Supply chain News and trends

The EU Corporate Sustainability Due Diligence Directive (CSDDD) fits in the trend of emerging sustainability regulations across the globe.

Despite uncertainty over the scope of the directive and the final text to be agreed by the EU lawmakers, companies and institutions should start thinking about testing their current compliance programmes and policies and how, if necessary, they can amend them.

It will be important to monitor legislative developments closely and to start making all possible preparations for the eventual implementation of the CSDDD.

Via EcoVadis

As EU member states close in on a common negotiating position on the Corporate Sustainability Due Diligence Directive (CSDDD), they are fighting over whether companies should do due diligence for their entire value chain or just the supply chain.

The directive initially proposed by the Commission on 23 February 2022 would require member states to introduce legislation making companies responsible for violations of human rights and environmental standards along its entire value chain.

This would mean that a company would have to conduct due diligence on its suppliers and clients, and it could also be held liable for how its product is used and disposed of.

Via EcoVadis

The European Commission has unveiled its proposals to introduce mandatory due diligence legislation which would make companies responsible for human rights and environmental issues in their global supply chains.

The law would initially apply to larger companies within the European Union (EU) with more than 500 employees and a global net turnover of more than €150 million (US$169m), and those based outside the EU but which generate the same turnover threshold within the single market.

After two years, it would be extended to smaller companies - with at least 250 employees and a turnover of €40 million (US$45m) - in "high impact sectors" including textiles, as well as agriculture and mining.

Via EcoVadis

Last week, the EU institutions reached an agreement on new legislation directed at ensuring that minerals and metals entering the 28-nation bloc are transparently and responsibly sourced and do not play a role in financing human rights abuses and conflict in high-risk areas.
The regulation establishes due diligence provisions for sustainable sourcing practices as of 1 January 2021, covering 95 percent of EU imports of tin, tungsten, tantalum, and gold, commonly used in electronics, jewellery, packaging, cars, and construction.

Via EcoVadis

The obligation to comply with supply chain regulations from the EU Supply Chain Act to a draft of US supply chain due diligence laws is spurring firms to rethink sourcing, supply chain, manufacturing policies, and supporting applications. In addition, the US and the EU alone are currently spending $1.4 trillion on environmental sustainability and climate adaptation. There’s also $17.5 billion in VC funding for green tech, and the global market for green financial instruments is $658 billion. These regulatory and investment initiatives provide your firm with opportunities to reassess your supply chain to focus on enhancing sustainability of critical processes such as monitoring supplier labor practices and diversifying supplier geographical risk. 

Via EcoVadis

Final negotiations have begun between the European Council, Parliament and Commission on a regulation that will ban products from the EU market that result from deforestation.

It will impact what is placed on supermarket shelves, and, importantly, retailers might be held accountable.

The proposal focuses on coffee, cacao, cattle, palm oil, soy and wood products. Among these commodities, the palm oil sector is at the forefront of sustainability, reaching 93% uptake of certified sustainable palm oil in Europe, even before legislation.

The core of the proposal requires that only products that are both legally produced and demonstrably free from deforestation should be allowed on the EU market.

To guarantee this, companies must submit a due diligence statement which states that the product is not only deforestation-free but also shows the exact plot of land where it originated.

This can be achieved by making the first importer (operator) responsible for this due diligence statement.

All subsequent actors who handle the product commercially (traders), such as retailers, would then ensure that the information they receive from the operator is correct.

Via EcoVadis

The Sustainable Apparel Coalition (SAC), a nonprofit alliance promoting sustainable practices for the consumer goods industry, has entered into a partnership with the Initiative for Global Solidarity (IGS) to coordinate a project advancing environmental, social and labor assessment methodologies in the garment and footwear sector. The initiative is being launched in collaboration with the Apparel…

Via EcoVadis

The deteriorating political situation in the Democratic Republic of Congo (DRC) is likely to fuel stricter regulations on the supply chains of cobalt from the country. The precious mineral is used in the manufacturing of phones, electric cars and laptops. International regulators have recently called for further scrutiny into the supply chain of DRC-sourced cobalt, and this demand is likely to grow louder due to the worsening political situation in the country.

Via EcoVadis