How should business navigate supply chain sustainability when there are calls for deregulation?
A shift towards deregulation does not eliminate the continued demand for corporate growth and accountability. Companies that properly embed sustainability and due diligence into core business and risk management practices will be more proactively positioned to navigate the changing risk landscape.
Our latest viewpoint for EiQ by LRQA explores how businesses can avoid getting distracted by the regulatory noise and stay focused on business and impact.
Three facts that should influence your programs in 2025 ...
1?? Regulators and investors are still focused on sustainability: Laws on modern slavery, carbon emissions and deforestation still apply to businesses, even amid deregulation talks. The #CSRD, #CSDDD, forced labour laws and state-level #climate laws are still in place and companies must comply with existing and emerging requirements to avoid penalties and maintain their reputations.
?? Streamline your program design, governance and internal processes to be more efficient. Centralise and use data and technology more effectively. ??
2?? Human rights risks to business are rising: Despite the push for deregulation, the demand for corporate accountability remains. This includes in more developed markets where there are high levels of migrant workers, reduced union representation and there is a need to reduce the cost of production to be competitive especially in manufacturing and agriculture.
?? Proactively evaluate the direct and indirect impacts of geopolitics and human rights on your own operations, sourcing decisions and business continuity ??
3?? There is an urgent need for climate resilience: There is still very little substantive work on physical climate risk assessment and resilience especially in supply chains. With an increasing occurrence of disruptive climatic events, businesses with robust risk management protocols should expedite their physical climate risk assessment and response programs.
?? Conduct a proactive climate risk assessment and remediation plan for your business and supply chain. Offset any residual risks. ???
Companies that think strategically and remain committed to sustainable practices will not only comply with regulations but also build stronger, more resilient, and more accountable business models that are well-equipped to thrive over the medium and long-term.
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