From COP29 through to the legislative developments during the European Parliament session, this month has, once again, been eventful. From a personal perspective, we were very proud of the success of our Modern Slavery Conference on the 7th November - read more about that here. For everything else, here’s a summary of all the key developments over the last month, plus a couple of useful publications.?
Key Developments?
- COP29 in Baku introduced key climate terms, including UNFCCC (the UN treaty and secretariat), COP (the annual summit), and NCQG (climate finance goals). Key discussions also covered NDCs, global warming, the Paris Agreement, net zero, and carbon offsets, with hopes to finalize rules for carbon credit trading.?
- On 19th November, 2024, the EU Council adopted the EU Forced Labour Ban, which forbids the placing and making available on the Union market, or the export from the Union market, of any product made using forced labour. Based on an assessment of possible risks, the competent authorities will be able to initiate an investigation to determine whether the prohibition has been violated. ?
- On 14th November, the European Parliament approved a one-year delay for companies to comply with the EU's deforestation regulation, requiring products sold in the EU to be free from deforested land. Large companies now have until December 2025, with smaller enterprises given until June 2026, to align with the law’s objectives to combat climate change and biodiversity loss.?Trilogues regarding other amendments are ongoing.
- On 8th November 2024, EU leaders announced the Budapest Declaration on the New EU Competitiveness Deal, committing to strengthen the Single Market, advance green and digital transitions, and simplify regulations. The plan emphasises innovation, sustainable energy, and trade policies to ensure resilience, global influence, and climate neutrality by 2050.?
- The European Council has approved a regulation establishing the EU's first carbon removal certification framework. This voluntary system will verify and quantify carbon removals through technologies like Direct Air Capture and natural carbon sinks, ensuring transparency and preventing greenwashing. The framework aims to support the EU's Green Deal, with organizations required to meet strict criteria for carbon storage, verification, and long-term environmental benefits to earn certification. The regulation will take effect 20 days after publication in the EU's Official Journal.?
Case Law?
- Earlier this year, migrant workers gained permission to appeal the decision made in 2023 that their case against Dyson could not be heard in the English courts. The case was heard on 26th November by the Court of Appeal, although a judgement has not yet been delivered. The case in question is regarding claims of forced labour and abusive conditions brought by 24 workers from a factory in Johor where Dyson products were made. This follows news from August that Dyson had dropped its libel claim against Channel 4 and ITN for reporting on the story.??
- In early November, Shell won an appeal against a landmark ruling that required it to accelerate carbon reduction efforts. While the appeals court recognised that Shell had a responsibility to reduce greenhouse gas emissions to protect people from global warming, it dismissed the 2021 ruling that ordered Shell to cut its absolute carbon emissions by 45% by 2030 compared to 2019 levels, including those caused by the use of its products.?
- Nestlé and Procter & Gamble investigated claims that palm oil from illegally cleared land in Indonesia’s Rawa Singkil Wildlife Reserve has entered their supply chains. The Rainforest Action Network reported deforestation in the area, with palm oil plantations encroaching on protected land. Both companies have suspended sourcing from implicated suppliers while conducting further investigations.
- Amnesty International has criticised FIFA's evaluation of Saudi Arabia's 2034 World Cup bid, which was given an ‘average score of 4.2 out of 5’, calling it a "whitewash" of the country's human rights record, with no meaningful reforms to protect workers or activists. FIFA also came under fire for publishing a report on migrant worker abuses from the 2022 Qatar World Cup, which confirmed the organisation's responsibility for compensation, yet FIFA launched a Legacy Fund without offering remedy to the workers. Amnesty International and the Sport & Rights Alliance have urged FIFA to halt Saudi Arabia's bid for the 2034 World Cup unless significant human rights reforms are implemented. Concerns include discrimination against LGBTQ individuals and the exploitation of migrant workers, with Amnesty warning of severe consequences without credible guarantees of change.?
Trends?
A substantial number of the conversations this month were around the just transition, climate finance, and what that means for business. The failure of the UN plastics treaty talks in Busan indicate that we have significant progress to make as a global community, but here’s some examples of action currently being taken.?
- Peace Brigades International UK has called for a law mandating corporate human rights and environmental due diligence to prevent abuses in global supply chains. Their report highlights case studies of harm in Colombia, Mexico, Indonesia, and Honduras, urging the UK to meet its human rights and climate commitments.?
- SGS launched IMPACT NOW, a suite of services including CSRD Pre-Assurance, ESG Report Assurance, and ESG KPI Verification. These tools help companies meet EU sustainability reporting requirements, ensuring accurate ESG disclosures, compliance, and stakeholder confidence.?
- A KPMG study shows over 40% of top global companies now link executive pay to ESG performance, with a rise in sustainability-focused leaders and climate goals. The report highlights progress on CSRD compliance and increased adoption of standards like GRI, SASB, and TCFD.?
- Deloitte introduced four new ESG solutions on the Workiva platform to help businesses meet the EU’s Corporate Sustainability Reporting Directive (CSRD) requirements. These tools focus on double materiality, financed emissions reporting, regulatory gap analysis, and workflow tracking, enhancing efficiency and compliance as CSRD expands its scope to over 50,000 companies by 2025.?
Publications?
- On 20th November 2024, the Human Side of Business and The Centre for Child Rights and Business published a White Paper highlighting the alarming rise in child labour cases in U.S. supply chains, particularly in agriculture and protein industries. The report provides practical guidance for businesses to address child labour and align with international human rights standards through improved due diligence and robust corporate policies?
- The Global Child Forum and Boston Consulting Group has released their 2024 Benchmark Report assessing whether the world’s most influential companies are complying with and protecting children’s rights.?
- We released our White Paper on Current Approaches to Forced Labour, looking at the current approaches of companies across the garment, agriculture, and renewable energy sectors in addressing forced labour with regards to both risk and due diligence measures. Evidence of current approaches largely suggest that most companies, even if compliant with the relevant laws, have not established proper systems for risk management and due diligence, leading to the persistence, or at least an increased risk, of forced labour in their supply chains.
How can Ardea help?
Ardea International understands that businesses must ensure that they establish proper due diligence procedures. We support our clients by helping them identify how to manage impacts and risks, ensuring they meet legal compliance obligations and integrate best practices into their policies, procedures, and company culture. We do this through robust engagement with stakeholders, which provides a good foundation for sustainable and resilient business practice.
To find out more about how we can support you, get in touch with us at: [email protected]
