This article is a great read if you want to understand the impact of the SECs ESG regime and its impact on balancing the legal relationships between

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This article is a great read if you want to understand the impact of the SECs ESG regime and its impact on balancing the legal relationships between buyers and sellers. ESG is an issue for supply chains and an issue that presents risk and opportunities for industry and investors. Product and services providers focused on supply chain efficiency to reduce cost and wastage. Supply chain teams have for decades focused on reducing raw material requirements, energy costs and more efficient production methods. ESG presents a challenge however.

The price consumers will pay for products and services was never intended to account for the impact of ESG. Nor will products and services providers be able to rely on the traditional warrants that they have given for their products or services. As pointed out by the authors. The regime of representations and warranties, with their accompanying strict liability¢â‚¬â€if they are not true, there is breach ¢â‚¬â€ is unrealistic and ineffective, and often so much so as to be downright fictitious. Frequently, this regime is thought to lead to what is called a ‘tickbox’ or ‘checkbox’.

The SECs ESG regime will require a stricter interpretation of compliance than is currently practiced within supply chains. The consequential effect of ESG is the transparency it aims to bring through product evaluation, sourcing and reporting. It will set a standard that buyers and sellers can use to assess ESG compliance. With the impact of closer attention of product and service compliance that could lead to loss of contracts and additional costs.

This brings me invariably to cyber, as the SEC is developing cyber risk governance regulation in 2021. The SEC is setting its sites on cyber along with other Federal Agencies under Cyber-Supply Chain risk Management (C-SCRM) programs. Cyber has a significant material risk to capital markets and I expect the legislation will follow a similar path to ESG. The SEC is building its enforcement regime and the Department of Justice and Department of Treasury are also focusing in on cyber compliance and enforcement. Cyber risk governance fits with Federal plans for stricter oversight and assurance of C-SCRM.

#ransomware‚ #fisma‚ #ofac‚ #theaugustagroup‚ #theaugustaplan‚ #cybersecurity‚ #supplychainriskmanagement‚ #cyberriskmanagement‚ #compliance‚ #regulatorycompliance‚ #regulatoryoversight‚ #esg‚ #scrm‚ #cscrm‚ #fca‚ #cybercompliance‚ #cyberregulation‚ #cybergovernance‚ #falseclaimsact‚ #afcea‚ #afceacyber‚ #aws

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