The revival of the Code of Conduct – the new sharp climate tool in the CSRD era?
Mikael Salo
Sustainability manager, sustainability & ESG professional, value driven changemaker. Moderator and speaker.
For many years, a company's code of conduct for suppliers has been a fundament and important tool for requirements on human and labor rights, environment, business ethics, how audits will be performed and the consequences of non-compliance, etc.
The Code of Conduct has been an important, but still quite passive control tool, whose potential has not been fully exploited.
But something has changed.
I note more extensive updates and sharp requirements, for example on requirements and audit demands on conflict minerals. But especially when it comes to climate where more and more require an alignment with the Paris Agreement and Science Based Targets initiative. The asks mainly comes from large companies who are committed to net zero-targets and have cleaned up their scope 1 and 2, and now turning focus to the scope 3. But I also notice requirements from companies that have not yet got their own climate action plan in place.
Still requirements are relatively softly formulated, but I imagine that with the introduction of CSRD and ESRS, the requirements will increase in sharpness and drive a significant business risk of being non-compliant over time.
The Code of Conduct is to be the tool for climate transition.?
Or what do you think?
???? B2B Growth Strategist | Outreach Services | Strategic Partnerships in the Iberian Market
8 个月That's interesting, Mikael!
Acting Head of Sustainability at Atea Norge
1 年I think you're very right that we're moving towards an era where implementation and due diligence are quickly becoming key parts of a company's sustainability efforts - the time for action is here. The regulations will force everyone to truly step up, and it will be a bumpy journey for many!
Correct - look at the CSDDD, CoC have a central role in due diligence.
Paving the way to Net-Zero in the real estate industry!
1 年I agree Mikael Salo! I see CSRD as a gamechanger where non compliance will not only mean not ticking a regulatory box for companies, but rather also setting them up to not meeting customer expectations. Complying with CSRD will be the new norm, and with that definitely work as a solid code of conduct where compliance will be a hygiene factor