Lego to mandate sustainability targets across supply chain

TPRM Insights: The Lego Group has launched a Supplier Sustainability Programme to enhance collaboration with suppliers in reducing its carbon footprint. The initiative requires suppliers to report carbon data and set emission reduction targets for 2026 and 2028. This program supports Lego's climate goals, including achieving net-zero emissions by 2050 and reducing absolute carbon emissions by 37% by 2032. Suppliers will report annually, and Lego plans to tie part of its employees’ bonuses to its carbon footprint, expanding this metric to include scope 3 emissions over time.

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OCC, Fed fine Citi $136M for repeated risk management, data governance failures

TPRM Insights: Citigroup has agreed to pay $135.6 million in fines imposed by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board for failing to address risk management, data governance, and internal control deficiencies outlined in 2020 consent orders. The OCC levied a $75 million fine, citing Citi's inadequate risk management framework and policies. Concurrently, the Fed fined Citi $60.6 million for delays in enhancing its data quality management program and other risk control measures. Despite progress, Citi CEO Jane Fraser acknowledged that improvements in data quality management have been slower than needed. In 2020, Citi was fined $400 million for similar issues.

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A New Era Of Transparency: How Mandatory ESG Reporting Will Reshape Business

TPRM Insights: The European Union's Corporate Sustainability Reporting Directive (CSRD), effective from 2025, will mandate comprehensive ESG reporting from companies of all sizes, marking a significant shift in business operations. This regulation emphasizes transparency, requiring detailed reporting on environmental, social, and governance performance. To comply, businesses must adopt a data-driven approach, setting clear goals and fostering collaboration. Leveraging technology and AI for data analysis will be crucial for achieving compliance and gaining a competitive edge in sustainability.

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EU Regulation Spurs Supply Chain Software Funding

TPRM Insights: Verdantix forecasts a US$7 billion market for supply chain sustainability software by 2029, driven by the EU's stringent due diligence rules and social disclosures, such as the Forced Labour Ban. This sector is projected to grow 34% annually, with manufacturing and retail leading the spending. Jessie Wilson, ESG and Sustainability Analyst at Verdantix, highlights Europe's regulatory leadership but expects spending in North America to rise due to extraterritorial directives. Globally, geopolitical disruptions are set to boost software spending to US$2.8 billion, with AI-enhanced, smart supply chains transforming efficiency, ethics, and sustainability.

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