In our policy section, we focus this time on an in-depth analysis of the EU Deforestation Regulation (EUDR). We also give you updates on the EU Green Claims Directive, the Corporate Sustainability Due Diligence Directive (CSDDD) and the Packaging and Packaging Waste Regulation (PPWR).
Update: EU Green Claims Directive
Now it happened faster than expected: The EU Commission presented its draft on 22 March 2023 and the EU Parliament backed the proposal by a majority on 16 May 2023. This means that the Directive is on schedule and can be adopted by March 2024 (and thus before the next European elections).
Once adopted, the Directive must then be transposed into national law by the EU Member States. Under the Commission’s proposal, all Member States will designate competent authorities and provide them with all necessary investigative and enforcement powers to ensure compliance with the Directive and to establish a regulatory and sanctioning regime.
Our advice: Check your company’s communication and the statements on websites, packaging and information materials for compliance with the rules. Statements such as carbon neutral, climate neutral, environmentally compatible, etc. must be substantiated in future using a “standard methodology”. Compensations require closer examination. However, it looks like they are not admissible as a basis for a green claim. (Proposal for a Directive on Green Claims)
EU Corporate Sustainability Due Diligence Directive (CSDD)
After years of discussion, the EU Commission’s draft for an EU Human Rights Due Diligence Directive has been on the table since 23 February 2023. The EU Parliament finally adopted its position in a vote on 01.06.2023 and tightened up the Commission’s proposal in crucial points. For example, this law will be applied to all companies with 250 employees or more and have a turnover of €40 million. A climate transition plan is to be presented to the parts of the financial sector that are included, which we know from the CSRD. Now, we will see how the trialogue goes and what comes out of the negotiations in the end.
A good analysis of the points of contention and the EU Parliament’s draft can be found here.
The actual transposition of the Directive into national law should not be expected before 2028.
Our assessment: Since the Corporate Sustainability Reporting Directive (CSRD), which was adopted on 5 January 2023, has set a limit of 250 employees, we see the distinct possibility that the CSDD will also take effect from 250 employees. (More about it)
Packaging & Packaging Waste Regulation (PPWR)
In these weeks, there are busy negotiations between the member states and the Parliament. Amendments to the Commission’s draft are being tabled now.
We have prepared an article for you here on this news, which discusses what it means for the packaging industry and our recommendations.
EU Deforestation Regulation (EUDR)
On May 16th, the Council of the European Union adopted the EU Deforestation Regulation (EUDR), which will enter into force throughout Europe 20 days after its publication. This will be followed by a transitional period of 18 months. In all likelihood, the requirements will come into force in December 2024.
We have prepared an article for you here on this news, which discusses what it means for the packaging industry and our recommendations.
