New European Union ESG regulations impact the supply chain profession

illuminem summarizes for you the essential news of the day. Read the full piece on Forbes or enjoy below:

🗞️ Driving the news: The European Union (EU) is imposing new sustainability and human rights regulations impacting supply chains
• These regulations include the prohibition of vague green claims by companies and a directive requiring businesses to mitigate environmental and human rights violations within their entire supply chain

🔭 The context: In January, the EU Parliament adopted laws against "greenwashing" and approved the Corporate Sustainability Due Diligence Directive (CSDDD) in March
• These regulations aim to enforce more accurate environmental advertising and extend corporate accountability for human rights and environmental impacts

🌍 Why it matters for the planet: The legislation is crucial for improving corporate transparency and accountability, encouraging more sustainable and ethical business practices, and reducing misleading environmental claims, which can misguide consumers and hinder environmental progress

⏭️ What's next: The new regulations await final approval from the EU Council
• Once enacted, member states will have two years to integrate these laws into national legislation, marking a significant shift towards stricter sustainability governance in the EU

💬 One quote: "More burdensome sustainability regulations will inevitably affect a company’s supply chain team," notes the article, highlighting the operational challenges companies face due to these new regulations

📈 One stat: A recent EU study found that over half of green claims by companies in the EU were vague or misleading

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