As part of the reform of the EU Non-Financial Reporting Directive, the European Commission plans to develop mandatory EU sustainability reporting standards. The analysis of the non-financial reports of 1000 European companies by the Alliance for Corporate Transparency has proven how companies fail to report relevant, specific and comparable information. While this is true for all sustainability matters, it is particularly exacerbated in the case of corporate impacts and risks along the supply chain.
This is in part due to confusion and lack of consensus on meaningful supply chain reporting criteria and metrics. Yet, as highlighted by the Project Task Force mandated to initiate preparatory work for the development of EU standards, corporate disclosures must reflect impacts and risks along a company’s value chain.
With the objective of developing consensus on meaningful supply chain reporting requirements, Frank Bold coordinated the Supply Chains Transparency Project in 2020. Building on the findings of the Alliance for Corporate Transparency, this initiative engaged over 30 supply chain experts through various rounds of consultation and online workshops. The work of this project has resulted in a joint civil society statement which outlines recommendations for standardizable supply chain data and indicators applicable across high-risk sectors, as well as providing sector-specifications for the Garment & Footwear, Food & Beverage, Extractive and Electronics industries.
The full statement is supported by 17 civil society organisations and can be read .
The main priorities covered by our recommendations include:
These proposals have been discussed and developed thanks to the input of over 30 supply chain experts and are supported by the following organisations:
Frank Bold, Sustentia, ShareAction, The Workforce Disclosure Initiative, Freedom Fund, Business & Human Rights Resource Centre, Mining Shared Value, International Corporate Accountability Roundtable, Clean Clothes Campaign, Anti-Slavery International, Interfaith Center on Corporate Responsibility, Transparentem, ECCJ, World Fair Trade Organisation, Poder, Fair Trade Advocacy Office, WWF.
Joanne Houston, EU Policy Officer at Frank Bold coordinating the research and consultation states “the recommendations of this project aim to help policy-makers and engaged stakeholders in the EU and globally to set the right priorities for the development of clear and useful reporting standards on supply chains. The information on companies’ supply chains risks and impacts can no longer remain invisible to the public, investors and companies alike”.
Wrong indicators may lead to misleading and meaningless disclosures, or may be outright impossible for companies to use. Therefore, the recommendations are based on a careful review of all existing reporting frameworks and and assessment of each recommended indicator based on the following criteria:
With less than a decade left to address the threat of climate change, the EU Commission has launched its Green Deal. And today, the EU Finnish Presidency conference on company law and climate change addresses the emerging consensus that businesses need to be held accountable for their contribution.
The "LIFE-Legal Actions - Right to Clean Air" (LIFE15 GIE/DE/795) project ended in November 2019. The Layman's Report, written for a general audience, summarizes the work and results of the project as well as its long-term environmental Benefits.
Are you interested in participating in a project with global impact? Are you tempted to use your expertise and presentation skills to promote systemic changes at EU level for the protection of the environment, climate and human rights? Do you want to deal with partners and policy makers in Brussels and strategically develop an international platform working together to strengthen corporate responsibility?
