The CS3D Digest #40
Ripple Research
Ripple Research works at the intersection of data science, behavior change, and social impact.
Welcome to the 40th edition of The CS3D Digest, a dedicated newsletter by Ripple Research and your weekly compass for navigating conversations that matter in the corporate sustainability landscape. Our goal is simple—to keep you informed about the latest developments in the Corporate Sustainability Due Diligence Directive (#CSDDD) space as we further our understanding of it.
Read our previous editions to catch up, and subscribe for future updates!
Today's focus: Cocoa traders urge EU to delay deforestation law, UK regulator sends letter to major fashion brands over greenwashing claims, environmental NGOs lead climate lawsuit against Germany, Australia's shares surveillance plans for the implementation of climate disclosure requirements, infosys report shows human rights violations across global battery supply chain.
What are we reading?
We've employed our proprietary AI tools to curate the most engaging news about CS3D and related regulations. Our focus extends beyond what's trending at the moment to showcase headlines that are fueling meaningful conversations around the world.
The European Cocoa Association (ECA), a trade association?representing major chocolate companies like Barry Callebaut and Cargill,?has urged the European Union (EU) to delay the implementation of its new deforestation regulation (EUDR). Specific concerns raised by the ECA include the lack of clarity in key elements of the regulation, operational difficulties with the information system required for compliance, and uncertainty about how member states will interpret the legislation. The ECA also highlighted the potential negative impacts of the EUDR on the cocoa industry, including increased costs and reduced availability of cocoa beans. Several countries,?including Brazil,?Indonesia,?and Malaysia,?have raised objections to the regulation,?arguing that it will have negative impacts on their economies.?The European People's Party,?the largest political group in the European Parliament,?has also criticized the EUDR,?expressing concerns about its potential impact on the supply of animal feed and consumer goods. The EUDR is scheduled to come into effect on December 30th.
The UK's Competition and Markets Authority (CMA) has released a new compliance guide to help fashion brands adhere to the Green Claims Code when making environmental claims about their products and services. This initiative aims to improve transparency and accuracy in the fashion industry’s sustainability marketing practices. In tandem with the guide, the CMA has issued letters to 17 prominent fashion brands, urging them to address concerns about using broad terms such as "sustainable" or "eco" without clear definitions. These actions follow the CMA's 2022 investigation into greenwashing practices within the fashion sector resulting in a formal agreement with major retailers ASOS, Boohoo, and George at Asda to ensure their sustainability claims are not misleading to consumers.
Greenpeace and Germanwatch have filed a constitutional complaint against the German government's climate policy, arguing that it is insufficient to address the urgent threat of climate change. The NGOs, joined by over 54,000 co-plaintiffs, are demanding a climate action law that is compliant with the constitution and requires more ambitious emissions reductions, particularly in the transport sector. Earlier this year, the government amended the Climate Action Law, relaxing requirements for sectoral emissions reductions and allowing for shortfalls in one sector to be compensated by overachieving in another.?This change has been criticized by environmental groups as it reduces pressure on specific sectors like transport to implement climate action.?The complainants argue that the government's amended climate policy violates citizens' fundamental rights, citing a landmark ruling by the German constitutional court in 2021.?
Australian Securities and Investments Commission (ASIC) will begin enforcing new climate disclosure requirements starting in 2025, ensuring companies provide accurate and consistent information about their climate-related risks and opportunities. In a recent announcement, the financial watchdog shared surveillance plans to ensure a 'pragmatic' approach to implementation and introduced a dedicated team to supervise compliance, develop regulatory assessments and process applications for relief. The Australian Accounting Standards Board is set to approve two standards aligned with the International Sustainability Standards Board in the coming weeks.?To support the transition, "modified liability settings" will be in place until December 2028, protecting legal actions against statements made in sustainability reports or by auditors. Mandatory audit reports will be required starting 1 July 2030.
领英推荐
A recent study by Infyos has revealed that companies accounting for 75% of the global battery market are linked to supply chain entities facing serious human rights abuse allegations. This troubling connection spans major players in the automotive, energy storage, and electronics sectors. The complexity of the battery supply chain complicates risk identification, with manufacturers engaging over 10,000 suppliers, many involved in upstream mining and refining processes. Human rights abuses often occur at these early stages, making it difficult for companies to ensure ethical sourcing. As regulatory scrutiny intensifies, especially in Europe and the U.S., businesses face significant risks if they do not address these issues. The upcoming regulations, such as the EU Battery Regulation, will establish stringent standards for due diligence and supply chain visibility.
Our Impact
Members of Ripple Research collaborated with Mercy Corps on a project focused on mapping green business practices among Micro, Small, and Medium Enterprises (MSMEs) in Timor-Leste. Given the country's climate vulnerabilities and the significant role MSMEs play in its economy, this project aimed to identify and understand existing sustainable practices within key sectors, including farming, agro-processing, cafes and restaurants, waste management, eco-tourism, and handicrafts.
The findings from this project highlight that while MSMEs in Timor-Leste are beginning to adopt green practices, there is a pressing need for continued efforts to address the significant gaps in awareness, resources, and collaboration. Without targeted support and increased investment in these areas, the potential of these businesses to drive sustainable change will remain underutilised. This work sets the stage for further initiatives that are essential to building a resilient and environmentally conscious economy in Timor-Leste.
Voices from this week
??Catie Shavin, Business and Human Rights Advisor, highlights the increasing urgency for businesses to assess the effectiveness of their human rights due diligence (HRDD) in light of emerging regulations like the CSDDD.
??Isabella Kaminski, environment and climate change journalist, reports on the three constitutional complaints against the German government's climate policy by various environmental groups and individual plaintiffs.
??The Danish Institute for Human Rights shares a transposition guide for CSDDD outlining the key areas where national human rights institutions and other actors can engage with policymakers.
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About us:
Ripple Research works with policymakers, researchers, businesses, and philanthropies to build resilient societies. We apply large-scale behavioural and cultural insights uncovered through big data analysis and machine learning to design solutions for impact-driven organizations. Our contributions have earned recognition from international global media outlets, including The New York Times, POLITICO, Vox, Fast Company, and Forbes.
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