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CIPS Ethical and Responsible Sourcing L4M4 Question # 23 Topic 3 Discussion

CIPS Ethical and Responsible Sourcing L4M4 Question # 23 Topic 3 Discussion

L4M4 Exam Topic 3 Question 23 Discussion:
Question #: 23
Topic #: 3

Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?


A.

No. ESG is not within the scope of a contractual document and should always be treated informally


B.

No. Suppliers cannot be legally responsible for ESG compliance; this should be the buying organisation


C.

Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously


D.

Yes. This helps to demonstrate the importance of compliance with ESG


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