DocuSign and Bonterms Partner to Standardize ESG Clauses, Driving Sustainability and Investor Value
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- Simplified ESG Integration: The Docusign-Bonterms partnership standardizes ESG clauses, streamlining adoption across industries.
- Investor and Customer Alignment: Standardized clauses build trust and value by meeting growing stakeholder demands for sustainability.
- Regulatory Readiness: Enables organizations to comply with global ESG regulations, mitigating risks and future-proofing operations.
Why it matters:
Sustainability is no longer optional. Investors, customers, and regulators are demanding businesses demonstrate accountability on environmental, social, and governance (ESG) issues. Yet, many organizations struggle to operationalize these goals.
Docusign’s solution:
Docusign has partnered with Bonterms to introduce standardized ESG clauses, making it easier for companies to integrate sustainability into contracts and policies. This initiative helps businesses stay competitive, reduce risks, and align with global regulations.
The challenge:
According to the 2024 MIT State of Supply Chain Sustainability report, many companies lack resources to meet sustainability goals despite growing pressure from investors and customers. ESG clauses offer a practical solution, but inconsistent drafting and terminology have created inefficiencies.
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The fix:
“By standardizing ESG clauses, it’s possible to provide clear, consistent metrics and enforceability frameworks,” Docusign stated. Bonterms’ open-source Standard Agreements, vetted by a 100-lawyer committee, simplify compliance and transparency.
The details:
- ESG clauses ensure suppliers follow ethical sourcing, meet emission reduction targets, and enforce labor standards.
- This partnership begins with greenhouse gas emission clauses and will expand to other ESG priorities.
Why now:
Global regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) raise the bar for ESG accountability. Standardized clauses help businesses navigate these demands while enhancing stakeholder trust. As EY noted, companies prioritizing ESG are “less risky, better prepared for uncertainty, and well-positioned for the long term.”
Looking ahead:
The Docusign-Bonterms partnership removes barriers to adoption by offering pre-vetted, easily accessible ESG clauses. Businesses can implement these clauses to drive sustainability across their value chains and demonstrate leadership in responsible corporate governance.
Bottom line:
Now is the time for organizations to embrace standardized ESG clauses. This initiative equips businesses to address regulatory challenges, build stakeholder trust, and lead the way in sustainability.
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