Ian Spaulding
SUSTAINABILITY
Spaulding says a number of factors are impacting ESG and supply chain management . One factor is the “ politicisation of ESG ”.
He says : “ ESG has become a politically charged term , particularly in the US where the backlash against woke capitalism has led to discussions about divesting government pension funds from ESG-related investments .”
This , he says , has given rise to so-called ‘ green hushing ’.
“ Some companies are reducing the external visibility of their sustainability initiatives , even though they continue to progress towards their goals ,” he explains .
“ European regulators , meanwhile , are tightening the reins on greenwashing , signalling a shift towards concrete actions and accountability in the ESG landscape ,” he adds .
Ian Spaulding
TITLE : CEO COMPANY : LRQA INDUSTRY : PROFESSIONAL SERVICES
Spaulding says : “ I am proud to be CEO
LRQA , which brings together decades of sector-specific expertise and data-driven insight to help our clients navigate a new era of risk .”
“ There has never been more pressure for responsible sourcing professionals to rethink approaches to meeting
ESG goals ”
IAN SPAULDING , CEO , LRQA
Another key factor says Spaulding is due diligence enforcement .
“ The regulatory landscape is evolving , making ESG performance disclosure mandatory with enforced penalties for noncompliance ” says , By way of example , he cites the EU ’ s Corporate Sustainability Due Diligence Directive , which he says “ gives legislative teeth to what has previously been a voluntary practice for businesses ”.
He adds that the German Supply Chain Due Diligence Act has “ already spurred complaints against multiple retailers for failures ”.
In the US , Spaulding points out the Uyghur Forced Labour Prevention Act “ continues to influence sourcing practices , resulting in halted shipments and increased enforcement ”. All of these developments emphasise the need for addressing material risks associated with company operations to improve business performance ,” Spaulding concludes .
A third factor impacting ESG performance is the “ emergence of risk in unexpected places ”.
“ ESG risks are extending beyond traditional areas ,” says Spaulding .
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