Below is an excerpt from ISS ESG’s recently released paper “The EU Directive on Corporate Sustainability Due Diligence: Are Companies and Investors Prepared?” The full paper is available for download from the Institutional Shareholder Services (ISS) online library.
- The EU Commission’s proposal for a Directive on Corporate Sustainability Due Diligence (the Directive) goes beyond existing regulations related to responsible corporate behaviour.
- Human rights, labor rights and environmental due diligence in global value chains has never been more important than today.
- Investors and companies should prepare now for increasing regulatory requirements and public scrutiny.
- The industries identified by ISS ESG Norm-Based Research (NBR) to be most involved in human rights, labor rights, and environmental controversies in global value chains are Textiles & Apparel, Retail, Food Products, Automobile, and Electronic Devices & Appliances.
- ISS ESG Corporate Rating data demonstrates that the majority of companies in high-risk industries have not yet implemented sufficient due diligence to mitigate social and environmental risks and impacts along their value chains.
Explore ISS ESG solutions mentioned in this report:
- Identify ESG risks and seize investment opportunities with the ISS ESG Corporate Rating.
- Assess companies’ adherence to international norms on human rights, labor standards, environmental protection and anti-corruption using ISS ESG Norm-Based Research.
- Understand the impacts of your investments and how they support the UN Sustainable Development Goals with the ISS ESG SDG Solutions Assessment and SDG Impact Rating.
By Lisa Häuser, Vice President, ISS ESG (Lead Author). Lloyd Beale, Analyst, ISS ESG. Marie-Anaïs Meudic-Role, Associate, ISS ESG. Phuong Anh Nguyen, Analyst, ISS ESG. Victoria Nguyen, Analyst, ISS ESG.