SLCP&ESG | Trustworthy social and labor data, a step towards global change

When disclosing ESG reports, companies must prioritize sustainable economic practicesand understand human rights impacts, supported by reliable social and labor data (including the Integration Assessment Framework (CAF) from SLCP), to empower their greentransformation. This is a global task, not a choice.

"S" in ESG, a complex dimension

The "S" in ESG represents society, and compared to "E" and "G", this dimension presents a more complex definition.

The environmental and governance aspects mainly focus on the impact of companies on the Earth and their internal and political operations, while the social aspect emphasizes the relationships established between companies and individuals within organizations and broader communities. This includes a range of areas, including the company's health and safety protocols, commitments to diversity, equality, inclusivity, and the way management interacts with employees. It may also involve evaluating the company's collaboration with local community leaders, reviewing labor practices such as forced labor or child labor in suppliers, and ensuring product safety.

Sometimes, due to its breadth and complexity, the S element of ESG may fall behind in certain situations, and many companies and regulatory agencies hope to make progress in the S dimension.

SLCP and CAF, tools to assist enterprise transformation

In the current context, the crucial role of social and labor data is undeniable. SLCP provides important raw social and labor data that can be used as part of a company's social reporting methodology. These data, combined with ratings from tools such as SAC's Higg FSLM, can contribute to reliable ESG reporting.

Given the complexity of new reporting regulations, SLCP plays an undeniable role in helping businesses achieve compliance.

Why is SLCP data useful for ESG reporting

The Integration Assessment Framework (CAF) publicly available by SLCP is an innovativetool for collecting and validating data on social and labor conditions. The collected and validated data is applied to numerous institutions and brands worldwide, helping to reshape the company's ESG reporting methods and ensuring compliance with mandatory requirements.

By promoting simplified comparisons and analysis of social and labor data, CAF also supports the development and implementation of more effective improvement plans. This not only enhances the credibility of social auditing, but also promotes a corporate culture of transparency and accountability, consistent with the increasing emphasis on corporate responsibility in global business practices. In the rapidly developing field of corporate responsibility, it is evident that companies need to adapt to constantly evolving ESG standards.

With the increasing focus on human rights due diligence and ESG compliance, the role of SLCP has become increasingly important. SLCP's CAF not only stands out as a compliance tool, but also serves as a catalyst for true change, providing companies with standardized, actionable, and shareable data. This enables businesses to meet legal requirements while exceeding the ethical expectations of stakeholders and the wider society. Theuse of SLCP tools is not only beneficial for ESG reporting, but also a fundamental step towards improving global working conditions.