Why did Simon Mundy, editor at the Financial Times, label "Supply chain disclosures" one of the key themes for 2024?
It's all about regulation.
2023 was a BIG year for supply chain sustainability regulation, and there are key deadlines approaching in coming years:
1️⃣ 🇪🇺 Large European companies will need to report on #scope3 emissions from 2025.
2️⃣ 🇺🇸 California introduced first US act in 2023 to require companies to report on #scope3 emissions by 2026.
3️⃣ 🇪🇺 A provisional deal was reached for #CSDDD (Corporate Sustainability Due Dilligence Directive) on Dec 14 2023, which requires EU companies to conduct sustainability due dilligence on their supply chain, likely by 2025 or 2026.
4️⃣ 🇩🇪 Second wave of the #GSCA (German Supply Chain Act) lowers the bar for German companies to conduct ESG DD in their supply chain to 1,000 employees, 1st Jan 2024.
5️⃣ 🇪🇺 #CSRD (Corporate Sustainability Reporting Directive) came into effect on January 2023, requiring new sustainability reporting which includes the supply chain to be covered already for financial year 2024 (for reports published in 2025).
6️⃣ 🇪🇺 On June 29, 2023 the EU #Deforestation act came into effect which has a major supply chain component and needs to be implemented by 2025.
And this is not even to mention the existing regulation already in place - e.g. UK modern slavery act, Norwegian transparency act, and so on.
It's all coming very very fast, and many sustainability professionals heads are spinning for a good reason!
Suppliers heads will be spinning very soon as well.
Fortunately, there are quite a few synergies between these once you untangle the jungle of heavy legislation wording 🌴
- e.g. if you track modern slavery for the UK act, you can reuse similar information for the CSRD forced labor component, and so on.
What do you think will happen in 2024 on the supply chain sustainability side?
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