Impending EU Laws on ESG are On the Way
Please note Impending EU Laws on ESG Disclosures Will Be a Matter of Survival for Asian Suppliers.
Impending regulations in the European Union, which is at the forefront on ESG legislation, will soon require tens of thousands of suppliers across the supply chain in Asia to report their ESG performance, said Amfori president Linda Kromjong.
“If you don’t start preparing now, you will be late if and when the legislation kicks in,” she told the Post.
The Corporate Sustainability Reporting Directive, due to be rolled out next year, will require companies to disclose how sustainability issues, such as climate change, impact their business and how their operations in turn affect people and the planet.
Some 50,000 companies – all large companies and listed small and medium-sized firms – will have to make such disclosures, up from 11,700 large companies and public entities with more than 500 employees mandated under existing legislation. Auditing of the disclosures will be mandatory.
These companies will in turn require their global suppliers to disclose their sustainability data, such as greenhouse-gas emissions, so that they can calculate their own environmental footprints and social risk exposure.
The European Parliament’s environment committee last Thursday backed tougher legislation that will force firms with over 250 staff and annual worldwide turnover of more than €40 million (US$42.8 million), to check and report whether their suppliers within and outside Europe use slave or child labour, or pollute the environment.
No Escape From the Madness
‘There is no escape’ from impending European Union rules requiring sustainability reporting, Amfori president Linda Kromjong warns Asian suppliers
Also note that Brussels-based Amfori provides digital tools and training for suppliers to do self-assessments on ESG performance and compare themselves with industry benchmarks, based on international standards.
And you probably can guess what that means.
If not, then please make another note: Hong Kong to pay 30 per cent more for ESG jobs as companies fight for talent to meet sustainability targets.
If you don’t think this madness is hugely inflationary, then you just are not thinking at all.
This post originated at MishTalk.Com
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for Strategic Studies did a comparison in 2020 between the 1990 armies in Europe and now and if you want you can read it here: https://www.iiss.org/-/media/files/research-papers/european-defence-policy-in-an-era-of-renewed-great-power-competition—iiss-research-report.pdf