Sustainable Sourcing is the First Step Towards Circularity
As the Commission is moving forward with a mandatory due diligence law and the implementation of the Circular Economy Action Plan, companies have to step up their game.
For this reason, in 2021 CSR Europe has developed a comprehensive offer, spanning from EU-policy intelligence to peer-to-peer learning and updated services to meet the requirements set by policymakers.
The idea that companies should make efforts to have a positive impact on the life of employees, customers, and communities in which they operate while minimising the negative effects of their business operations on the environment and climate, has been around for several years.
However, with the pandemic, a renewed sense of urgency to strengthen human rights and environmental due diligence emerged, and policymakers are acting to prevent and mitigate future crises and ensure sustainable value chains. Already in 2020, the European Commission placed due diligence and circular economy at the heart of the EU agenda in the framework of the Green Deal. Now, in its 2021 work programme, the Commission has included a proposal for a directive on sustainable corporate governance that would also cover human rights and environmental due diligence. However, as regulators are moving from a voluntary to a mandatory approach, companies have to prepare to face new requirements while human rights due diligence risks of becoming a tick-the-box exercise.
At the same time, if human rights abuses or environmental wrongdoings are happening throughout the manufacturing cycle and are not properly addressed and mitigated, companies will not be able to successfully integrate, and fully benefit from the adoption of circular principles into their business operations. This at a time when the implementation of the Circular Economy Action plan to boost climate-neutral and circular business models ranks high in the EU policy agenda.
To assist businesses in their journey towards responsible sourcing and sustainable supply chains, as enablers and precondition for circular business models, in 2021 CSR Europe will:
Provide EU-policy intelligence, peer-to-peer learning, and experts’ knowledge via open and private events delivered in the Community of Practice Sustainable Sourcing and Circular Use of Raw Materials
Engage companies and stakeholders to scale-up on-the-ground impact around key sustainability issues in the supply chain in the form of Collaborative Platforms
Offer practical tools and services for effective, sustainable supply chain management.
1. Sustainable Sourcing and
Circular Use of Raw Materials
In this Community of Practice, companies will be supported in their efforts to adapt to the upcoming new EU requirements. Also, we plan to look deeper into how companies can improve the sustainability of their supply chain management through inclusive due diligence and circular economy principles. We will focus on topics like the role of collaboration across the value chain; the potential of digitalisation to enhance transparency, including solutions like “products passports”, which presents information on a product’s origin, durability, composition, reuse, repair and dismantling possibilities, and end-of-life handling; financial and investment tools to support sustainable and circular sourcing.
2. Collaborative Platforms
Drive Sustainability, the global collaborative platform of 11 major automotive manufacturers facilitated CSR Europe, will continue its work to push for sustainability excellence after launching a widened Common Strategy for a Circular and Sustainable Automotive Value Chain. Building up on Drive Sustainability’s engagement with suppliers, CSR Europe is launching Drive+. In this platform, Tier 1 suppliers and supplier associations will share learning with original equipment manufacturers (OEMs) and peers and make use of the Drive Sustainability toolbox.
Responsible Trucking, the collaborative platform of 12 leading companies in the transportation and logistics sector, will launch its Social Guidelines. The document will define common industry standards for all partners and their suppliers, to align the industry on important areas of social sustainability and to serve as basis for future practical action.
After launching the Corporate Biodiversity Assessment Tool to identify the strengths and weaknesses of a company’s biodiversity strategy, this year Engie, GSK, Iberdrola, Ipsen, Philip Morris International, Solvay, and Titan will continue working together in the Biodiversity & Industry platform to create a common framework for the integration of biodiversity into a company’s decision-making process.
In 2021, CSR Europe will also continue to facilitate the multi-stakeholder platform “Tyre and Road-ware Particles (TRWP)”, looking to increase collaboration with key stakeholders.
3. Building Local Sustainability Networks
In the project “Extractives for Development”, CSR Europe will work to set up local sustainability networks in two African countries with the goal of strengthening responsible sourcing and due diligence practices in the electric vehicles battery value chain. The project is implemented by CSR Europe and financed by the German Institute for International Development (GIZ) on behalf of the German Ministry of Economic Affairs and Development (BMZ).
4. Practical Tools & Services
The updated version of the Grievance Management Assessment (GMA) service will support companies in building a comprehensive and effective grievance management system. The service provides clear, easily accessible, improvement-oriented data that allows companies to adapt and fit the requirements of global supply chain due to diligence frameworks like the UN Guiding Principles on Business and Human Rights (UNGPs) and the OECD Guidance for Responsible Business Conduct.
For more information:
Materials Manager
