JARGONFREE Compass for Sustainable Contracting

Module I. Contextualizing corporate sustainability

This Module sets the baseline for the entire Compass. Its purpose is to help you and your colleagues to understand:

You can use this Module in three main ways:

As a shared orientation

Align procurement, legal/compliance, sustainability, contract management, business, product, technical, and quality teams on the big picture:

  • what corporate sustainability means and what business benefits it brings to companies.
  • how international guidelines and principles (e.g., the UNGPs, the OECD Guidelines), EU legislation, national laws, and self-regulation shape what companies are expected to do in relation to sustainability.
  • why contracts are the mechanism that carries those expectations through supply chains.

To build a shared risk-based sustainability due diligence process and align your company’s contracts with it

Align procurement, legal/compliance, sustainability, contract management, business, product, technical and quality teams on:

  • what risk‑based sustainability due diligence is, why it matters, and how to turn it into operational and contractual practices in your company’s specific context.
  • which risks matter most to your company, where they arise in the supply chain, what leverage your company has, and what information is needed to track progress. Prioritise by severity and likelihood.
  • how contracts can be designed to support compliance with international guidelines and principles, EU and national laws.

As a foundation for the Modules that follow

This Module prepares you for Modules II–IV by introducing the regulatory backdrop against which sustainability clauses operate.

Corporate sustainability defined next page