Reels | What are the key supply chain regulations we should be aware of? - Trade Treasury Payments

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Zulema Townsend, Associate in the Environment and Climate Law Group at A&O Shearman, highlights the shift from voluntary sustainability reporting to mandatory, detailed disclosures, and the growing due diligence obligations companies face.

• Corporate reporting: The EU’s Corporate Sustainability Reporting Directive (CSRD) and the International Sustainability Standards Board (ISSB) standards are setting new expectations for detailed sustainability disclosures, including supply chain impacts.
• Supply chain due diligence: The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) introduces obligations to identify, address, and mitigate human rights and environmental impacts across supply chains.
• Product stewardship: EU regulations on forced labour, conflict minerals, and deforestation raise potential liability for unsustainably sourced products and components entering the EU market.

As Zulema notes, this direction of travel demands that companies not only understand their regulatory exposure but also take proactive steps to embed sustainability and accountability deep into their supply chains.

🎙️ Recorded in partnership with ITFA Education Day, held in London