Why it’s businesses (and not the European Commission) that need to ensure sustainable supply chains
By Katharina Weber
It’s the same old story – when push comes to shove, no one wants to pay, especially for sustainability. We want more sustainable practices, production and supply chains but there are few who are willing to actually open their wallets for such a cause.
In the last few weeks several actors have urged the European Commission to delay implementing the EU’s Regulation on Deforestation-free Products (EUDR), including the US. and various industry associations.
Preparations are in full swing for the regulation to come into effect at the end of this year. And as the public sector and industry each experience their own difficulties to ensure they’re ready, there are still unresolved questions over who should pay for the regulation’s additional requirements.
Supply chain regulations aim to prevent companies from using environmental or social malpractices as a competitive advantage. The EUDR specifically targets deforestation driven by agriculture, aimed at minimising the EU’s contribution to deforestation and forest degradation worldwide.
Public debate on the EUDR is marked by controversy. Indonesia and Malaysia have been very vocal in condemning it as a neo-colonial protectionist instrument. Many NGOs, on the other hand, have welcomed the regulation as a way to take responsibility for deforestation from the demand side. Still, this support doesn’t come without concerns and dissatisfaction over the EU’s unilateral approach, smallholder livelihoods, human rights and overall design loopholes.
While these are important elements to consider, one group is conspicuously missing in the whole debate – multinational corporations. And this needs to be rectified if regulations such as the EUDR are to successfully achieve their aims and purpose.
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