Compliance with Sustainability Laws
Enhance your organization's adherence to sustainability regulations through strategic sourcing
With increasing regulatory pressures, procurement plays a pivotal role in implementing practices that meet EU standards, ensuring both legal compliance and a competitive edge. Utilize expert knowledge to navigate the complexities of sustainable procurement and regulatory requirements effectively.
In an era where sustainability has transitioned from a trend to a global necessity, companies must increasingly manage the intricate landscape of sustainability policy regulations. These regulations, designed to minimize environmental impact and foster social responsibility, are fundamentally reshaping industries.
Central to this compliance journey is procurement, which can either propel or hinder a company’s sustainability initiatives more than any other department. Grasping the connection between procurement practices and regulatory adherence is crucial for organizations aiming to achieve their sustainability targets while preserving their competitive edge.
This guide will assist you with the following:
- Procurement's pivotal role: procurement is essential in aligning corporate operations with sustainability regulations, influencing both environmental and social outcomes.
- Regulatory influence: highlights specific EU regulations (CBAM, EUDR, CS3D) and their effects on procurement processes.
- Expert support: provides insights to navigate the complexities of sustainable procurement and regulatory compliance.
Customized Strategies for Meeting Sustainability Regulations
To effectively align with emerging sustainability regulations, businesses should create a holistic performance framework that integrates cost management, Environmental, Social, and Governance (ESG) engagement, and enhanced organizational resilience. This framework should encourage collaboration across departments to meet the multifaceted demands of these evolving regulations.
Procurement teams need to adopt an independent and forward-thinking approach to adapt to new sustainability measures. This includes updating procurement data, enhancing supply chain transparency, and creating a decision matrix guided by the 'principle of double materiality.' Taking initiative will help procurement teams avoid potential disadvantages under the evolving regulatory environment.
To optimize efforts and reduce compliance costs, companies must ensure their sustainability strategies are compatible with relevant directives (e.g., CSDDD and CSRD). This integrated compliance approach will help streamline processes and efficiently align with regulations.
To stay ahead of sustainability mandates, companies must engage in actively tracking and monitoring supplier data. This proactive strategy will enable organizations to meet stringent regulatory standards and adapt their strategies dynamically, ensuring ongoing compliance and maintaining a competitive position.
Find Out About the Different Regulations relevant for Procurement
EU supply chain law: How well prepared are companies?
The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) took effect on July 25, 2024. EU Member States have two years to incorporate the CSDDD into their national laws. Companies within the scope must comply according to a phased schedule from July 2027 to July 2029. Many European businesses are already preparing for these regulations. Our study highlights their progress and explores the complexities and challenges encountered.
Impact of the CBAM regulation on procurement
In a long-term move towards environmental sustainability, the European Union (EU) has unveiled the Carbon Border Adjustment Mechanism (CBAM). This regulation, a central pillar of the EU’s ambitious green deal, aims to combat climate change by significantly reducing greenhouse gas emissions. From 2026, CBAM will introduce new tariffs on imported products from outside the EU based on their contained carbon.
Impact of the EUDR on procurement and supply chain
In a long-term move towards environmental sustainability, the European Union (EU) approved a regulation in May 2023 to combat deforestation. This regulation, a key component of the EU’s ambitious Green Deal, will take effect on December 30, 2024. It covers eight commodities — oil palm, soy, wood, cocoa, coffee, cattle, and rubber — and, in some cases, related finished products, which are significant contributors to deforestation.
