In the last three years, Vertaeon has extensively assessed value chains from a risk perspective, including ESG risks. We have combined that intelligence with advanced sub-tier mapping for the manufacturing sector, especially automotive, electronics and industrial. This extensive risk content and analytics can get your organization ready, efficiently and effectively, for the upcoming ESG compliance requirements.
What are the focus areas for the emerging (2022-2023) ESG regulations? There is a specific focus on environmental and labor areas. Environmental broadly includes Scope 1/2/3 emissions and climate-related risks. Labor focuses on human rights aspects including child labor, forced labor, modern slavery and safety.
These bring environmental and human rights metrics from a ‘nice to have’ to a legal framework. Another important aspect is the impact assessment for not only your company but also your global supply chains, which raises the complexity level.
Emerging Compliance Directives with ESG impact
- UFLPA – Uyghur Forced Labor Prevention Act – US
- German Act on Corporate Due Diligence in Supply Chains – Germany
- SEC Climate Disclosure Proposal – US
- EU CSRD – Corporate Sustainability Reporting Directive – European Union
- Climate Disclosure rules for federal contractors – US
You can find more details here.
How is Vertaeon assessing this and supporting clients?
Vertaeon, enabled by our extensive Risk and ESG content, have launched dedicated ESG modules and SaaS platform to support our clients’ strategy and compliance on the above rules and directives.
Part 1: Developing strategy to formulate a plan of action – what is “material” and “double-material”?
- Identifying rule guidelines
- Performing requirement check – How is your company affected by this ruling?
- Conducting timeline reviews – When do you need to complete milestones?
- Extracting and assessing relevant data – Via our customized cloud platform
- Assessing reporting requirements for financial and other disclosures
Part 2: In this concurrent part, we are conducting an in-depth assessment of key segments impacted. An important part of supply chain mapping is the risk identification of entities and product segments. We can support you effectively with our considerable domain expertise and Artificial Intelligence (AI) and machine learning tools to handle millions of data points.
Part 3: We leverage the risk assessments to support reporting and archive requirements. Our team also supports development of a mitigation/control plan as operational and strategic input for internal teams.
Contact us to discuss due diligence assessments and potential mitigation approaches.