The latest updates on EU sustainability-centric legislation
In recent years, the European Union has been at the forefront of promoting sustainability through legislative measures. As the urgency for sustainable actions becomes increasingly apparent, companies face more responsibilities and challenges in aligning with these regulations. To help navigate this shifting landscape, let’s dive into some of the latest developments in EU sustainability-centric legislation.
Three Key Legislations for Sustainable Product Design and Lifecycle Extension.
The European Union is about to adopt three pieces of legislation that complement each other and jointly promote sustainable production design as well as extend product life. These legislations, key aspects of the EU Green Deal, include:
- The Ecodesign for Sustainable Products Regulation.
- The Repair of Goods Directive.
- The Empowering Consumers for the Green Transition Directive.
While the Ecodesign for Sustainable Products Regulation already existed since 2009, it has mainly focused on the energy efficiency of products. Now this regulation expands its reach to all products in the EU markets. A set of minimum ecodesign standards was introduced and will be outlined in separate regulations. For companies, these design standards can mean redesigning products focusing on durable, recyclable products, as well as increasing efforts to have labels with information about their environmental impact and adopting practices to reduce environmental impacts. The primary list of identified products for the first working plan includes textiles, furniture, mattresses, tires, detergents, paints, and lubricants. It is expected that 30 delegated acts will be established by 2030.
The Right to Repair Directive focuses on the responsibilities after a product has been sold. With this legislative piece, producers are obligated to offer product repair services even when the legal liability period has passed. This means producers of common household products like washing machines, vacuum cleaners, and smartphones need to make repairers, remanufacturers, refurbishers, and end users have access to all spare parts and all repair-related information and tools, including diagnosis tools, at a reasonable cost.
The Empowering Consumers Directive will enter into force on 26 March 2024 and impose a high level of information obligations on sellers to enable buyers to make sustainable purchasing decisions and reduce misleading through green claims.
The Key Legislation for Due Diligence.
The Corporate Sustainability Due Diligence Directive, known as CS3D, is the first EU mandatory due diligence legislative measure promoting sustainable corporate conduct across their global value chains.
Despite initial support, Germany’s sudden withdrawal led to delays in the Council vote. The Belgian Presidency of the Council proposed to comprise the text of the Directive to reach majority votes in favor of Member States. Even with several delays, on 15 March 2024, the EU Council finally voted in favor of the new EU Directive, paving the way for more robust human rights due diligence by companies.
Although the scope of CS3D has decreased, impacting companies with at least 1,000 employees and annual sales of €450 million, its implications extend beyond direct applicability. Companies may still be expected to develop due diligence systems for their supply chain partners under CS3D.
As the EU continues to prioritize sustainability, companies must stay informed about evolving legislation and proactively adapt their practices. By embracing these changes and integrating sustainability into their core operations, businesses can thrive in an increasingly conscientious market landscape.
We at Leadership & Sustainability are excited about the EU’s sustainability journey, which is unfolding, and we will help to keep you updated on future developments.
Best regards,
Karin and the L&S team
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