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Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component...

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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, suppliers cannot be legally responsible for ESG compliance; this should be the buying organization

B.

Yes, this helps to demonstrate the importance of compliance to ESG

C.

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

D.

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

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