Each year, LRQA analyses key Environmental, Social and Governance (ESG) trends impacting global businesses and supply chains.
In 2023, persistent trends such as climate impact, legislation and technology remain relevant, but new patterns emerged that transform the way we perceive and treat them as ESG risks.
The 'Lead the way' report highlights how climate strategies and human rights are now interconnected, for example, and businesses are urged to perform due diligence on their climate action to ensure a 'just transition' and avoid inadvertent negative social impact.
The report also outlines the importance of new and existing due diligence laws, such as the recently confirmed Corporate Sustainability Due Diligence Directive (CSDDD), the Uyghur Forced Labor Prevention Act and Germany’s Supply Chain Due Diligence Act, prompting businesses to respond and avoid penalties for non-compliance.
2023 saw increased scrutiny on US domestic suppliers for labor malpractices, challenging assumptions about high-risk areas. The report advocates for worker voice integration, enhanced traceability, and supply chain risk mapping tailored to specific risks, highlighting that proper due diligence spans the entire value chain.
Explore the top seven trends fully and learn how to proactively address risks in the coming year.
