ESG Special Topic Series (XII)-Deconstructing EHS m88 casino bonus code Chain Management

Background:In recent years, the Coronavirus (COVID-19) pandemic has brought many new challenges and uncertainties to global m88 casino bonus code chains. To deal with such challenges, some companies have increased their number of suppliers, while others have further developed their upstream and downstream capabilities to protect their m88 casino bonus code chains. m88 casino bonus code chain management is an important dimension of Environmental, Social and Governance (“m88 casino bonus code”) risk management. This article intends to help companies understand some of the key issues involved in ESG m88 casino bonus code chain management. It provides information regarding ESG disclosure standards and some of the legislative trends of ESG m88 casino bonus code chain management in various overseas countries.

I. What is ESG m88 casino bonus code Chain m88 casino bonus code?

Currently there is no definition of “ESG m88 casino bonus code Chain Management” under the existing laws of the People’s Republic of China (“PRC”). However, certain existing international and domestic standards can help us understand the meaning of ESG m88 casino bonus code chain management.

1. Global Level:According to m88 casino bonus code Consolidated Set of m88 casino bonus code Global Reporting Initiative Sustainability Reporting Standards (“GRI Stm88 casino bonus codeards”), we understand that a m88 casino bonus code chain refers to sequence of activities or parties that provide products or services to an organization. A “product” refers to an article or substance that is offered for sale or is part of a service delivered by an organization; a “service” refers to the action of an organization to meet a demand or need.

2. Domestic Level:China has introduced many laws, regulations and recommended standards regarding m88 casino bonus code chains, which define the meaning of “m88 casino bonus code chains” or “green m88 casino bonus code chains.” These include the Guiding Opinions of the General Office of the State Council on Actively Promoting m88 casino bonus code Chain Innovation and Application (the “Guidm88 casino bonus codeg Opm88 casino bonus codeion”), and the m88 casino bonus code Chain Risk Management Guideline (GB/T 24420—2009), m88 casino bonus code Chain Management (GB/T 26337), and Green Manufacturing—Green m88 casino bonus code Chain Management in Manufacturing Enterprises-Guideline (GB/T 33635-2017) (the “Green m88 casino bonus code Chain Management Standard in Manufacturing Enterprises”), an enterprise evaluation index system of green m88 casino bonus code chain management in the machinery, automobile and electronics industries. According to the Guiding Opinion, a “m88 casino bonus code chain” refers to an organizational form of efficient coordination during the process of a product’s design, procurement, production, and sales and service with the goal being quality improvement and efficiency by means of resource integration. The Green m88 casino bonus code Chain Management Standard in Manufacturing Enterprises defines a “green m88 casino bonus code chain” as having a goal of environmental protection and resource saving， which exists through the entire process from product design to raw material procurement, production, transportation, storage, sales, usage and disposal and ensures a company’s economic activities in harmony with the environment protection goals of the upstream and downstream m88 casino bonus code relationship. The definition of a “green m88 casino bonus code chain” that empowers the environmental (E) elements is therefore based on the definition of a “m88 casino bonus code chain.”

Based on the above analysis, the concept of ESG m88 casino bonus code chain management could be understood as the entire process and activities of a company’s comprehensive planning, organizing, coordinating and controlling, which involves the flow of business, logistics, cash and information with the help of technology, to practice an ESG strategy, in order to unify the economic value, environmental justice and the public welfare of a company.

II. Why is ESG m88 casino bonus code Chain Management important?

1. Voluntary Stm88 casino bonus codeards:From a global perspective, GRI specifies the disclosure requirements on m88 casino bonus code chain management in the GRI Standards, i.e., the status of a company’s m88 casino bonus code chain (including the type, number, location, currency valuation, major brands, products and services, labor intensity, of the signing suppliers, any major changes and the impact of such changes, etc.) should be disclosed during the reporting period. The China Enterprise Reform and Development Society released the Guidelines on Corporate ESG Disclosure. The guidelines take m88 casino bonus code chain management as an independent disclosure index under social indicators and set out the qualitive or quantitative disclosure requirements. Meanwhile, there are other compliance management requirements for suppliers under environmental protection and corporate governance indicators.

2. Mandam88 casino bonus codery Standards:From a global perspective, some countries or economic and political communities like m88 casino bonus code European Union (“EU”), Germany, the United Kingdom and the United States have released regulations to supervise ESG supply chain management. For instance, in June 2021, the Federal German Parliament passed the Supply Chain Due Diligence Act, requiring German companies analyze and report the relevant compliance matters of entities involved in their supply chains (including Chinese suppliers) in connection with environmental protection, human rights and other aspects. This will come into effect on January 1, 2023. On February 23, 2022, the EU Commission released a proposal for the Directive of the European parliament and of the council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937. The proposal imposes due diligence obligations in connection with environmental and human rights protection on the following EU and non-EU companies involved in supply chain management: (a) EU companies (i) with over 500 employees and a net turnover of more than EUR 150 million, or (ii) with over 250 employees and a net turnover of more than EUR 40 million, provided that at least 50% of the turnover is generated in the EU; and (b) non-EU companies (i) with a net turnover of more than EUR 150 million, or (ii) with a net turnover of more than EUR 40 million, provided that all of the turnover is generated in the EU. In addition, the EU Commission published the Directive 94/62/EC of 20 December 1994 on packaging and packaging waste and other directives and regulations to set out the specific requirements for supply chain management in connection with packaging.

From a domestic perspective, China has released certain laws m88 casino bonus code regulations involving environment, health m88 casino bonus code safety (“EHS”) on m88 casino bonus code chain management, indicating that the compliance management of suppliers is becoming increasingly important for companies to prevent compliance risk. In some cases, a company that fails to conduct thorough due diligence on its suppliers may face civil liability, administrative penalties or even criminal punishments. Therefore, it is now common for companies to conduct regular EHS compliance and EHS supplier audits.

Disclosure rules for listed companies are emphasizing the increasing importance of ESG disclosure. The Guidelines for Investment Relationship Management for Listed Companies became effective on May 15, 2022, and provides that listed companies shall disclose a company’s ESG information during the management of the investment relationship. There are no further details available on how to disclose such information, but we believe that information related to m88 casino bonus code chain management should also fall within the scope of ESG disclosure.

III. How should companies deal with ESG m88 casino bonus code Chain Management?

The ESG m88 casino bonus code chain management of an enterprise can only be achieved with the cooperation of multiple departments such as procurement, legal, risk control, public relations and finance. We recommend that enterprises strengthen the management of their m88 casino bonus code chains by taking the following measures:

1. Enterprises should establish, improve and operate their own ESG m88 casino bonus code chain management systems, and implement systems for the selection, training, assessment, supervision and elimination of suppliers, as well as supplier specific ESG management policies. In particular, the ESG m88 casino bonus code chain management systems of export enterprises should be established based on the full identification of the regulations and local practices of the countries and regions where their customers are located. It should be noted that multinational corporations should fully understand and apply their ESG m88 casino bonus code chain management systems, to meet the domestic and foreign compliance requirements regarding ESG m88 casino bonus code chain management.

2. Enterprises should strive to include ESG related representations and warranties in their m88 casino bonus code chain related commercial contracts. They should explicitly require their suppliers to comply with (i) the international standards and domestic regulatory requirements that they commit to and that they expect their suppliers to comply with, (ii) their policies regarding the ESG management of suppliers, and (iii) appropriate reporting mechanisms when ESG problems arise, to strengthen contractual constraints.

3. Enterprises should regularly organize internal and external auditors to conduct m88 casino bonus code chain ESG or EHS compliance reviews, especially for suppliers of critical raw materials. Auditors can help enterprises establish and/or upgrade their ESG m88 casino bonus code chain management systems, identify ESG risk points, and urge suppliers to track and solve problems in a timely manner.

The ESG management of m88 casino bonus code chains plays a vital role in the ESG risk management of enterprises and affects their sustainable development capacity. Alongside our traditional long-term legal and compliance services, we can perform legal due diligence into customized ESG compliance reviews and incorporate ESG factors and considerations when drafting and reviewing commercial contracts. We are able to assist our valued clients in all areas of ESG compliance.

We can assist you to establish or improve your company's or your supplier's ESG management systems. We can also draft relevant rules and policies, assist with your ESG and EHS due diligence, draft and review m88 casino bonus code chain-related commercial contracts, and provide ESG training and other services. Please contact us by email for further information: ecoenvpro@junhe.com

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