ESG ESG Supply Chain & Circular Economy

Question 1

What does 'supply chain transparency' mean in the ESG context?

Accepted Answer

Mapping and disclosing information about suppliers, their ESG practices, and associated risks throughout the value chain

Answer

Supply chain transparency involves identifying, assessing, and disclosing information about supplier ESG practices, labor conditions, and environmental impacts, often extending to Tier 2 and beyond.

Question 2

What does the U.S. Uyghur Forced Labor Prevention Act (UFLPA) require of U.S. importers?

Accepted Answer

Certifying that no goods were manufactured using forced labor, particularly from Xinjiang, China, with rebuttable presumption of violation

Answer

UFLPA creates a rebuttable presumption that goods produced in Xinjiang involve forced labor, requiring importers to provide clear and convincing evidence to the contrary for customs clearance.

Question 3

What is 'supplier code of conduct' in ESG supply chain management?

Accepted Answer

A document setting minimum ESG and ethical standards that suppliers must meet to do business with a company

Answer

A supplier code of conduct defines minimum requirements on labor rights, environmental standards, anti-corruption, and safety that suppliers must adhere to as a condition of the business relationship.

Question 4

What is the circular economy principle of 'designing out waste'?

Accepted Answer

Redesigning products and processes so that waste is eliminated at the design stage rather than managed at end-of-life

Answer

Circular economy design eliminates waste by making products durable, repairable, reusable, or compostable from the outset—treating waste as a design failure rather than an inevitable output.

Question 5

Which legislation requires large U.S. public companies to disclose their supply chain due diligence on conflict minerals?

Accepted Answer

Dodd-Frank Act Section 1502

Answer

Dodd-Frank Section 1502 requires SEC-reporting companies to disclose whether their products contain conflict minerals (3TG) from the DRC region and detail due diligence steps taken.

(ESG) Certified Environmental, Social, and Governance Consultant Practice Test

(ESG) Certified Environmental, Social, and Governance Consultant Practice Test

ESG ESG Supply Chain & Circular Economy