Sustainability Policies and Regulations
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- Collect and save all your ESG data once, in one place.
- Use the same data to easily respond to questionnaires sent by partners, tenders, suppliers and banks.
- Save all the data required for EUDR and CBAM in a single environment.
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What is the EUDR regulation and which products does it cover?
The EUDR Regulation is the European legislation that prohibits the marketing in the EU of products linked to deforestation or forest degradation. It applies to 7 raw materials (wood, rubber, cattle, coffee, cocoa, oil palm, and soy) and their derivatives.
What are the risks for those who do not comply with the EUDR regulation?
Companies that do not comply in time expose themselves to operational risks and severe sanctions, which include fines of up to 4% of the annual turnover of the previous financial year, the confiscation or blocking of non-compliant products on the European market, and possible supply chain disruptions.
What is the CBAM regulation and which companies does it affect?
The CBAM (Carbon Border Adjustment Mechanism) is the European Union's mechanism that applies a carbon price to imports of certain emission-intensive goods from non-EU countries, aligning them with the costs borne by European companies under the ETS system.
The regulation directly affects EU importers of cement, iron and steel, aluminum, fertilizers, electricity, and hydrogen. Entities that import quantities below the threshold of 50 net tons per year (excluding hydrogen and electricity from the count) are exempt from all obligations.
What are the main obligations of the CBAM and what are the risks for those who do not comply?
Importing companies are required to meet requirements such as obtaining the mandatory status of an authorized CBAM declarant, tracking and calculating the emissions embedded in imported goods, and purchasing the corresponding financial certificates to cover those emissions.
Failure to comply with these rules entails severe operational and commercial risks.
- Customs block: without the status of an authorized declarant, it is no longer possible to import or release goods subject to the regulation into free circulation.
- Financial penalties: administrative sanctions are provided for in the event of failure to declare or incomplete declaration of emissions.
- Loss of competitiveness: customers increasingly demand reliable emissions data throughout the supply chain; companies that are not aligned risk exclusion from business relationships.
What is the PPWR Regulation and who does it apply to?
The PPWR (Packaging and Packaging Waste Regulation) is the European regulation that introduces a single, immediately binding framework for the entire lifecycle of packaging, with the goal of reducing waste at the source and creating a fully circular industrial system.
The regulation applies to all entities in the supply chain operating within the European Union single market: from packaging manufacturers and distributors to waste managers. It also includes importers from non-EU countries and all companies that use packaging to wrap, protect, or ship their products (particularly in sectors such as food, cosmetics, pharmaceuticals, and e-commerce).
What are the main obligations of the PPWR and what are the risks for those who do not comply?
The companies involved are required to meet requirements related to design for recyclability (Design4Recycling), incorporate minimum quotas of post-consumer recycled (PCR) plastic, limit empty space within packages (over-packaging), reduce the use of single-use items, and adopt a harmonized environmental labeling system.
Non-compliance entails severe operational and commercial risks.
- Marketing ban: a block on placing packaging on the European single market if it does not meet minimum recyclability and eco-design standards.
- Administrative sanctions: financial penalties applied at a national level and the inability to access public tenders or calls for proposals that incorporate ESG criteria.
- Loss of competitiveness: risk of supply chain disruption and loss of strategic clients who choose to work exclusively with partners already in compliance with the regulation.
What is the EUFLR regulation and which companies does it apply to?
The EUFLR (EU Forced Labor Regulation) is the European regulation that prohibits the placing, selling, and exporting on the EU market of products that have been made, in whole or in part, using forced or child labor.
The regulation applies to all commercial sectors and companies of any size, without any minimum threshold for applicability. The ban covers both goods produced within the European Union and those imported from non-EU countries, if forced labor is found to have been used at any point in the supply chain.
What are the obligations under the EUFLR and what are the risks for those who do not comply?
The regulation does not introduce new direct reporting obligations, but it requires companies to be prepared to provide concrete evidence of their due diligence in the event of investigations by authorities. To be prepared, companies must implement robust supply chain mapping, conduct risk assessments related to suppliers, and ensure the traceability of goods back to the source.
Failure to comply with these rules entails commercial risks and very severe penalties.
- Blocking, withdrawal, and destruction of goods: competent authorities have the power to order customs blocks, withdrawal from the market, or the destruction of non-compliant products, with no possibility of re-exporting them.
- Heavy economic sanctions: significant fines are provided for failure to monitor labor exploitation along the supply chain.
- Reputational and commercial damage: the concrete risk is the loss of competitiveness and exclusion from business relationships with clients who demand transparent value chains.
What is the EmpCo directive and who does it apply to?
The EmpCo Directive (Empowering Consumers for the Green Transition) is the European regulation created to combat greenwashing and regulate the use of so-called "Green Claims." This law prohibits the use of generic or misleading environmental messages to ensure that consumers receive transparent information based on verifiable data.
The directive applies to all companies (including non-EU ones) that promote or sell products and services to end consumers (B2C) in the European market, using any type of image or statement related to sustainability.
What are the main prohibitions of the EmpCo and what are the risks for those who do not comply?
The regulation introduces a "blacklist" of prohibited practices, including:
- the use of generic claims such as "green," "eco," or "sustainable" in the absence of recognized environmental excellence;
- the use of sustainability seals or labels that are self-produced and not certified by independent third parties;
- climate neutrality claims (such as "zero impact") supported solely and exclusively by offsetting emissions through carbon credits.
Companies that fail to comply risk heavy penalties, including fines of up to 4% of annual turnover (and up to 10 million euros in Italy through the intervention of the AGCM), the obligation to withdraw products from the market or modify non-compliant packaging, and severe reputational damage resulting from customs and commercial blocks on goods.
