Image description: A lot of colourful post-it notes, waiting to be deployed
I’ve had quite a few reach outs recently from tech companies developing various supply chain management or ESG risk assessment tools, which is giving me cause to reflect on the role of tech and human rights due diligence (HRDD).
There is no denying it’s really fancy stuff. Blockchain, machine learning, AI. My brain can’t actually compute the potential we have to connect datasets and understand huge global trading systems, predicting risk before it even happens. The potential for solutions is immense.
And so is the market! I saw one estimate put the size of the environmental and social sustainability software market at $990m in 2021 with a massive growth curve ahead.
So when I spoke with someone recently who said they were
“a solution looking for a problem”
...you'll forgive me for being a little sceptical (though they were a very nice person as it happens.)
I love a phone upgrade as much as the next consumer, but you might predict where I’m heading:
If you're playing in the ESG space, could you please get focused on fixing an actual human rights problem? Because this is about so much more than chasing VC and deploying post-its in a kanban scrum board thingummy, as fun as that is.
In the spirit of collaboration, I’ve decided to be helpful and compile a handy set of questions designed for
a) tech companies looking for ESG problems,
b) global companies being regularly canvassed to buy a new ESG product, or
c) human rights organisations thinking they can develop a new tech product.
For the sake of argument, I’m assuming the customer is a global company and we have a SaaS product focused on the -S- of ESG.
Here we go:
1. Has the product been designed through any engagement with people at risk of or suffering human rights abuses?
First hurdle fail, anyone?
Of course, not all products will need to survey exploited populations to get the design right. And I don’t want to be encouraging cowboy primary research. But I’d like to hear a considered answer as to why this isn’t appropriate for any -S- focussed product.
2. Is there a clear enough link between how the customer uses the product with the people at risk of aforementioned human rights abuses? Please describe that link, along with all the assumptions that exist along the way.
This is your causal pathway. If you don’t know what that means, feel free to get in touch with your nearest supply chain impact consultant (for example... email us!).
3. Will the product improve the customers’ understanding of real-world risk?
Like, actual human rights risk, not just media scraping or unsubstantiated noise.
4. How will the product improve the customers’ human rights due diligence decision-making?
Please be very precise on this one. I want to know how, exactly, the Chief Procurement Officer or Chief Financial Officer or Chief Commercial Officer is going to act differently after using your product, how you know that, and whether you have any evidence this will happen in real life. Extra points if you can get past the most CFO-y of my imaginary CFOs (who's a bit like the Gruffalo, but in pinstripes).
5. How will the product help the customer to establish a baseline from which they can take action and report on their -S- progress?
I slipped in no. 5 to give you an opportunity to develop some cool benchmarks and progression charts. The post-its will come in handy after all (you're welcome).
Number 6, however, is less easy:
6. How will this product increase accountability in the customers’ supply chain relations? Which means: will suppliers be more or less empowered as a result of this product’s existence? Will workers be more or less able to advocate to improve their own conditions?
If you can’t answer no.6, you might want to pick a new sector to play in.
Let me know how that goes down.
Meanwhile, if you're genuinely interested in some feedback on a product you're developing, please do get in touch.