Impact Rankings

The development WILL impact the right to operate, require a change in the production process, have substantial cost implications or impact risks/liability of the business, environment or health.

Below, there is a non-exhaustive list of examples of developments with high impact (at the scale of one facility/site):

• The development COULD potentially or indirectly impact the right to operate, require a change in the production process, have substantial cost implications or impact risks/liability of the business, environment or health. Or, the development is of a significant business interest or added value to the company.

• Below, there is a non-exhaustive list of examples of developments with medium impact (at the scale of one facility/site):

• All other developments, including those that create/modify an administrative obligation or require a change in operating practices. Or, the development is of moderate business interest or potential value to the company.

• Below, there is a non-exhaustive list of examples of developments with Low impact (at the scale of one facility/site):

The development has no specific impact but is included for general awareness. 

Below, there is a non-exhaustive list of examples of developments with no impact (at the scale of one facility/site):

• Obligations to obtain a permit/license/authorization to operate or carry out a particular activity (such as use of restricted substances, or operate with ionizing radiation sources);

• Development limiting/shortening the validity period of a permit/license/authorization (for instance, from 5 years to 3 years);

• Adoption of obligations on classification, labeling, and packaging of chemical substances (or Globally Harmonized System of Classification and Labelling of Chemicals -GHS);

• Prohibitions or restrictions on the use/import for own use of explosive, chemical substances, or drug precursors;

• New or stricter air emission limits and wastewater discharge limits;

• Development or obligation that, due to non-compliance will lead to: shutdown or disruption of production above 1 week; business damage, applicable fine or investment necessary above USD 150k; or prison sentence applicable.

• Development extending the validity period of an existing permit (for example, from 5 years to 10 years); 

• Obligation on companies to adopt a plan/policy/strategy on EHS (such as workplace violence prevention, teleworking, workplace stress, or labor disconnection);

• Provide training on EHS (such as confined spaces, hot working, carcinogenic);

• Monitoring and reporting obligations (such as air emissions, wastewater discharges, waste generation);

• Measures to control emissions/discharges;

• Accident and illness reporting;

• Changes to the existing obligations on GHS;

• Adoption of a national plan/strategy/program, or other that requires a relevant authority to tighten existing requirements or create new (e.g. air emissions requirements) in the near future;

• Development or obligation that, due to non-compliance, will lead to: temporary (less than 1 week) shutdown or disruption of production; business damage, applicable fine or investment necessary above USD 10k but less than USD 150k;

• Exemptions from mandatory requirements, or marketable green energy certificates.

• Change of the reporting authority  or change in the timing for submitting report;

• Adoption of a national  plan/strategy/program that is not imposing direct obligation on companies and it is not clear whether and when new/stricter obligations will be imposed on companies in the future;

• Voluntary (e.g. energy building) certificates, voluntary certification framework (e.g. for permanent carbon removals), or voluntary seals (e.g. good employer);

• National ratification of international conventions, which do not impose direct obligations on companies;

• Development or obligation that, due to non-compliance, will lead to: business damage, applicable fine or investment necessary less than USD 10k; tax reductions, one-off government grants, and other incentives/benefits having small or moderate financial gain/cost-saving potential.

• Background news about an enforcement case;

• A law re-enacting existing obligations without changes.

HIGH

MEDIUM

LOW

NO IMPACT

The development WILL impact mandatory sustainability requirements for companies’ operations, products, and value chains and require changes in business activities. Or the development WILL have significant financial implications (including opportunities) or impact risks and liability of the business. Or the development is of significant business interest to the company. 

Below is a non-exhaustive list of examples of developments with high impact (at the scale of a corporation): 

The development COULD potentially impact corporate sustainability practices around companies’ operations, products, and value chains and require changes in business activities. Or the development COULD have moderate financial implications (including opportunities) or impact risks and liability of the business. Or the development is of moderate business interest or added value to the company.    

 Below is a non-exhaustive list of examples of developments with medium impact (at the scale of a corporation):

All other developments, including those that create or modify administrative obligations. Or the development is of some business interest or potential value to the company. 

Below is a non-exhaustive list of examples of developments with low impact (at the scale of a corporation): 

The development has no specific impact but is included for general awareness. 

Below is a non-exhaustive list of examples of developments with no impact (at the scale of a corporation): 

• New sustainability obligations introduced for the first time to businesses;
• Sustainability reporting obligations and updates modifying the scope and content of reporting; 
• Supply chain due diligence obligations, including both environmental and social aspects; 
• Simplification of sustainability requirements; and
• Anti-ESG trends or deregulation. 

• New fiscal incentives for sustainability-related initiatives. (Although fiscal incentives could be considered of Low Impact depending on what the incentive is about, they are of greater interest and importance to the Corporate Sustainability Offering); 
• Mandate on authorities to create sustainability-related requirements applicable to companies; 
• National initiative, policy, plan, strategy, etc. that sets out governmental Sustainability objectives; 
• New voluntary sustainability labeling schemes for products that would bring new financial and business opportunities (Normally, voluntary schemes would be considered Low Impact. However, schemes that support sustainability initiatives, even voluntary, are usually linked with fiscal or administrative incentives (such as tax reduction and priority for public procurement), thus of greater interest and importance to the Corporate Sustainability Offering); 
• Updates during the review of proposals on anti-ESG or deregulation that could lead to substantial changes in the regulatory outlook (for example, when a proposal is voted against or receives disagreement); 
• Voluntary guidance providing detailed information to implement an existing requirement (this is the only available guidance, or the guidance is clarifying for the first time compliance with the requirement. The requirement itself does not provide information on compliance. Therefore, the guidance is of relevance).

• Launch of new research project on Sustainability issues by the government; 
• Establishment, cancelation, or replacement of authorities (with modified competency); 
• Voluntary tools and guidance that support existing sustainability requirements (other guidance already exists, and this one provides additional information on compliance);
• Ratification of international conventions and treaties. 

• The development merely reminds companies of existing obligations, deadlines, etc.; 
• A law re-enacting existing obligations without changes; 
• The development changes the name of relevant authorities (without changing the competency); 
• Changes to administrative procedures within an authority.