Expression of Interest - Corporate Sustainability Due Diligence

Corporate Sustainability Due Diligence refers to the process by which companies assess and evaluate the environmental, social, and governance (ESG) risks and opportunities associated with their operations, supply chains, investments, and business activities. This process is similar to traditional due diligence procedures undertaken in mergers and acquisitions or investment transactions, but with a specific focus on sustainability factors.

N.B. Sustainable HRM Skillnet training applies to those living and working in the Republic of Ireland only.

Key aspects of Corporate Sustainability Due Diligence include:

Environmental Impact Assessment: Evaluating the environmental footprint of the company's operations, including energy consumption, emissions, waste generation, and resource use.

Social Impact Assessment: Assessing the company's social impacts on stakeholders such as employees, local communities, customers, and suppliers. This may involve examining labour practices, human rights issues, community engagement, and diversity and inclusion policies.

Governance Review: Reviewing the company's governance structures, policies, and practices to ensure transparency, accountability, and ethical behaviour. This may include assessing board composition, executive compensation, risk management, and compliance with relevant regulations and standards.

Supply Chain Analysis: Investigating the sustainability performance of the company's suppliers and business partners to identify potential risks related to environmental degradation, labour exploitation, or human rights abuses.

Legal and Regulatory Compliance: Ensuring that the company complies with relevant environmental, labour, human rights, and other regulations and standards in all jurisdictions where it operates.

Identification of Risks and Opportunities: Identifying and prioritizing sustainability-related risks and opportunities that may impact the company's financial performance, reputation, and long-term sustainability.

Reporting and Disclosure: Assessing the company's sustainability reporting practices to ensure transparency and accountability in disclosing sustainability performance to stakeholders.

By conducting Corporate Sustainability Due Diligence, companies can identify potential risks and opportunities related to sustainability issues, mitigate negative impacts, capitalize on emerging trends, and enhance their overall sustainability performance and resilience.

A course on CSDD may cover the following topics:

Overview of CSDD and its importance in assessing environmental, social, and governance (ESG) risks and opportunities.

Overview of relevant national and international laws, regulations, and standards related to sustainability and corporate responsibility.

Principles and Guidelines for CSDD:

Introduction to principles and guidelines for conducting effective CSDD, such as the OECD Due Diligence Guidance for Responsible Business Conduct and the UN Guiding Principles on Business and Human Rights.

Best practices and industry standards for integrating sustainability considerations into due diligence processes.

Scope and Objectives of CSDD:

Defining the scope and objectives of CSDD, including identifying stakeholders, assessing risks, and evaluating impacts.

Understanding the purpose and outcomes of CSDD, such as informing decision-making, enhancing transparency, and mitigating risks.

Methodologies and Tools for CSDD:

Overview of methodologies, approaches, and tools for conducting CSDD assessments, such as risk assessments, impact assessments, and materiality assessments.

Practical guidance on selecting and applying appropriate tools and techniques based on the context and objectives of CSDD.

Environmental Due Diligence:

Examination of key environmental considerations in CSDD, including pollution, resource depletion, climate change, and biodiversity loss.

Strategies for assessing environmental risks, impacts, and opportunities throughout the due diligence process.

Social Due Diligence:

Exploration of social issues relevant to CSDD, such as labour practices, human rights, community engagement, and stakeholder relations.

Guidance on conducting social impact assessments, stakeholder consultations, and human rights due diligence.

Governance Due Diligence:

Discussion of governance-related aspects of CSDD, including corporate governance structures, ethics, integrity, and transparency.

Evaluation of governance risks and controls, board oversight, and compliance with relevant regulations and standards.

Integration with Business Processes:

Strategies for integrating CSDD into existing business processes, such as mergers and acquisitions, investment decisions, supply chain management, and project development.

Collaboration with internal stakeholders, including senior management, legal, compliance, finance, and sustainability teams.

Case Studies and Practical Exercises:

Real-world case studies and examples illustrating CSDD practices in different industries and contexts.

Practical exercises and simulations to apply CSDD methodologies and tools, analyse scenarios, and develop action plans.

Reporting and Communication:

Guidelines for preparing CSDD reports and communicating findings to stakeholders effectively.

Strategies for engaging with investors, regulators, customers, employees, and other stakeholders on CSDD outcomes and recommendations.

Continuous Improvement and Monitoring:

Approaches for monitoring and evaluating the effectiveness of CSDD processes and outcomes over time.

Strategies for incorporating feedback, learning from experience, and continuously improving CSDD practices.

N.B. Sustainable HRM Skillnet training applies to those living and working in the Republic of Ireland only.

Sustainable HRM Skillnet will host a CSDD programme when core numbers have been achieved via the expression of interest. Content may differ from the above. If you wish to discuss an inhouse CSDD programme for your staff please contact sustainablehrmskillnet@cipd.ie.