Ms Caroline Spillane:

Most definitely the directive is welcome but the caveat is that its implementation will be challenging. We have got feedback that preparedness is probably a little bit behind the curve but I think that the sharing of information will be helpful.

In terms of levelling the playing field, first the implementation of this directive will mean that there is clarity across the European Union as regards the legal status. Second, it sends a signal to company shareholders that there is an expectation which I hope will, in turn, drive a practice among senior executives and board members to look at longer-term stakeholder value in a company. One of the things that we try to imbed in our guidance and training for directors is that they really need to think about longer-term stakeholder value as part of their strategic planning process. Allied to that is making sure that sustainability is a very significant element of strategic planning.

One last point is that consumers expect this. I mean that this is something that is going to be driven by everybody when making choices to buy services or products. Companies will respond positively and actively. Research has repeatedly indicated that companies that have a proactive approach to ESG probably do better. I think that there is a piece of research that indicated that even during Covid those companies that focused on having a resilient supply chain fared better. Companies will have a better bottom line if they get on board with this at an early stage.