Sustainable products and supply chains

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Supply chain sustainability involves the management of environmental and social impacts throughout the entire lifecycle of goods and services. Due diligence plays a key part in helping organisations to identify, evaluate, and subsequently manage ESG risks in their supply chain.

Any business, irrespective of where they are based, which trades with consumers in the EU or places goods on the EU market will need to ensure that their products and practices are compliant with EU rules on supply chain sustainability and product sustainability as a condition of market access. These requirements may be generalist and determined by the size and nature of the entity concerned (such as those imposed by the EU Corporate Sustainability Due Diligence Directive (CS3D)) or may be product-specific.

Sustainable supply chains

This subtopic contains the following guidance on EU rules governing sustainability in supply chains:

  1. •

    Practice Note EU Corporate Sustainability Due Diligence Directive provides a snapshot of the EU Corporate Sustainability Due Diligence Directive (Directive (EU) 2024/1760, CS3D), as published in the Official Journal on 5 July 2024. The CS3D introduces legal obligations for large companies with significant

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Latest EU Law News

ESAs publish updated consolidated Q&A on SFDR implementation and compliance

The Joint Committee of the European Supervisory Authorities (ESAs), comprising of the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA), has published an updated consolidated questions and answers document on the Sustainable Finance Disclosure Regulation (SFDR) (Regulation (EU) 2019/2088) and its Delegated Regulation (Commission Delegated Regulation (EU) 2022/1288). This updated document combines the European Commission’s interpretations of EU law with guidance from the ESAs on its practical implementation. It provides clarifications on key areas including the scope of application, definitions of sustainable investments, principal adverse impact disclosures, financial product and taxonomy-aligned investment disclosures, multi-option products, and the obligations of financial advisers and execution-only firms.

EBA updates mapping and signposting tools to reflect latest Pillar 3 and reporting changes

The European Banking Authority (EBA) has published updates to its Pillar 3 mapping tool and supervisory reporting signposting tool to align with recent framework changes, and has enhanced its ‘reporting time traveller’ platform to reflect the most recent technical standards and templates.

ECON publishes draft reports on digital euro and provision of services in non-euro states

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has published draft reports on the European Commission’s proposals to establish a digital euro and to provide for digital euro services by payment services providers in Member States whose currency is not the euro. The reports contain suggested amendments to the Commission’s proposals. Amendments to the Commission’s by Parliament are set out in two columns. Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column. The rapporteur’s explanatory statements at the end of the reports emphasise ensuring access to central bank money in the digital era, strengthening strategic autonomy in payments and prioritising an ‘offline’ digital euro, while making any ‘online’ version conditional on market outcomes.

EFPIA leads healthcare associations in challenging ECHA's PFAS restriction assessment approach

The European Federation of Pharmaceutical Industries and Associations (EFPIA) and eight other healthcare associations have raised concerns that the European Chemicals Agency (ECHA) will not conduct individual sector assessments for medicines as part of its proposed universal restriction on PFAS chemicals. While the healthcare sector remains within the restriction's scope, ECHA indicated that 'other medical applications' covering medicinal products and manufacturing will not be individually assessed during preparation of final opinions by the Risk Assessment Committee and Socio-Economic Analysis Committee. The associations argue this approach prevents the European Commission from understanding public and animal health impacts and urge ECHA to ensure dedicated assessment of the healthcare sector within the PFAS restriction process.

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