Select ESG, social licence to operate and sustainability issues
A social license to operate (SLO) refers to the ongoing acceptance and approval of a company's operations by its stakeholders, including the local community, employees, and the broader public. This concept is increasingly intertwined with sustainability issues, as companies are expected to not only comply with legal regulations but also to act responsibly towards the environment and society. Achieving and maintaining an SLO requires transparent communication, ethical business practices, and active engagement with stakeholders to address their concerns and expectations. Sustainability issues such as environmental protection, resource conservation, and social equity are central to obtaining an SLO. Companies that prioritize sustainable practices—like reducing carbon footprints, ensuring fair labor conditions, and contributing to community development—are more likely to earn and retain public trust.