EU policymakers identified two big levers to achieve Europe’s Green Deal ambitions; firstly, to ensure that large organisations take due care of their environmental and social impact. Secondly, to facilitate fairer and more transparent financing of less damaging businesses and initiatives. Therefore, Large Retailers, Brands and Suppliers who must comply with the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) are working hard to adapt to new corporate sustainability rules. All organisations can voluntarily comply with legislation to attract favourable reputational effects and demonstrate ESG alignment to investors and clients. These regulations will significantly impact how businesses operate, even those not directly in scope.
“As a small brand, it is hard to keep up with requests from retailers. They demand more data from brands (often in different formats), despite responding to all requests, it is impossible to build a data strategy”
How will these new rules impact small brands and suppliers?
Transparency Demands – Big brands must publicly disclose sustainability and due diligence efforts, which means they will expect suppliers and smaller brands to know their supply chains.
Accountability – Companies will be responsible for due diligence on direct suppliers, meaning smaller suppliers and manufacturers must prove ethical and sustainable efforts.
Data Management – Strategic planning to connect the diverse data from suppliers in your upstream value chain to clients in your downstream value chain.
During 2025, the scope and requirements of these large corporate sustainability legislations are being reviewed in a simplification process known as Omnibus. The purpose is to reduce the bureaucratic effort while maintaining the laws’ ambition. Likely outcomes will be:
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Considering that advanced social due diligence or climate transition plants are a “nice to have”, these are now compulsory.
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Thinking about the materiality of your sustainability efforts. Prioritise efforts that materiality reduce your corporate impact, rather than quick marketing gimmicks.
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Harmonising your efforts and corporate reporting align with EU sustainability frameworks to gain a competitive advantage and future-proof your business.
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Our policy consultancy service helps business asses their compliance readiness, build compliance processes and data capabilities.
Even if you’re not directly impacted, these regulations will change how you do business. Now is the time to prepare for increased reporting demands from large retailers.
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As due diligence obligations tighten for big brands, manufacturers and suppliers must be ready to prove sustainable and ethical practices.
Material Producers – Ensure your products have recognized certifications that meet EU sustainability and due diligence expectations.
Manufacturers – Prepare sustainability data on energy use, emissions, labor conditions, and environmental impact—large brands will demand it.
Suppliers – Strengthen your data tracking & verification processes so that your customers (brands & retailers) can meet their compliance needs.
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