Supply chain due diligence becomes more intertwined with product compliance. The latest example is the EU proposal of the Corporate Sustainability Reporting Directive (CSRD). It will significantly impact companies involved in manufacturing, retail, and trade. The Global Corruption Index (GCI) is just one puzzle piece.
The 2021 update on the
Global Corruption Index (GCI) is published. Corruption is essential in your due diligence if you are dealing with product compliance.
For example, the EU Timber Regulation states that countries with a Corruption Perception Index (CPI) of less than 50 require extra attention.
Corruption and many other - even more significant - issues also play an essential role in the EU Conflict Mineral Regulation (CMR). By controlling trade in minerals from conflict areas, this Regulation is one of the ways of eliminating the financing of armed groups. The Union's foreign and development policy action also contributes to fighting local corruption, strengthening borders, and providing training for local populations and their representatives to help them highlight abuses.
This Conflict Mineral Regulation has a direct link to non-financial reporting requirements. That brings us to the following. On April 21, 2021, the European Commission adopted a Corporate Sustainability Reporting Directive (CSRD) proposal that will significantly impact your organisation. It will not surprise you that anti-corruption is a topic in many chapters in this new CSRD.
You might think that this
CSRD starts with large companies first, but your customer will draw you into their due diligence process. There is no escape. That is why we plan a
Compliance Tuesday event on CSRD, its impact, and the role ProductIP can play in supporting companies dealing with its implications. Sign-up below for our mailing list on this topic to stay informed.
Supporting material on ProductIPedia
- article about the EU Timber Regulation