Below is an excerpt from ISS Corporate Solution’s recently released article “Due Diligence: A Core Concept Underpinning the CSRD Framework”. The full article is available on the ISS Corporate Solutions (ICS) online library.
The European Sustainability Reporting Standards (ESRS), adopted at the end of July, require companies to comprehensively report on their due diligence processes under the four pillars of governance; strategy; impact, risk, and opportunities; metrics and targets.
The concept of sustainability due diligence has been developed and refined through extensive stakeholder consultations since the early 2000s and is embedded in the UN Guiding Principles for Business and Human Rights (UN GPs) and the OECD Guidelines for Multinational Enterprises (OECD GLs).
Endorsement of these frameworks varies widely between regions and industries, with Europe showing the highest level of support for the UN GPs and the OECD GLs.
Reinhilde Weidacher, Managing Director, Head of EMEA Solutions, ISS Corporate Solutions