EU aims to introduce mandatory environmental and social due diligence obligations in supply chains

Background to the draft European Supply Chain Act

The draft European Supply Chain Act requires EU companies to manage social and environmental impacts along their entire value chain. This includes their own activities, direct and indirect suppliers, as well as goods and services.

The draft was adopted by the European Council in December 2022 and the European Parliament is expected to agree on a position in May 2023. EU member states will then have two years to incorporate the Directive into their own national laws. Countries with their own laws will have to revise and tighten up legislation in line with the European Supply Chain Act.

German Act on Corporate Due Diligence

The new German Act on Corporate Due Diligence to Prevent Human Rights Violations in Supply Chains (Lieferkettensorgfaltspflichtengesetz, short: LkSG) which came into force in January 2023 will affect all German companies regardless of their legal form, head office, the principal place of business or statutory registered office.

Comparison of European Supply Chain Act vs. German Supply Chain Act

Responsible Gold™ Helps Solve the Supply Chain Trust Burden

Responsible Gold™ is conflict-free and responsibly sourced gold with blockchain based proof of provenance and chain of custody transparency. The Responsible Gold ™ Ecosystem is designed to deliver greater transparency, traceability, and accountability to the gold supply chain. Qenta’s Responsible Gold ™ Ecosystem can support refiners comply with the European Supply Chain Act

The Responsible Gold™ ecosystem comprises the Responsible Gold™ Supply Chain Application (RG SCA) and the Responsible Gold™ Standards (Standards):

• The RG SCA, our fully automated gold tracking solution, provides unprecedented visibility and transparency of gold’s custody from mine-to-refiner-to-vault or end user, helping to reduce delays and disputes while allowing supply chain participants to quickly detect if the supply chain has been compromised.
• The Standards enable supply chain participants adopt best in class ESG controls to protect against conflict financing, money laundering, environmental, social and labor issues.

Responsible Gold: Conflict-free responsibly sourced

References:

EU Supply Chain Law Obliges Companies to Operate in a Fair and Sustainable Manner

The European Supply Chain Act – the important topics

The EU aims to introduce mandatory supply chain due diligence obligations | Perspectives | Reed Smith LLP