Achilles

Growing Human Rights Focus

Companies are taking a more conscious approach to moving capacity and selecting suppliers. “We are seeing a particular focus around human rights and labour rights, as well as a particular focus around net carbon,” shared Paul. The rise of supply chain transparency acts in Europe, specifically Germany, have increased the focus on the human rights aspects of supply chains. Other EU member states will likely move to incorporate these themes into their compliance and regulatory protocols.

Climate in Focus

According to Paul, businesses are more than ever before ready to embrace climate change. “Undoubtedly there is a government pressure that is increasingly backed by regulation, but also by the desire from corporates to tackle climate change, and that has become a multi-stakeholder issue for some big brands who really want to demonstrate their credentials in an authentic way and move away from the accusations of greenwashing and so on.”

Shifting from Compliance to Strategy

Companies who have lagged in ESG efforts are now looking to get ahead of the curve. ESG is “no longer just a cost, but an investment to help with overall growth,” Paul said. “There is also the increased desire of lenders and financers to be seen to be operating at the highest levels of standards in terms of sustainability and ethics, and we know that many lenders will give preferential rates to organizations that can prove that they are well governed.”