• Forética has presented its report 'The social factor of ESG. El papel de la taxonomía social de la UE en la estrategia de las empresas' prepared within the framework of theClúster deImpactoSocial, which Forética leadswith the participation of more than 60 Spanish companies.

• Employees, consumers and users, investors and funders, and legislative and institutional momentum have become the accelerators forunderstandingwhat are the new frontiers of the 'S'.

Forética has organized the first edition of the 'DEI Business Forum - Diversity, Equity and Inclusion', in which the report 'The Social Factor of ESG. 'The social factor of ESG. The role of the EU social taxonomy in the strategy of companies'.which analyzes the most relevant initiatives, actions and commitments at a global level linked to the integration of the social 'S' from a business perspective.

This unique forum for dialogue, knowledge and trends has been organized within the framework of the Social Impact Cluster, led by Forética and headed by Grupo Cooperativo Cajamar, Ibercaja, ILUNION, Mahou San Miguel, ManpowerGroup, Mapfre and Naturgy together with more than 60 companies.

According to the World Inequality Lab, inequality decreases between countries, but grows within countries, generating greater imbalances between the people that make up a society.

For its part, the International Labor Organization (ILO) estimates that around 27.6 million people in the world are in forced labor and 60% of the world's working population is involved in the informal economy, outside any social protection system. On the other hand, in terms of equality, if the current trend continues, the gender gap will take 132 years to close, according to the WEF.

In this context of urgent challenges, the business community's action in this area must be boosted. In the words of Germán Granda, CEO of Forética, "The social 'S' is in full transformation and acceleration. It is essential to articulate a more decisive and strategic commitment from the business sector in areas such as inequality, decent work, the value chain and responsibility towards consumers and users. The social taxonomy will serve as an instrument for channeling these elements".

The report 'The Social Factor of ESG. The role of the EU social taxonomy in the strategy of companies'. published by Forética within the framework of the Social Impact Cluster, highlights the important role played by social impact measurement as one of the most important and difficult areas that companies face when building their social strategy. He also lists the accelerators for understanding the new frontiers of the 'S': employees, consumers and users, investors and funders, and legislative and institutional momentum.

Along these lines, one of the latest reporting measures approved as part of the European Commission's proposal is more equal gender representation on the boards of directors of listed companies, according to which by 2026 at least 40% of non-executive directorships or at least 33% of all directorships, executive or otherwise, must be held by persons of the underrepresented sex.

In addition, the European Parliament has presented recommendations for a de facto ban on products produced or transported by people in forced labor conditions, something that the European Commission is also working on through a new Directive, aligned with the proposed Corporate Sustainability Due Diligence Directive.

Importance of establishing social standards

Ricardo Trujillo, Manager of Forética's Social Impact Cluster, says: "Social taxonomy is the most important mechanism that, in the near future, will mark the social commitments of companies and their accountability in sustainability. A good focus on the social 'S' allows to have under control the risks and impacts on human rights in the supply chain, minimize controversies, strengthen the legitimacy to operate and achieve a greater capacity for innovation and inclusion".

The meeting was opened by the Director of the Human Rights Office of the Ministry of Foreign Affairs, European Union and Cooperation, Fernando Fernández-Aguayo, who explained the implications for Spanish companies of recent global and European regulatory advances in the areas of human rights, due diligence, forced labor and equality, and stressed the importance of collaboration between companies and the public administration in this area.

In addition, the forum included the intervention of Jan Noterdaeme, Senior Advisor of CSR Europe, who presented the progress of the European project that Forética co-leads together with CSR Europe 'The People Leaders Hub. Making the Green Deal Inclusive' after the presentation in Brussels by Commissioner Nicholas Schmit at The European SDG Summit 2022.

The business commitment from the highest ambition in the field of DEI -Diversity, Equity and Inclusion- has been addressed by Eduardo Baamonde, President of Grupo Cooperativo Cajamar, and Raúl Grijalba, President of ManpowerGroup Spain, Portugal, Greece and Israel. The meeting also included a round table discussion on corporate action in the area of EID and social taxonomy, with the participation of Fernando Riaño, Director of Institutional Relations and CSR of the ONCE Social Group; María González, Head of CSR, Brand Management, Reputation and Sustainability at Ibercaja; Candela Aldao, Head of Sustainability at Mahou San Miguel; Anastasia Peñas, Corporate Director of Employee Experience at MAPFRE; and Beatriz Esteban, Environment and Social Responsibility at Naturgy.

The Social Impact Cluster 2022 is led by Grupo Cooperativo Cajamar, Ibercaja, ILUNION, Mahou San Miguel, ManpowerGroup, MAPFRE and Naturgy. The group is also made up of the following companies: AstraZeneca, Accenture, Adif, Airbus, Alsea, Atresmedia, Bayer, CaixaBank, Campofrío, Capital Energy, Cecabank, CEMEX, Cepsa, Chiesi, CIE Automotive, Coca-Cola Europacific Partners, Cuatrecasas, Damm, EDP, El Corte Inglés, Enagás, ENAIRE, Endesa, ENGIE, Enresa, ENUSA, Ferrovial, Fundación ONCE, Gestamp, Grupo Antolin, Grupo ASISA, Grupo Calvo, Grupo Eulen, Grupo Gransolar, GSK, IBM, ICO, IKEA, ISS, KPMG, Kyndryl, LafargeHolcim, Leroy Merlin, Lilly, L'Oréal, Mazars, Mercadona, MSD, Mutua Madrileña, OHLA, Pascual, PRISA, Quirónsalud, Reale, Redeia, Sacyr, Sanitas, SAP, Solarpack, Sprinter and Urbaser.

Since its creation in 2018, the Social Impact Cluster has focused on analyzing issues such as the integration of human rights into business strategy, the role of business in addressing inequality gaps, business impact on gender and diversity, and impact measurement.

To assist companies in integrating social aspects as a fundamental element, the Social Impact Cluster approach is complemented through Forética's alliances with global partners such as the World Business Council for Sustainable Development (WBCSD) and CSR Europe.

You can download the report here 'The social factor of ESG. The role of EU social taxonomy in corporate strategy'.