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Home • Insights • Legal Insights • Only 1 in 3 businesses undertake ESG due diligence

Only 1 in 3 businesses undertake ESG due diligence

By Sarah Rothwell, Ardea International
17 Mar 2020

The EU Commission has recently published study revealing that only 1/3 of business respondents stated that they currently undertake some form of due diligence on their human rights and environmental impacts. In response, civil society has called for mandatory and enforceable EU due diligence rules.

The study’s respondents indicated that EU-level regulation on a general due diligence requirement for human rights and environmental impacts may provide benefits for business.

A majority of stakeholders favour a cross-sectoral approach for an EU law, which will ensure effective harmonisation, legal certainty, a level playing field, and allow for a non-negotiable standard for business relationships throughout the supply chain.

Colleen Theron, CEO of Ardea International, said:

“The study’s findings are not at all surprising. In our experience, most businesses have a long way to go in order to understand, measure and manage their human rights impacts in their direct business operations and across their supply chains.

“Ardea International supports the call for mandatory and enforceable EU due diligence rules. However, from the moral, operational and commercial perspectives, enlightened businesses should act of their own volition to build strong foundations and not wait for the legislation be enforced.”

Training by Ardea International

We provide a range of introductory, intermediate and experienced level online and in-person training courses. The modules and workshops support companies to understand and manage their impacts, meet their legal requirements and explore their beyond compliance and leadership ambitions.

The current curriculum includes workshops on sustainable procurement, compliance with environmental and human rights laws and risk management and due diligence solutions. Ardea International also produces bespoke training for individual companies and inter-sector cohorts.

Please email us to discuss your needs.

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