Sustainability Regulations

Elevate your organization’s sustainability compliance through strategic procurement

As regulatory demands intensify, procurement becomes essential in driving sustainable practices that align with EU standards, ensuring both compliance and competitive advantage. Leverage expert insights to effectively manage sustainable procurement and regulatory adherence complexities.

At a time when sustainability is no longer just a buzzword but a global imperative, companies must increasingly navigate a complex landscape of sustainability policy regulations. These regulations, which aim to reduce environmental impact and promote social responsibility, are changing industries fundamentally.

At the heart of this compliance journey is procurement, which can make or break a company’s sustainability efforts like no other department. Understanding the interplay between procurement practices and regulatory compliance is critical for companies looking to achieve their sustainability goals while maintaining their competitive advantage.

This page will guide you to the following:

Procurement’s central role: procurement is vital in aligning company operations with sustainability regulations, impacting environmental and social outcomes
Regulatory impact: highlights specific EU regulations (CBAM, EUDR, CS3D) and their implications for procurement processes
Expert guidance: offers expertise to navigate the complexities of sustainable procurement and regulatory compliance

Tailored Recommendations for Navigating Sustainability Regulations

1. Develop and implement a cross-functional performance plan

To effectively align with evolving sustainability regulations, companies must create a comprehensive performance plan that integrates cost control; Environmental, Social and Governance (ESG) engagement, and enhanced organizational resilience. This plan should be cross-functional, ensuring collaboration across departments to meet the multifaceted demands of these new regulations.

2. Empower proactive procurement management initiatives

Procurement departments need to take an independent and proactive approach to adapt to the new sustainability measures. This involves updating procurement data, enhancing supply chain transparency, and developing a decision matrix guided by the ‘principle of double materiality.’ By taking the initiative, procurement teams can avoid potential disadvantages under the evolving regulatory framework.

3. Ensure compliance with CSDDD & CSRD

To streamline efforts and reduce the costs associated with compliance, companies must ensure that their sustainability measures are compatible with all directives relevant to them (e.g. CSDDD and CSRD). This combined compliance strategy will help minimize redundant efforts and align with regulations efficiently.

4. Proactive monitoring and collection of supplier data

To stay ahead of new sustainability requirements, companies must actively engage in collecting and monitoring data on their suppliers. This proactive approach will enable organizations to meet stringent regulatory criteria and adjust their strategies in real-time, ensuring continuous compliance and competitive advantage.

Find Out About the Different Regulations relevant for Procurement

EUDR Readiness: Practical Guidance for Building Resilient Supply Chains

The EU has once more delayed enforcement of the Deforestation Regulation, but the clock is still ticking. Businesses that wait risk last-minute disruption, while those that act now can strengthen supply chains, stay compliance-ready, and seize an edge over slower competitors. Our whitepaper gives you a step-by-step guide to using this extra time wisely – so you turn delay into advantage.

Omnibus Law: Less red tape, less transparency?

The EU’s proposed Omnibus Law aims to reduce regulatory burdens for businesses, particularly SMEs, by simplifying reporting requirements under CSRD and easing compliance with CBAM. While expected to save billions in costs, the changes may also weaken supply chain transparency. We explore what this means for sustainable procurement and how companies can stay on track.

EU supply chain law: How well prepared are companies?

The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD or CS3D) took effect on July 25, 2024. EU Member States have two years to incorporate the CSDDD into their national laws. Companies within the scope must comply according to a phased schedule from July 2027 to July 2029. Many European businesses are already preparing for these regulations. Our study highlights their progress and explores the complexities and challenges encountered.

Impact of the CBAM regulation on procurement

In a long-term move towards environmental sustainability, the European Union (EU) has unveiled the Carbon Border Adjustment Mechanism (CBAM). This regulation, a central pillar of the EU’s ambitious green deal, aims to combat climate change by significantly reducing greenhouse gas emissions. From 2026, CBAM will introduce new tariffs on imported products from outside the EU based on their contained carbon.

Manuel Berlanga Diaz

Managing Director

contact@inverto.com

Contact

Kiren Pandya

Principal

kiren.pandya@inverto.com