Ok next question. There are a range of incentives we need, so regulatory, some market driven. Here are a few that come to mind:
(1) Mandated transparency and due diligence. We have seen this now for the top 6,000 EU companies, Chinese state-owned enterprises, relating to specific contexts such as Myanmar or on trafficking/forced labour or conflict minerals. Approaches to "know and show" need to be standardised - the work of the UN Guiding Principles Reporting Framework is important here.
(2) Objective benchmarks for measuring not just the intent of companies but their actual performance. This is why we started work on the "Corporate Human Rights Benchmark" with a range of partners to rank the top 500 publicly listed companies in the world, and also develop sector-specific rankings to help drive competitive behaviour.
(3) The two above points only work if they help drive investor and consumer behaviour, and also that of governments in terms of public procurement (often 20% of GDP), export credit, trade missions and so on. We are beginning to see some of these "economic consequences" explored in some public procurement initiatives, as well as NCP decision making under the OECD Guidelines.
Zahid Torres-Rahman said:
Great insights so far! Let's move on to our second question:
2. What are we learning about the key enablers for business seeking to improve their ESG performance, including the role of good governance and regulatory environments?