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Climate and sustainability: how impending EU laws on ESG disclosures will be a matter of survival for Asian suppliers
- ‘There is no escape’ from impending European Union rules requiring sustainability reporting, Amfori president warns Asian suppliers
- ‘If you don’t start preparing now, you will be late if and when the legislation kicks in,’ Linda Kromjong says during a visit to Hong Kong
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Asian consumer goods suppliers to global brands should start strengthening their environment, social and governance (ESG) assessment and disclosure capabilities to stay competitive, according to an industry body.
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Impending regulations in the European Union, which is at the forefront on ESG legislation, will soon require tens of thousands of suppliers across the supply chain in Asia to report their ESG performance, said Amfori president Linda Kromjong.
Brussels-based Amfori provides digital tools and training for suppliers to do self-assessments on ESG performance and compare themselves with industry benchmarks, based on international standards.
“If you don’t start preparing now, you will be late if and when the legislation kicks in,” she told the Post.
Countries including Germany, the UK, Australia and Norway already have rules in place focusing on specific environmental and social aspects, and coming EU regulations will bring these all together, Kromjong said.
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