Video: 5 questions about upcoming sustainability legislation 

A new video series answers questions about the regulations that will make corporate sustainability the new normal. Episode 2: Monitoring, reporting and verification for SMEs explained by Amy Ching from Satelligence.

Most European companies directly or indirectly buy products abroad. Food, fashion, electronics: most of what we buy is – at least in part – manufactured in low and middle income countries. This means that the economies of European countries are deeply intertwined with others’. A relationship brings mutual benefits, but also responsibilities.

New legislation is formulating the rules for this relationship. Fairfood and Futureproof Coffee Collective joined forces to map the most frequent doubts among companies – especially SMEs – when it comes to the EU’s Corporate Sustainability Due Diligence Directive and other laws requiring companies to identify and act on adverse impacts on human rights in their supply chains. 

To answer their questions, we invited experts in a series of video interviews. With each interview, we will answer 5 practical aspects based on the current law drafts. 

Episode 2: Identifying and Monitoring to prevent risks – the roles to be played by SMEs in a system change, with Amy Ching from Satelligence

Working together with agri-food companies to identify and eliminate deforestation from their businesses, Amy Ching, Customer Success Lead at Satelligence is the second interviewee of our video series. The supply chain specialist explains that the different directives coming into force are part of the EU’s effort to stimulate a sustainable economy. Among the various rules being discussed so that companies can identify and mitigate the negative impacts of their activities, she points out the common points where to start acting.

“Within these different regulations you see 4 common components coming back every time,” the expert explains. “Firstly, it’s the implementation of a strong due diligence system, second you have traceability obligations, third is a strong transparency component, and finally there is an enforcement part.”

In this video, we examine a question that is on the minds of some of our partners: with the new law, will we see leaders and SMEs falling behind in terms of greenwashing large corporations? Ching explains that, as the laws target companies, there are different rules for Small and Medium Enterprises to take action. “What SMEs should be doing is really looking into their supply chain, who are they selling to or buying from? And can they work together with their supply chain stakeholders to co-invest in systems, because they will benefit both parties at the end of the day.” In the video, Ching gives concrete examples for organisations looking for funds, government support and proper expertise to start acting. 

Press play to understand how SMEs can address the 4 components and be part of a system change. 

Watch also: How to prepare for EU regulation on deforestation-free supply chains? Re-watch MVO latest webinar.