Webinar recording: Navigating the compliance maze with Taylor Wessing: overview of CBAM, EUDR and CSDDD
published on
23.10.2024
As sustainability and compliance regulations become more stringent, companies are facing increasingly complex challenges. In a recent webinar organized by Takto in collaboration with Taylor Wessing, the focus was on three major European directives: the Carbon Border Adjustment Mechanism (CEBAM), the European Deforestation Regulation (EUDR) and the Corporate Sustainability Due Diligence Directive (CSDDD). This article provides a summary of the most important findings and solutions to help companies find their way through the "compliance maze".
The Carbon Border Adjustment Mechanism (CEBAM) aims to price the CO2 emissions of imported goods into the EU in order to create a level playing field in which domestic producers are not disadvantaged by the European Emissions Trading System (ETS). Companies must submit detailed reports on CO2 emissions from their imported goods by 2026 before actual payments are due from then on.
Important key data:
Companies need to start requesting real CO2 data from their suppliers now, as the use of default values will be severely restricted from mid-2024. Companies should also adapt their supply contracts in order to be able to obtain the necessary data efficiently.
The European Deforestation Regulation (EUDR) is aimed at combating deforestation caused by the cultivation of raw materials such as wood, soya, cattle, palm oil, rubber, coffee and cocoa. From the end of 2024, companies will only be allowed to place "deforestation-free" products on the EU market. This means that raw materials produced after the cut-off date of December 31, 2020 on areas that have been deforested may no longer be traded.
Important requirements:
Compliance with these regulations requires companies to collect and document accurate information about the origin and production conditions of their raw materials. Early supplier verification and traceability measures are crucial.
The Corporate Sustainability Due Diligence Directive (CSDDD) is the European response to the German Supply Chain Due Diligence Act (LKSG). It extends the obligations of companies and includes both environmental and human rights aspects along the entire supply chain. Companies with more than 1000 employees and a turnover of 450 million euros are initially affected, with the regulations being gradually extended.
Differences to the LKSG:
It is advisable for companies to establish structures now that ensure comprehensive risk analysis and due diligence along the entire supply chain.
A key message of the webinar was the importance of digital platforms such as Takto to manage the diverse compliance requirements. Takto offers an integrated solution for managing supplier data, complying with regulations such as CEBAM, EUDR and CSDDD and handling compliance-related requests.
Advantages of the software:
By using such a platform, companies can not only meet their compliance requirements, but also save time and resources in the long term.
The increasingly stringent regulations such as CEBAM, EUDR and CSDDD pose considerable challenges for companies. Early preparation and the digitalization of supply chain and compliance processes are crucial. With the right software and a clear strategy, companies can not only minimize legal risks, but also make their supply chains more transparent and sustainable.
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