Aoife McCarthy of the Ethical Supply Chain Program tells Toy World how businesses can stay compliant with global ESG standards.
In a world where business practices are under increasing scrutiny, ensuring you have the correct processes in place to safeguard workers’ rights has never been more important. Across the globe, ever more governments are requiring companies to disclose the impacts of their business activities on human rights and the environment. Organisations of all sizes must evaluate their impact across a spectrum of Environmental, Social and Governmental (ESG) factors, and finding a trusted partner to help ensure your company meets these changing requirements is fast becoming a priority.
The term ESG is now commonplace. In its simplest terms, it’s about how businesses impact the world. While environmental concerns have long taken centre stage, the ‘S’ in ESG – referring to social responsibility – is increasingly being recognised for its importance. ESG due diligence is no longer an expectation, but a global, legal requirement
Last year, global regulations regarding ESG advanced significantly, leaving many companies unsure where to begin. Some legislative examples include: the German Supply Chain Due Diligence Act (LkSG); the US Forced Labor Prevention Act (UFLPA); and the European Commission’s Corporate Sustainability Due Diligence Directive (CSDDD). Organisations doing business in any of these regions are required to implement comprehensive due diligence programmes that demonstrate their understanding of the negative impacts their business activities might have on human rights and the environment. Companies are also expected to prove they have measures in place to prevent and remedy these impacts.
Even the smallest companies can be indirectly affected. Regardless of the size of a company, failure to comply carries with it a real risk of financial and/or reputational harm.
To find out more about existing and upcoming ESG due diligence legislative requirements and discover how businesses can stay compliant with global ESG standards, click here to access the full article from the Ethical Supply Chain Program, which appeared in the February 2024 edition of Toy World.