The indicator is challenging because countries collect and define social violation data in very different ways. As a result, financial market participants struggle to apply the same criteria consistently across investee countries.
In Table 1, indicator 16 (Investee countries subject to social violations), industry requests guidelines to ensure comparability, as there is a variety of approaches to this and lack of underlying data.
The Annex to the recently published proposal for a Directive on corporate sustainability due diligence COM(2022) 71 provides helpful examples of typical social violations that investee countries may be in violation of.
European Supervisory Authorities (ESAs)
