Another great reason to understand your supply chain!
From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz Are you 100% sure you know what’s in your supply chain? Do you fully understand the work practices involved? Yes and yes? Then you’re in good shape to keep selling to the European Union when the new European Supply Chain Act takes effect. No and no? Then you’ve work to do! New EU legislation will require many suppliers to EU companies to better manage their social and environmental impacts. Here’s the acronym: Corporate Sustainability Due Diligence Directive (CSDDD or CS3D). Even if you don’t trade with the EU, expect to see more focus on supply chains, right around the world. Why? Because supply chains are notorious sources of social and environmental ‘hotspots’. Wages below subsistence. Forced labour. Treacherous working conditions. Toxic chemicals. Polluted waterways. Deforestation. The list goes on. The draft European Supply Chain Act Read on for general information about the changes. What’s happening? The European Parliament has voted for the draft bill. Parties are now negotiating a common position to pass the bill into law. What’s the aim of the new law? It’s one we can all sign up to: a fairer, safer, more sustainable global economy. Who does the law cover? It covers many larger companies based in the EU. Some companies outside the EU are covered if their EU turnover is large. Small and medium-sized businesses are not directly affected. However, the law will affect them if they supply to larger companies. What does the law require? Affected companies must manage social and environmental impacts across their value chains. (This is currently voluntary.) These value chains include the companies’ direct suppliers (maybe your business?) and indirect suppliers too (your business’ suppliers?) The law is stricter than most existing national legislation. What does the law mean in practical […]