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Climate Change and ESG-related risks in Value Chains: What Board Directors need to know

Undertaking robust due diligence is essential to identify and mitigate human rights and environmental issues and risks in value chains, and presents opportunities to build organisational resilience. Knowledge of the legislation and guidance on value chair due diligence in the jurisdictions companies operate in helps board directors identify climate-adjacent risks and opportunities.

Developed for board directors, this briefing provides guidance on new, existing and proposed legislation on value chain due diligence, company obligations, and driving due diligence across value chains.

As well as legislation, board directors should be aware of the risks of parent company liability and disclosure of scope 3 emissions produced throughout the value chain – both of which are covered in this briefing.

Also included is an annex breaking down the impacts in scope and requirements for due diligence regulations in different jurisdictions, which is important when mapping the actions of companies’ subsidiaries, and direct and indirect suppliers across multiple jurisdictions.

This is the third in a series of learning materials on climate change as it relates to board duties and governance produced by the Commonwealth Climate and Law Initiative (CCLI) and the Climate Governance Initiative.

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Read the first quarterly update from the CCLI and CGI on Climate Change Litigation.

Read the second quarterly update from the CCLI and CGI on Climate Change Disclosures.

In collaboration with

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