"In an era marked by geopolitical tensions and conflicts, businesses worldwide are increasingly compelled to adopt measures that safeguard their supply chains and consider their own business conduct. These measures are essential to ensure resilience and operational continuity.

However, this focus on securing supply chains while ensuring the viability of the business raises a question: Are human rights, social, and environmental standards still essential for globally operating businesses, or is the emphasis on green and digital transformation waning?

The answer lies in the evolving landscape of environmental, social, and governance priorities. Businesses mustn’t lose track of such concerns, even as they navigate complex geopolitical landscapes. Instead, they should take a holistic approach to ESG, integrating these principles into their core ESG strategies.

EU Green Deal

The EU Green Deal has been instrumental in shaping the ESG landscape, driving legislative initiatives that can be broadly categorized into four areas: reporting, decarbonization, due diligence, and product-specific ESG initiatives.

These initiatives aim to create a sustainable and resilient economy by setting stringent standards for businesses operating within and beyond the EU.

The product-specific regulations lay down stringent sustainability criteria. These include minimum shares of recycled secondary raw materials in new products, lifecycle carbon footprint assessments, maximum thresholds for substances of concern, and minimum safeguards on human rights and social standards. Additionally, criteria on reuse, recycling, and repurposing help promote ..."

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This article was originally published in Bloomberg Law.