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15 July 2024


On 14 June 2024, ASI participated in the ISEAL Global Sustainability Symposium, which provided an opportunity to explore what effective due diligence partnerships can look like, and the roles different actors can play to achieve sustainability goals. The Symposium brought together representatives from various Voluntary Sustainability Standards focusing on different commodities, civil society organisations, companies, and government representatives for a day of expert insights, discussions and networking. The event also offered participants an opportunity to brainstorm and collaborate on adapting sustainability systems to evolving stakeholder expectations.

Here are some of ASI’s key takeaways from the Symposium:

  • Balance between Legislative Compliance and Innovation

Complying with new European sustainability legislations can pose significant resource challenges, including risk of sustainability governance shifting back to a regulation-driven approach. This shift might lead companies to focus more on compliance and reporting rather than on innovation and actual impact. Additionally, new legislations reduce sustainability as a competitive differentiator. Therefore, it is essential to identify new areas for competitive advantages. The key question is: How do we maintain ambition to go beyond compliance and continue driving meaningful sustainability efforts?

  • Due Diligence and Credibility

Achieving full compliance with Corporate Sustainability Due Diligence (CSDD) requirements may be challenging for most companies. Standard systems can assist, but the credibility of these schemes is crucial. Enhanced due diligence and transparency might lead companies de-risking their sourcing, potentially exacerbating issues by pushing high-risk producers to less regulated markets. Voluntary Sustainability Standards operating in high-risk zones cannot exclude these areas from certifications. Addressing this requires increasing credibility of assurance in high-risk countries.

  • Support for SMEs is needed

Small and Medium Sized Enterprises (SMEs) face increasing disadvantages under new regulations. They will require additional support for due diligence systems and risk assessments to comply effectively.

  • Transparency and Disclosure

In some sectors there is lack of incentives for transparency due to negative perception when disclosing some of the issues.

  • Traceability

Discussions revolved around how to ensure traceability is fit for purpose by considering different objectives, data needs, system design, and implementation strategies. Firstly, the primary drivers for traceability in each sector should be identified, whether it involves data flow (traceability of data and impact), or the physical link to materials (physical traceability). Understanding where certified members are and how long it would take them to transition to new traceability system is crucial. Although technical challenges in traceability have been largely addressed, to ensure smooth implementation and minimize the risk of fraud, incremental changes should be prioritized over large-scale shifts.

  • Due diligence and remedying human rights harms

Discussions touched on how ASI has integrated the UNGP effectiveness criteria into its complaints mechanism and emphasized the importance of having a gender-responsive complaints mechanism due to the additional barriers women face when accessing remedy. The need to engage with potential affected stakeholders in multiple ways was highlighted, including establishing relationships with local actors to ensure culturally sensitive ways to raise concerns and facilitate mediation for remedy in the most effective way.

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