TrusTrace COO Argues Supply Chain Traceability Is Now a Core Compliance Requirement

Saravanan Parisutham, Chief Operating Officer of supply chain traceability company TrusTrace, argues that supply chain data has shifted from a voluntary ESG impact reporting tool to a mandatory compliance necessity as regulations including the EU Deforestation Regulation, U.S. forced labour laws, and the CSRD take effect. Companies unable to provide verifiable, audit-ready supply chain documentation risk fines, blocked shipments, and loss of market access.

Parisutham distinguishes between impact data — self-reported social and environmental metrics used for voluntary ESG reporting — and compliance data, which must be concrete, legally defensible, and backed by verifiable documentation such as proof of origin, facility audits, and transaction-level records. Regulatory demands are shifting firmly toward the latter category: the EU Deforestation Regulation takes effect at year-end, while U.S. forced labour laws and planned EU bans are expanding in scope and enforcement. The CSRD also requires companies to disclose information about supply chain sustainability practices across their value chains.

The article highlights that supply chain compliance failures now represent one of the most consequential business risks, alongside traditional disruptions such as raw material shortages and shipping delays. Climate litigation is also expanding beyond greenwashing claims to scrutinise how companies integrate climate considerations into operations and whether they can substantiate those claims with verifiable data. Companies that master compliance-grade data are better positioned for regulatory change, more resilient to legal threats, and more trusted by investors and customers.

Parisutham calls on compliance leaders to invest in digital traceability platforms capable of mapping multi-tier supplier networks, capturing documentation at scale, and linking compliance records to purchase orders. He argues that supply chain traceability is evolving from a nice-to-have into a foundation for governance, resilience, and competitive advantage. For Indian exporters supplying European and U.S. markets, the growing regulatory demands for supply chain transparency — including deforestation, forced labour, and emissions data — create direct and immediate business requirements.

Key figure — EU Deforestation Regulation takes effect at end of 2025