The EU Warns "There Is No Escape" From Its ESG Environment Madness
by Mike Shedlock
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 EU's right on this