Nordic Spotlight

Nordic companies have firmly established themselves as global leaders in integrating children’s rights into business practices, according to the State of Children’s Rights & Business 2024 report published by Global Child Forum in collaboration with Boston Consulting Group. The report reveals that Nordic firms are now outperforming their global peers by 37% overall, with standout results in Governance and Collaboration (G&C) and Workplace (WP) policies and initiatives.

This year’s report, which evaluated 1,802 companies across multiple sectors, highlights a dramatic turnaround for the region, where companies such as Spotify and ICA have risen from previous underperformance to outshine their sector averages. Not only are Nordic companies exceeding global standards, but they also surpass the European average by 13%, with particularly strong results in the Marketplace (MP) category, which reflects how companies market their products while ensuring respect for children’s rights.

“Nordic companies have strengthened their work on children’s rights in just one year, and it is particularly encouraging to see how companies that previously performed below average have made progress,” says Ekin Björstedt, Secretary General of Global Child Forum. “However, challenges such as child labour in value chains and digital safety are growing, and companies must continue to develop their efforts.”

Nordic Companies lead with long-term commitment

Of the 55 Nordic companies assessed, 46 outperformed their sector’s global average, cementing the region’s leadership in responsible business practices. Major players like Telenor (score of 9.1 out of 10), Neste (9.0), Telia (8.8), Norsk Hydro (8.8) and Orkla (7.8) have integrated children’s rights into their governance and business strategies, driving home the message that children’s rights are not just an ethical imperative but a core business priority.

This comes as companies face increasing global scrutiny regarding their supply chains and how they address critical societal issues such as climate change and youth mental health and physical health. Nordic businesses have responded to these challenges by improving their internal governance structures, focusing on family-friendly workplace policies, and ensuring that their products and services contribute to child well-being.

Why Nordic firms are outperforming their global peers

Several factors seem to have contributed to Nordic companies being at the forefront of children’s rights integration:

• Cultural commitment to social responsibility: Nordic societies prioritise social welfare, human rights, and equality, which translates into a strong foundation for corporate responsibility. Businesses in the region are expected to uphold these values, driving them to lead on children’s rights issues.
• Robust regulatory frameworks: Nordic countries are known for having some of the most stringent regulations concerning corporate governance, including labour practices and child protection. These frameworks not only encourage businesses to meet high ethical standards but also hold them accountable. Additionally, there has been a noticeable shift in recent years, with Nordic companies increasingly reporting on these issues. In the past, many companies in the region took their compliance with such regulations for granted and did not highlight it in their reporting. Today, however, there is a greater recognition of the importance of transparency in these areas.
• Global supply chain pressures: As global supply chains grow more complex, so too do the challenges of ensuring children’s rights. Nordic companies, many of which operate on a global scale, have prioritised addressing these issues, particularly around child labour and safe digital engagement.
• A strategic business imperative: Integrating children’s rights into business is not just a moral stance for Nordic companies but a strategic one. From dialogues with some of the highest-scoring companies, we know that long-term sustainability and reputational benefits provide compelling reasons for firms to lead in this area.

Setting the bar for future leadership

Nordic companies are setting a new global standard for responsible business practices, demonstrating that integrating children’s rights can be both ethically sound and business-savvy.

This past February, 70 Nordic companies and networks,including Nokia, Novo Nordisk, Ørsted, Vattenfall, Maersk and Bestseller, released a statement urging their governments to vote in favour of the Corporate Sustainability Due Diligence Directive (CSDDD)* – a mandatory human rights and environmental due diligence law – at the upcoming European Council meeting noting:

As Nordic businesses, we recognise that there is a critical need for business to play their part in addressing the urgent human rights and environmental challenges we face globally…

Nordic states have always shown leadership on matters of corporate sustainability and respect for human rights. We call upon our governments to continue to play a leadership role by supporting the CSDD in the final stages of the legislative process, including by voting in favour of the initiative at the upcoming Council meeting.

By outperforming global and European counterparts and embedding children’s rights into their corporate frameworks, they have not only secured a leading role in this area but have also aligned business success with long-term sustainability.

The road ahead: ensuring long-term progress

Despite the positive trends, the need for vigilance remains high, and challenges, such as child labour becoming more complex, highlight the need for continuous improvement.

Additionally, concerns about children’s health, both mental and physical, are increasingly important. Online, children face growing risks to their mental wellbeing, such as cyberbullying, screen addiction, and exposure to harmful content, which companies must actively address. In terms of physical health, the impact of food and beverage marketing on children’s diets is another area where corporate responsibility is critical. While Nordic firms have made significant strides, there is still much work to be done in ensuring children are protected from these evolving risks, both online and offline.

Global Child Forum’s work continues to shine a spotlight on how children’s rights must be central to the future of responsible business, and Nordic companies are poised to lead this charge.

*In June 2023, the European Parliament adopted its position on the CSDDD, with a majority of members supporting the proposal.