Forética, New Report Outlines Four Keys to Effective Corporate Due Diligence

With the publication of the European Commission’s new proposal for a Directive on corporate sustainability due diligence, significant progress has been made at the European and global levels towards greater integration of sustainability at all levels within companies, their corporate governance, operations, subsidiaries, and value chains.

As highlighted by the analysis of the proposal for a Directive published by Forética, this new legislative impulse has the objective of increasing custody in environmental, social, and good governance (ESG) matters of the supply chains. This advance will serve to standardize legislation on human rights and business in Europe, in a context in which only 1 in 3 companies in the European Union are carrying out due diligence processes on human rights and environmental impacts.

The report has been published by Forética within the framework of the Social Impact Cluster. The document outlines four keys for an effective strategy that integrates human rights into the social sustainability agenda of companies:

Raising awareness.
Disclosing the business case of human rights and its link with sustainability.
The establishment of a roadmap for action, using due diligence as a reference guide.
Finding allies for greater impact.

The Social Impact Cluster is led by Forética and made up of more than 45 large companies. The Cluster fosters business ambition and action in the face of the challenges posed by social transformation and the fight against inequality.

Since its creation in 2018, the Social Impact Cluster has focused on analyzing issues such as the integration of human rights in business strategy, the role of business in addressing inequality gaps, the business impact on gender and diversity, and the impact measurement.

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