon innovation will position companies as leaders in the global transition. While the mechanism introduces near-term complexity, it also incentivises long-term competitiveness through sustainable industrial transformation.

Can you elaborate on the impact of BRSR Core requirements on value chains, particularly for businesses operating in the APAC region, and explain how these disclosures drive improvements in ESG performance?

The introduction of the BRSR Core framework by SEBI marks a pivotal moment for ESG in India and the wider APAC region.

By requiring the top 1,000 listed companies to disclose ESG performance across their value chains, it has elevated sustainability from a strategic ambition to an operational imperative. ESG is no longer confined to boardroom discussions - it is now a key consideration in procurement, supplier management and day-to-day business decisions.

This shift is driving a fundamental change in how companies interact with their supply networks. Businesses are expected to collect and report granular data from suppliers and contractors, covering areas such as emissions, energy usage, labour standards and workforce diversity. In turn, this is prompting many to embed ESG criteria into contracts, KPIs and vendor evaluation processes.

As disclosure requirements grow more demanding, digital solutions are becoming essential. At Achilles, we’ve seen first-hand how technology can enable this transformation.

Organisations using our platform have improved their sustainability scores by up to 47%. Suppliers who have worked with us since 2020 now average 76.5 in governance, with notable gains across environmental and social metrics as well.

The BRSR Core framework is more than a compliance measure, it is driving systemic change. By embedding ESG performance deep into the value chain, it is fostering a culture of transparency, accountability and continuous improvement that is quickly becoming the standard across the region.

With ESG regulations evolving rapidly, especially in developing markets, what are the most significant adoption challenges you see for companies and how can platforms like Achilles help overcome these hurdles?

One of the most significant challenges companies face today is the fragmentation of ESG regulations.

With varying standards across regions - such as CSRD and CBAM in Europe, BRSR Core in India - businesses are under pressure to navigate a complex and sometimes inconsistent compliance landscape. This is particularly difficult for companies operating in emerging markets, where suppliers often lack the capacity, training or tools to meet new disclosure requirements.

Data quality is another persistent concern. Ensuring ESG data is reliable, auditable and consistent across geographies is no small task. 

The Achilles risk management platform is designed to bridge these gaps. We support companies in capturing high-quality data, conducting thorough risk assessments and validating supplier credentials to ensure regulatory readiness.

Our on-the-ground teams in APAC work directly with suppliers to build ESG capability, while our ethical audits provide a deeper layer of assurance.

This comprehensive approach helps businesses protect their brand, meet compliance requirements and build stronger, more resilient supplier relationships across regions.

How does Achilles leverage technology and data-driven insights to enhance supply chain transparency and resilience and what benefits do your clients typically realise from integrating your solutions into their operations?

At Achilles, we integrate AI-powered analytics, real-time risk monitoring and rigorously verified supplier data to deliver deep, actionable insights into global supply chains.

Our platform doesn’t just map supplier networks - it continuously screens for ESG and compliance risks, including media-based reputational threats, allowing businesses to intervene before disruptions occur. 

We help companies manage all risks, across all suppliers, in all geographies. This global, end-to-end visibility is essential for organisations navigating increasing regulatory complexity and stakeholder expectations.

The results speak for themselves. Our clients have achieved up to $25 million in annual cost savings, reduced procurement cycle times by as much as 30 days and significantly improved ESG performance - with sustainability scores rising by up to 47%.

Among audited suppliers, we’ve seen a 50% higher likelihood of code-of-ethics adoption and a 12.5% decrease in reported fatalities.

For one global energy major, we enabled real-time monitoring of more than 20,000 suppliers across 25 countries, spanning 13 risk categories from environmental performance to financial stability. This level of oversight helped the organisation strengthen resilience, improve governance and stay ahead of evolving regulatory demands.

In today’s interconnected economy, supply chain visibility and data-driven decision-making are critical. Achilles provides the intelligence infrastructure companies need to operate responsibly, efficiently and with confidence.

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