RSM Voice of Strategy & Sustainability | JULY 2024
Dear reader,
With the UEFA EURO 2024 concluded and the Olympics in Paris just around the corner, we are heading towards a sporty summer. A perfect moment for some insightful reads on the latest in strategy and sustainability. This edition includes:
Thank you for your support, and we hope to see you back in two weeks for the next edition of the Voice of International Trade & Tax.
Warm regards,
Mario van den Broek - RSM Netherlands Tax & Business Consulting Services
The Ripple Effect: What the EU Nature Restoration Law Means for European Businesses
On July 17th, the European Council formally adopted the first-of-its-kind regulation on nature restoration. The law aims to restore degraded ecosystems across the European Union, addressing the urgent need for biodiversity recovery and climate resilience. Its ambitious targets include the restoration of at least 20% of EU land and sea areas by 2030, and of all ecosystems in need of restoration by 2050, with even higher targets set for ecosystems currently in “poor condition”. Member states must now develop and implement detailed national restoration plans to reach these targets. While the law only directly imposes obligations on member states, businesses will be affected indirectly by the measures these states implement in response.
Political Winds and ESG: How EU Shifts Could Reshape Green Regulations
The recent EU parliamentary elections have raised questions about potential political backlash against the Green Deal. This article explores the impacts of these political changes within the European Union on ESG regulations under the Green Deal. It analyses the complexities of amending existing regulations, the role of the European Commission's 'right of initiative', and the influence of national elections on the Council. This comprehensive view illustrates how the new political landscape might shape future ESG policies.
The Digital Product Passport: Revolutionizing Supply Chain Transparency
Imagine being able to, for any product sold in the EU, instantly access information about its origins, components, recycled content, carbon footprint, and repair options by simply scanning a QR code on it. This vision is becoming a reality sooner than you might expect, as Volvo recently introduced the world's first EV battery passport for its new flagship car, using blockchain technology to gather the necessary supply chain data. By February 2027, such battery passports will be mandatory for all EVs sold in the EU. And it will not just be about batteries that such information needs to be publicly available; the EU plans to introduce a Digital Product Passport (DPP) for nearly all products on the EU market. The EU plans to do so by means of their new Ecodesign for Sustainable Products Regulation (ESPR), which will go into force July 18, 2024.?
The role of investors in the future ESG landscape of 2030
As we approach 2030, the landscape of ESG practices is set to continue its rapid pace. Companies and investors in the European Union, and soon globally, will be mandated to adopt sustainable practices and report comprehensively on their ESG activities. Two of the most well-known reporting obligations driving this shift are the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR). ?To truly embrace sustainability, companies and investors must adopt a forward-thinking approach that goes beyond regulatory obligations. This article explores the role of investors in the future. By exploring the intersection of compliance, proactive ESG strategies, and long-term value creation, we aim to provide insights into what the role of businesses and investors will be by 2030 and beyond.
If you have any questions regarding these articles, or have an inquiry for our team of Tax and Consulting experts, please contact:
Mario van den Broek ([email protected] - +31 6 15 83 55 00)