Supply chain sustainability risk management in the era of mandatory due diligence: A literature review

The emerging supply chain due diligence regulations share one common objective: Firms must address the potential adverse impacts their supply chain activities pose to people and nature. So far, firms and scholars have framed these supply chain sustainability risks (SCSR) mainly as risks to the enterprise. The required shift toward this outward-facing approach to SCSR calls for new management practices. To investigate the extent to which the current SCSR literature can inform this new approach, we conducted a systematic literature review of 66 articles published between 2004 and 2024 and compared them with the supply chain due diligence outlined in international guidelines. The current SCSR literature is largely misaligned with the outward-facing approach to risk, relying on -based identification measures and firm-centered impact assessments, while overlooking potentially affected stakeholder perspectives and consequences of SCSR management for suppliers and sourcing regions. We outline several future research avenues to bridge these gaps, including stakeholder-led identification, science-based assessment methods, fair cost distribution measures, and responsible disengagement strategies. With this work, our study guides researchers in producing knowledge that can support firms both in preventing the potential adverse impacts of their supply chains and in meeting regulatory requirements. • Reviews 66 academic articles on supply chain sustainability risks (SCSR) • Shows misalignments between SCSR management and due diligence processes • Outlines seven research avenues for an outward-facing approach to SCSR management • Directs research toward supporting firms in preventing SCSR and meeting due diligence obligations