ESG Editorial #41: R2R Directive, Verimpact in the News, CBAM and the UNESCO Conference

Hello from my cluttered desk! Too much going on as February started, so I am just sharing some headline news and do reach out with feedback or any news worth sharing!

The Right-to-Repair (or R2R) Directive

The European Council and the European Parliament reached last week a provisional deal on the directive that promotes the repair of broken or defective goods, also known as the right-to-repair (or R2R) directive. This legislation will make it easier for consumers to seek repair instead of replacement by making the access to repair services easier, faster, transparent, and more attractive, in line with circular economy principles and in order to fight planned obsolescence.

Frequently, when household appliances like vacuum cleaners, dishwashers, or coffee machines malfunction or become defective, many find it more convenient to replace them rather than repair them, especially once the warranty period has lapsed. The R2R directive agreed upon by co-legislators aims to encourage consumers to extend the lifespan of their products by opting for repairs, thereby stimulating the repair industry, decreasing waste, and fostering more environmentally sustainable business practices.

To achieve this, the directive proposes a new set of tools to make repair more attractive to consumers, including:

• the possibility for consumers to request manufacturers to repair products that are technically repairable under EU law (for instance, washing machines, vacuum cleaners or mobile phones)
• a European repair information form which repairers can offer to consumers, with clear information like repair conditions, time to finish the works, prices, replacement products, etc.
• a European Online Platform for repair to facilitate the matchmaking between consumers and repairers
• an extension of 12 months of the liability period of the seller after the repair of a product

This directive forms part of the New Consumer Agenda and the Circular Economy Action Plan. It complements other recent legislative initiatives to promote sustainable consumption, such as the ecodesign Regulation (which will promote the production of repairable products) and the Directive on empowering consumers for the green transition (which will enable consumers to make better-informed purchasing decisions at the point of sale).

And let me introduce you to Sebastian Daus and his start-up FixFirst - The OS for Circular Services & Products that does exactly that! We first met as participants (me through BabylonGardens EU ) in ClimAccelerator some years ago and the work they have been doing is amazing! Check them out!

VERIMPACT in the Press

News Alert! Read the article by the Verimpact co-founder, Spyros Kouvelis, on #ESG Criteria, Regulations and Greek businesses in Greek in the Hellenic Investors Associationmagazine here! Thank you Giota Stathakou and team!

Verimpact at the UNESCO World Conference on Culture and Arts Education 2024

Our team at Verimpact will be participating at the UNESCO World Conference on Culture and Arts Education 2024 in Abu Dhabi as speakers in the panel on Culture and Arts Education for a Sustainable Future on 14 February 2024 from 1:30pm to 2:30pm, Abu Dhabi Time. If interested in joining us, please reach out to me!

CBAM

The world’s first carbon border tax was introduced by the European Commission at the start of October 2023. The Carbon Border Adjustment Mechanism (CBAM) is the world’s first carbon border tax, created by the EU, with the aim of reducing carbon emissions. Its primary focus is to address an issue called ‘carbon leakage’ or offshoring emissions. This happens when companies transfer the production of goods to countries with lower emissions standards, often leading to an overall increase in emissions.

The first stage of the policy, which will be phased in over three years, came into force on 1 October 2023. This initial trial phase is focused on high emitting sectors, including cement, fertilisers, iron and steel, aluminium, hydrogen, and electricity. After this, CBAM will be gradually ramped up to include more sectors, until it comes into full force from 1 January 2026. Only then will the carbon price be charged.

The tax will enable the EU to match the carbon price of imports with that of domestic goods. It is intended that this mechanism will create a level playing field, bolster industry decarbonisation, and apply a carbon price to goods entering the Union. To learn more about the standard, please contact our expert team!

See you next week!

#ESGReporting #Verimpact #VerifiableImpact #CSRD #ImpactInvesting