Baumstamm mit Efeublättern als Symbolbild für die EUDR
04.04.2025

EUDR Explained: Key Requirements, Deadlines, and Compliance Guide for Companies

The EUDR aims to strictly regulate trade in products contributing to deforestation. But what exactly does this mean for affected companies, and how can you prepare? In this article, we answer the most important questions about the EUDR and share practical tips for implementation.

What is the EUDR? A brief overview

The EUDR introduces extensive due diligence obligations. Companies must ensure their products are deforestation-free. The focus is on transparency and traceability throughout the supply chain — businesses must be able to track a product’s journey from origin to market without gaps.

The EUDR requires companies to collect detailed data. As Klaus Wiesen, our supply chain expert, explains: “Given the complexity, it’s clear that software is a must for implementation. That already applies to the LkSG, but even more so for the EUDR — a pragmatic approach is nearly impossible without digital tools.”

When will the EUDR come into force?

The EUDR applies to large and medium-sized companies starting December 30, 2025. Small companies have an additional six months to comply.

Starting December 30, 2025 Starting June 30, 2026
Large and medium-sized companies meeting at least two of these criteria:

– More than 50 employees

– More than €10 million revenue

– More than €5 million balance sheet total

Small and micro-enterprises meeting at least two of these criteria:

– Fewer than 50 employees

– Less than €10 million revenue

– Less than €5 million balance sheet total

Overview on EUDR Deadlines

Build your EUDR strategy – practical workshop for companies

Prepare your business for the EUDR! In our EUDR Scoping Workshop, we analyze your supply chain, identify risks, and create a tailored roadmap for compliant implementation.

Who is affected by the EUDR?

The EUDR is product-based and applies to all companies trading EUDR-relevant commodities and products derived from them.

The regulation differentiates between roles within the market, which determines specific obligations — see Determine your EUDR market role below.

Operator Trader
Companies placing EUDR-relevant products on or exporting from the EU market for the first time Companies making EUDR-relevant products available on the EU market

Which products are covered by the EUDR?

The regulation applies to the following commodities and their derived products:

  • Wood
  • Palm oil
  • Coffee
  • Cocoa
  • Cattle
  • Soy
  • Rubber

There are no thresholds or volume limits. The list of covered commodities is expected to expand over time.

Exemptions:

  • 100% recycled materials
  • Packaging materials solely used for support, protection, or transportation
  • User manuals
  • Bamboo products
  • Products manufactured before the EUDR’s reference date (June 29, 2023), except for wood products
Overview on products covered by the EUDR

What conditions must products fulfill under the EUDR?

Starting with the implementation phase: Import, trade and export of the above-mentioned raw materials and their derived products on the EU internal market are only permitted, if these three conditions are met:

  • Deforestation-free: The products were manufactured without converting natural forest into agricultural land or tree plantations after 31.12.2020. This also applies if deforestation was considered legal in the country of origin!
  • Production in accordance with the relevant rights of the country of origin: This concerns both environmental protection and human rights. Species protection measures, anti-corruption measures, labor rights, the UN Declaration on the Rights of Indigenous Peoples, trade law, etc. have been complied with.
  • Due diligence declaration available: A risk assessment has been carried out for the product, the due diligence obligations have been complied with and there is no or only a negligible risk of deforestation.

How can companies prepare? Practical steps for EUDR implementation

Step 1: Determine your EUDR market tole

Companies must classify themselves as operators or traders — and as SMEs or non-SMEs according to EUDR criteria (note: these differ from general EU definitions).

Key differences:

  • Operators must conduct risk assessments, mitigate risks, and submit a due diligence statement via the EU’s “TRACES” system.
  • Traders may rely on the due diligence statement, but non-SME traders must verify risk assessments through spot checks.
  • SMEs benefit from a simplified set of obligations, including reduced reporting requirements.

Step 2: Collect EUDR data

Gather detailed information about your products and raw materials — including descriptions, volumes, suppliers, and countries of origin.

The EUDR requires geo-location data for every plot where relevant commodities are produced, including production dates — retroactively from December 31, 2020.

Ensure proof that all legal rights are respected in the country of origin.

Step 3: Conduct risk assessment

Evaluate the deforestation risk for any new product or commodity.

Factors include:

  • Country of origin
  • Deforestation trends
  • Political and social conditions
  • Supply chain complexity

The EU will provide a benchmarking system categorizing countries by risk level. Only products with no or negligible risk may enter the EU market.

Step 4: Mitigate risks

If risks are identified, work with suppliers to reduce them. Develop new codes of conduct, strategies, and control measures. Verify compliance via supplier audits or documentation

Step 5: Document and report

Companies must maintain detailed records and submit reports.

For every batch, a due diligence statement or EUDR compliance confirmation must be included — customs will verify compliance based on risk assessments.

Except for SMEs, companies must also publicly report on risk assessments, due diligence processes, and mitigation measures. If your company is subject to the CSRD, you can integrate EUDR reporting into your sustainability report.

What are the EUDR sanctions?

Violations or non-compliance may result in:

  • Confiscation of unlawful profits
  • Fines proportional to the damage caused, minimum 4% of annual turnover
  • Seizure of goods or products
  • Temporary import bans
  • Exclusion from public funding or tenders
  • Public naming and shaming of the company and its violation

Background on the EUDR

In the past 30 years, global deforestation has wiped out an area larger than the EU. Forest loss accelerates climate change and biodiversity loss.

The EUDR follows the EU Timber Regulation (EUTR) from 2013, which was criticized for weak enforcement. As part of the European Green Deal, the EUDR strengthens these efforts.

From 2025 onwards, it will be prohibited to place, make available, or export certain products in the EU market if they are linked to deforestation or forest degradation since January 2021 — regardless of whether the forest is in Germany, Romania, or Brazil.

This information is summarized editorial content and should not be considered legal advice. VERSO assumes no liability. 

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LKW-Fahrer mit Klemmbrett – Symbolbild für die Dekarbonisierung der Lieferkette
31.03.2025

Supply Chain Decarbonization: How To Achieve Your Climate Goals

Engage suppliers and strategically reduce supply chain emissions – your step-by-step guide to supply chain decarbonization.

Around 80% of a company’s emissions originate in the supply chain, making it a key focus on the path to net zero. But setting climate targets alone isn’t enough. The real challenge is achieving them. This article explores how to make supply chain decarbonization a reality – by turning targets into actions.

Why Is It So Important To Decarbonize Your Supply Chain?

Let’s look at two key reasons why decarbonizing the supply chain should be a top priority for businesses.

Climate Action Is No Longer Optional

Regulations such as CSDDD, EUDR, and CBAM demand greater supply chain transparency, while CSRD’s ESRS E1 standard (Climate Change and Climate Protection) requires companies to set and track emission reduction targets – including Scope 3.

Overview on Scopes 1-3

That’s the compliance side. But focusing only on regulations means dealing with bureaucracy without unlocking real business value.

Supply Chain Decarbonization Future-proofs Your Business

Even if your company isn’t legally required to take climate action, proactively reducing emissions pays off.

Three Reasons to act now: 

  1. Climate risks disrupt supply chains. Extreme weather events are becoming more frequent, damaging factories, transport routes, and infrastructure. The result? Delays, shortages, and financial losses.
  2. Sustainable products drive competitive advantage. A Capgemini study found that 79% of consumers want to make more sustainable purchasing choices, and 66% actively look for eco-friendly products and services.
  3. ESG commitments are now a key factor in procurement. Large corporations subject to CSRD or CSDDD will require clear ESG data from suppliers. According to the Business Development Bank of Canada, 92% of large companies will demand ESG disclosures from their vendors.

How to assess and decarbonize your supply chain 

Step 1: Estimate Scope 3 Emissions

Start by mapping out your supplier network and compiling a spend list and product categories. This helps you estimate emissions across your supply chain.

If precise data is unavailable, start with industry benchmarks and refine your estimates as supplier-specific data becomes available.

Step 2: Identify Hotspots & Assess Supplier Climate Maturity

Next, evaluate which suppliers contribute the most emissions and how advanced their climate strategies are. The VERSO Supply Chain Hub automates this assessment.

Supplier Climate Maturity Levels: 

  • No climate strategy: No decarbonization measures in place. 
  • Low maturity: Some CO₂ reduction efforts, but no structured plan. 
  • Intermediate maturity: Concrete reduction measures exist but aren’t fully embedded in business operations. 
  • High maturity: Decarbonization is systematically integrated into corporate strategy. 
  • Best practice leader: Sustainability has long been a priority, with innovative approaches and industry-leading standards.

Key Assessment Indicators: 

  • Raw material sourcing
  • Energy & resource efficiency
  • Use of renewable energy in production & transport
  • Verified CO₂ offset projects
  • Voluntary sustainability reporting

By identifying emission hotspots and assessing supplier maturity, you can prioritize action where it’s needed most.

Step 3: Set Climate Targets & Engage Suppliers 

Define science-based climate targets aligned with the Paris Agreement and backed by climate research. The Science Based Targets initiative (SBTi) offers industry-specific guidance.

Once goals are set, it’s time to engage your suppliers. The SBTi recommends a five-step approach: 

  1. Communicate climate expectations to suppliers. 
  2. Collaborate to align on shared goals. 
  3. Support suppliers with knowledge and resources. 
  4. Monitor progress through transparent data tracking. 
  5. Scale and refine strategies over time. 

Pro tip: Involve suppliers from the start to foster collaboration. Decarbonization is a team effort! 

Step 4: Implement & Scale Your Climate Strategy

To reach long-term supply chain climate goals, companies must actively support their suppliers in implementing sustainable practices. 

Ways to Drive Climate Progress in Your Supply Chain: 

  • Provide knowledge & resources: Trainings and tools can improve supplier climate maturity.
  • Create competitive pressure: Large corporations increasingly demand ESG data, and reporting requirements will expand significantly in the coming years.

Regularly review progress, optimize processes, and keep climate action on the agenda in supplier meetings.

Transparency and accountability are key. Make it clear to your suppliers: Those who don’t commit to sustainability may risk losing business.

That said, low-maturity suppliers won’t transform overnight. But they should demonstrate intent to shift toward sustainable production and logistics. In the long run, climate action strengthens not only the environment but also supply chain resilience.

How to Make Supply Chain Decarbonization Easier

The larger and more complex your supply chain, the harder it is to track emissions and manage climate action. Fragmented data and limited resources create major challenges for procurement teams.

So, how can you achieve your supply chain climate goals efficiently? 

With the right tools! The VERSO Climate Hub and VERSO Supply Chain Hub simplify supply chain decarbonization:

  • VERSO Supply Chain Hub automates supplier climate maturity assessments and collects supplier-specific CO₂ footprints. These insights feed into the Climate Hub, refining your strategy and tracking reductions.
  • Built-in reporting tools generate compliant reports for GRI/CSRD, CDP, and SBTi.
Manage your Supply Chai Emissions with VERSO

Get in touch with us. Together, we’ll find the right strategy to help your company reach its net zero goals!

* This information is summarized editorial content and should not be considered legal advice. VERSO assumes no liability. 

ESG in der Lieferkette
14.02.2025

ESG in der Lieferkette: 19+1 To-dos für den Einkauf

Anforderungen bis zum Horizont: Wo sollten Sie am besten anfangen, um ESG-Compliance entlang der Lieferkette zu schaffen und die vielen Chancen von ESG für Ihr Unternehmen zu realisieren? Dieser Beitrag zeigt’s – mit 19 To-dos und einem Bonustipp.

Für Einkaufs- und Supply-Chain-Verantwortliche bedeuten Regularien wie das LkSG, die CSDDD, die CSRD, die EUDR und der CBAM: mehr Dokumentationspflichten, höhere Transparenzanforderungen und steigender Druck auf Lieferanten.

Trotz aller Herausforderungen ist ESG-Compliance in der Lieferkette eine Chance, Risiken frühzeitig zu erkennen, Kosten zu senken und die eigene Marktposition zu stärken. Mit der richtigen Strategie wird Nachhaltigkeit vom Cost Center zum Profit Center.

Doch wo fangen Sie am besten an? Diese praxisnahe Checkliste mit 19 umsetzbaren To-dos und einem Bonustipp verschafft Klarheit.
 

Leiten Sie diesen Beitrag gern weiter, wenn er Ihnen weitergeholfen hat.  

ESG-Regularien überblicken und priorisieren

1. Abgleichen, welche ESG-Regularien Ihre Lieferkette betreffen könnten

Lieferketten-Regularien mit Anwendung in 2025 Lieferketten-Regularien mit Anwendung nach 2025
LkSG Forced Labour Regulation
CSRD CSDDD
EUDR ESPR/Digitaler Produktpass
EU-Taxonomie Right to Repair
CBAM
EU-ETS
Weitere Regularien wie Batterie-VO oder Kreislaufwirtschaftsgesetz

2. Prüfen, welche Regularien für Ihr Unternehmen gelten und wann – einige Regularien (z.B. CSRD, CSDDD und EUDR) werden gestaffelt umgesetzt

3. Für die meisten Unternehmen sind aktuell vor allem CSRD, LkSG/CSDDD, CBAM und EUDR relevant

Zum Weiterlesen:

ESG-Daten in der Lieferkette erfassen und Transparenz erhöhen

4. Aktuelle Lieferanten-Stammdaten einholen und Ansprechpartner festlegen

5. Standardisierte ESG-Abfragen für Lieferanten nutzen, durch gezielte Audits überprüfen

6. Scope-3-Emissionen und Hotspots erfassen

7. Klimaziele für die Lieferkette festlegen, Klimastrategie implementieren

Zum Weiterlesen:

ESG-Risiken identifizieren und managen

8. Lieferanten nach menschenrechtlichen, umweltbezogenen und Klimarisiken überprüfen (abstrakte, konkrete und anlassbezogene Risikoanalyse)

9. Maßnahmen zur Risikoprävention etablieren und Abhilfemaßnahmen schaffen

10. Ganzheitliches, zukunftssicheres Managementsystem für Lieferketten-Risiken etablieren

Lieferantenmanagement für langfristige ESG-Compliance stärken

11. ESG-Kriterien in Lieferverträgen verankern, Code of Conduct kommunizieren

12. ESG-Reifegrad der Lieferanten ermitteln

13. Schulungen und Unterstützungen für Lieferanten anbieten, um ESG-Standards zu verbessern

14. ESG-Performance der Lieferanten regelmäßig prüfen

Zum Weiterlesen:

IT-Systeme prüfen und Datenverwaltung optimieren

15. Schnittstellenfähigkeit Ihrer IT-Systeme prüfen

16. Digitale ESG-Datenverwaltung einführen, um vollständige Transparenz und Kommunikation mit Lieferanten zu gewährleisten

ESG-Reporting abhaken und Compliance sicherstellen

17. Daten konsolidieren und Berichtsprozesse standardisieren

18. Regelmäßiges Reporting sicherstellen, dabei Synergien nutzen: Einige BAFA-Anforderungen (LkSG) überschneiden sich mit den ESRS (CSRD), EUDR- und CBAM-Daten und können für CSRD-Bericht weiterverwendet werden

19. Externe Prüfstellen (z.B. Wirtschaftsprüfer:innen) frühzeitig einbinden

Bonustipp: So gelingt ESG-Compliance in der Lieferkette mit weniger Aufwand

Zugegeben: Die ESG-Vorgaben für Lieferkettenverantwortliche sind anspruchsvoll. Aber mit der richtigen Strategie lassen sie sich effizient bewältigen. Nutzen Sie diese Checkliste als ersten Anhaltspunkt, um Ihre Lieferkette ESG-konform aufzustellen. Eine genauere Aufschlüsselung finden Sie in unserem Praxisleitfaden für nachhaltige Lieferketten.

Unser Bonus-Tipp: Der VERSO Supply Chain Hub schafft Transparenz und unterstützt Sie effizient bei der Umsetzung von LkSG, CSRD, CBAM und EUDR – automatisiert und rechtlich abgesichert.

Praxisleitfaden für nachhaltige Lieferketten

Dieser Leitfaden verschafft Ihnen auf 17 Seiten einen Überblick über alle wesentlichen Pflichten und Anforderungen.

* Bei diesen Informationen handelt es sich um redaktionell zusammengefassten Content, der nicht als Rechtsberatung zu verstehen ist. VERSO übernimmt keine Haftung. 

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  • Best Practices aus den Bereichen ESG und nachhaltige Lieferketten
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Ein Mann führt einen anderen durch eine Fabrikhalle. Symbolbild für Lieferantenbeziehungen. Darauf der Text: Nachhaltigkeit in der Lieferkette – Best Practices im Supplier Management
20.12.2024

Nachhaltigkeit in der Lieferkette: Best Practices im Supplier Management

Supplier Management ist der Schlüssel zur ESG-Compliance. Lesen Sie, wie Sie gezielt Ihre Lieferantenbeziehungen stärken.

Ihre Lieferkette ist nur so stark wie ihr schwächstes Glied. Doch wie sorgen Sie dafür, dass Sie sich bei der Nachhaltigen Transformation Ihrer Supply Chain auf die Lieferanten verlassen können? Supplier Management ist der Schlüssel – dieser Beitrag zeigt, wie Sie Transparenz schaffen, Risiken minimieren und Ihre Lieferantenbeziehungen mit dem VERSO Supply Chain Hub strategisch stärken.

Warum Lieferanten Teil der Nachhaltigkeitsstrategie sein sollten

Nachhaltige Lieferketten sind Teamwork. Wer hier vorankommen will, muss eng mit den Lieferanten zusammenarbeiten. Zwei Gründe sprechen besonders dafür.

Lieferkettentransparenz braucht Zusammenarbeit

Die CSRD verlangt Unternehmen umfassende Transparenz in der gesamten Wertschöpfungskette ab. Ohne die aktive Zusammenarbeit mit Lieferanten ist es nahezu unmöglich, entsprechende Prozesse zu schaffen und die notwendigen Informationen zu Arbeitsbedingungen, CO₂-Emissionen oder Produkt-Compliance zu erhalten.

Eine Kette ist nur so stark wie ihr schwächstes Glied

Zweiter Aspekt: Soll ihre gesamte Lieferkette nachhaltig werden, muss auch jeder Teil dieser Lieferkette nachhaltig sein. Klingt erst einmal völlig logisch. In der Praxis bedeutet das: Nachhaltigkeit sollten Sie nicht nur top-down vorgeben, und hoffen, dass Ihre Vorstellungen umgesetzt werden. Sehen Sie es vielmehr als Projekt, an dem Sie gemeinsam mit Ihren Lieferanten arbeiten. Das heißt z.B. auch, dass einige Lieferanten bei der Nachhaltigen Transformation stark entwickelt werden müssen. Denn nur, wenn Sie im Rahmen des Supplier Managements jedes Glied ihrer Kette stärken, ist die Resilienz wirklich gegeben.

Herausforderungen im Supplier Management

Ein effektives Supplier Management zu etablieren, ist einfacher gesagt als getan. Unternehmen stehen häufig vor Problemen wie schlechter Datenqualität, komplexen Anforderungen und mangelnden Prozessen. Doch mit den richtigen Ansätzen meistern Sie Ihre Herausforderungen im Lieferantenmanagement.

Lückenhafte Daten und fehlende Transparenz

Ein häufiges Problem im Lieferantenmanagement ist der Mangel an belastbaren Daten. Häufig fehlen präzise Informationen zu Arbeitsbedingungen, CO₂-Emissionen oder Produkt-Compliance. Einmal jährlich Daten abzufragen, reicht jedoch nicht aus. Besser ist es, Ihre Lieferanten und deren ESG-Compliance kontinuierlich zu monitoren.

Komplexität geht über Nachhaltigkeit hinaus

Supplier Management umfasst mehr als nur das Diktieren von Nachhaltigkeitszielen. Unternehmen müssen Zertifikate verwalten, Risiken überwachen und bewerten, Sanktionen beachten und, und, und. Nachhaltigkeit darf nicht isoliert betrachtet werden, sondern muss in eine umfassende Lieferantenbewertung integriert werden.

Ungünstige Lieferantenauswahl und mangelnde Entwicklung

Die Auswahl und Entwicklung von Lieferanten ist ein weiterer kritischer Punkt. Häufig fehlen klare Prozesse zur Bewertung und Weiterentwicklung. Zudem werden Lieferanten oft nur während Audits überprüft. Die Entwicklung von Lieferanten hin zu mehr Nachhaltigkeit erfordert Zeit und gezielte Maßnahmen. Daten sollten nicht nur erfasst, sondern zwischen Audits aktiv genutzt werden, um Fortschritte anzustoßen. Gleichzeitig bleiben Kommunikation und Dokumentation Schlüsselfaktoren – insbesondere bei der Lieferantennominierung.

Klare Kommunikation und Partnerschaft

Transparenz und eine offene Kommunikation sind essenziell. Setzen Sie auf eine partnerschaftliche Zusammenarbeit. Legen Sie Ihren Gespräche Daten zugrunde, um Transparenz und Vertrauen zu fördern. Vor-Ort-Besuche und gezielte Audits schaffen eine Grundlage für eine langfristige Zusammenarbeit und individuelle Verbesserungen.

Nachhaltige Lieferketten funktionieren nicht auf Knopfdruck

„Nachhaltige Beschaffung lässt sich nicht nebenbei umsetzen. Der Weg dorthin erfordert neue Strukturen und bindet kontinuierlich Ressourcen“, betont unser Supply-Chain-Experte Klaus Wiesen im Interview zu nachhaltigen Lieferketten. Das Problem: Viele Unternehmen schieben Nachhaltigkeit so lange wie möglich auf – und stehen dann kurz vor der Frist unter massivem Druck.

Praxisleitfaden für nachhaltige Lieferketten

Verschaffen Sie sich einen Überblick über alle wesentlichen Pflichten und Anforderungen. Außerdem bekommen Sie praxisnahe Tipps für nachhaltige, zukunftssichere Lieferketten.

Unsere Tipps für starkes Supplier Management

Wie meistern Sie diese Herausforderungen nun aber und schaffen das Fundament für starke Lieferantenbeziehungen? Hier sind unsere Top-Tipps für zielführendes Lieferantenmanagement – und wie es mit dem VERSO Supply Chain Hub gelingt.

Von Anfang an auf zuverlässige Lieferanten setzen

  • Etablieren Sie klare Standards für die Lieferantennominierung, z. B. Nachhaltigkeitskriterien und finanzielle Stabilität.
  • Überwachen Sie Ihre Kriterien im VERSO Supply Chain Hub kontinuierlich.

Klar kommunizieren und die Partnerschaft fördern

  • Führen Sie Gespräche datenbasiert und setzen Sie auf transparente Kommunikation.
  • Fördern Sie eine partnerschaftliche Zusammenarbeit durch regelmäßige Audits und Vor-Ort-Besuche.

Verbindliche Standards und Beschaffungspolicies etablieren

  • Entwickeln Sie – wenn noch nicht getan – verbindliche Beschaffungspolicies inkl. Nachhaltigkeitsziele, Compliance-Vorgaben und Qualitätsanforderungen. Lassen Sie diese nicht nur unterschreiben, sondern prüfen Sie sie konkret nach.
  • Überwachen Sie Einhaltung und Abweichungen mit dem VERSO Supply Chain Hub.

Lieferanten-Entwicklung aktiv fördern

  • Fördern Sie Lieferanten durch Schulungen und gemeinsame Projekte.
  • Setzen Sie Ihre Nachhaltigkeitsstrategie als festen Punkt auf die Agenda in Lieferantengesprächen.
  • Nutzen Sie Monitoring-Tools, um Fortschritte zu dokumentieren und sich das Commitment Ihrer Lieferanten einzuholen.

Daten kontinuierlich einholen

  • Erheben Sie die nötigen Daten nicht nur punktuell, sondern monitoren Sie kontinuierlich.
  • Machen Sie Ihren Lieferanten die Datenübertragung dabei so einfach wie möglich – z.b. mit standardisierten Abfragen im VERSO Supply Chain Hub.

Gezielt Tools im Supplier Management einsetzen

  • Machen Sie es sich nicht unnötig kompliziert – eine digitale Plattform erleichtert Ihnen das Datenmanagement, Monitoring und die Risikoüberwachung um ein Vielfaches.
  • Der VERSO Supply Chain Hub bietet zahlreiche Funktionen, die speziell auf Supplier Relationship Management (SRM) zugeschnitten sind.

CSRD: 10 Tipps zur Datensammlung

So sammeln Sie strategisch alle wichtigen Daten für den CSRD-Bericht.

Lieferantenmanagement als Schlüssel zur ESG-Compliance

Ein starkes Supplier Management ist der Grundstein für nachhaltige und resiliente Lieferketten. Klare Prozesse, transparente Kommunikation und der gezielte Einsatz des VERSO Supply Chain Hub ermöglichen es Unternehmen, nicht nur regulatorische Anforderungen wie die CSRD zu erfüllen, sondern auch langfristige Wettbewerbsvorteile zu sichern.

Gehen Sie von der Theorie doch am besten gleich zur Praxis über und erfahren Sie in einer kostenlosen, unverbindlichen Demo, wie VERSO Ihr Supplier Management zukunftssicher macht.

* Bei diesen Informationen handelt es sich um redaktionell zusammengefassten Content, der nicht als Rechtsberatung zu verstehen ist. VERSO übernimmt keine Haftung. 

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Tragen Sie sich ein und erhalten Sie regelmäßig Neuigkeiten zu:

  • Aktuellen ESG-Themen und Gesetzesänderungen
  • Best Practices aus den Bereichen ESG und nachhaltige Lieferketten
  • News zu VERSO
  • Sustainability Events uvm.

Jetzt anmelden!

Ein Stapel Bewehrungsstahl-Stangen, als Symbolbild für den CBAM
31.10.2024

CBAM – Carbon Border Adjustment Mechanism explained simply

The Carbon Border Adjustment Mechanism (CBAM) is part of the EU climate strategy and aims to price CO2 emissions beyond the EU. The CBAM brings new challenges for procurement and the supply chain. Read this article to find out what you can expect from the CBAM and how you can master it!

Getting started: What is CBAM?

CBAM (“Carbon Border Adjustment Mechanism”) is the official title of the new Regulation EU 2023/956. To understand the background to this regulation, it is best to go back to 2005. This was the year in which the European Emissions Trading Scheme (EU ETS) was introduced; the European instrument for implementing the Kyoto Protocol. In order to actually achieve the climate protection targets set, the EU has adapted the emissions trading system several times – most recently in 2021, as part of the Fit for 55 package. The EU ETS aims to limit emissions with a cap and trade system. An upper limit is set for the amount of emissions that companies are allowed to emit. If these are not sufficient, allowances can be purchased. This has been a problem in recent years. In order to avoid the strict EU requirements and the associated costs, some companies have relocated theirCO2-intensive production to countries with no or lowerCO2 prices. This phenomenon is also known as “carbon leakage ” or “relocation ofCO2 emissions“. The CBAM now wants to counteract this. After publication on August 17, 2023, the CBAM officially came into force on October 1, 2023. Anyone importing emission-intensive goods into the EU is now obliged to purchase offsetting CBAM certificates.

CBAM should…

  • strengthen existing measures to reduce emissions,
  • encourage companies to reduce their production emissions instead of relocating, and
  • protect companies that continue to produce in the EU from cost-related competitive disadvantages

Which goods and companies are affected by the CBAM?

The CBAM initially affects all companies that import particularly emission-intensive product groups in pure or processed form from non-EU countries. The CBAM covers:

  • Iron and steel
  • Cement
  • Fertilizer
  • Aluminum
  • Hydrogen
  • Electricity
Infografik: Diese Warengruppen sind vom CBAM betroffen (verarbeitet und in Reinform): Eisen und Stahl, Zement, Düngemittel, Aluminium, Wasserstoff und Strom. Die Pflicht gilt unabhängig von Mitarbeiterzahl und Bilanz / Erlösen.

Annex I of the CBAM Regulation lists the CN codes concerned in detail – but you can also find them more simply in our compact CBAM factsheet.

The most important facts about CBAM

From affected HS codes to deadlines: our factsheet summarises all the relevant information at a glance.

The EU reserves the right to adapt regulations and product groups until 2026. The scope of application will therefore be extended in the future. By 2030, all products that are subject to EU emissions trading are to be included in the CBAM. The new regulations cover both direct production emissions and indirect emissions from the manufacture of preliminary products or the electricity required. In contrast to the recently introduced CSRD, theCO2 border adjustment mechanism does not differentiate between turnover and employee numbers. The new system is therefore mandatory for almost all companies in the manufacturing and production industry, provided they import from third countries

How does the CBAM work?

CBAM Regulation: Timetable

Let’s move on from theory to practice. After coming into force on October 1, 2023, a transitional period began. During this period, your company is only required to report and must prepare quarterly updated reports on the goods you import. Here is a brief overview of the CBAM timetable and the corresponding requirements:

  • 08.2023: Publication of the CBAM Implementing Regulation
  • 10.2023: Entry into force, start of the transition phase with quarterly reporting obligation for imported CBAM goods
  • 01.2024: Start of the reporting obligation
  • 07.2024: Obligation to record specific emissions data
  • 01.2025: Registration obligation for CBAM applicants
  • 01.2026: Start of implementation phase and certificate trading
Zeitstrahl: Fristen und Phasen vom CBAM 17.08.2023 Veröffentlichung CBAM-Durchführungsverordnung 01.10.2023 Inkrafttreten, Beginn der Übergangsphase 01.01.2024 Beginn der Berichtspflicht 
01.04.2024 Ende der Möglichkeit, Standardwerte für THG-Emissionen zu verwenden
01.01.2025 Registrierungspflicht für CBAM-Anmelder 01.01.2026 Beginn der Implementierungsphase & Zertifikatehandel

This belongs in the CBAM report

Ab 01.10.2023 – Quarterly report, to be submitted by 1 month after the end of the quarter

  • Master data of your company
  • CBAM account number
  • Number and type of imported goods
  • CBAM-relevant greenhouse gas emissions (specific, no standard values!)
  • CO2 offset price in the country of origin

From 31 May 2026 – annual CBAM declaration for the previous calendar year, from 2026

  • Total quantity of imported goods
  • Total amount of grey emissions for each product group
  • Total number of CBAM allowances allocated to gray emissions – minus theCO2 price paid in the country of origin

Emissions offsetting obligation and CBAM certificate trading

From 01.01.2026, the following applies: All emissions that your company has not yet offset in the country of origin of your goods must now be offset via certificates. To do this, you first need a CBAM registration authorization for your company’s branch. Only “approved registrants” will be entitled to purchase certificates and import CBAM goods from 2026. You can then purchase unlimited certificates for your company on a central platform. The price of CBAM certificates is based on the weekly average price of EU ETS certificates. In principle, you should always have enough certificates available to offset at least 80 percent of your imported CBAM products. You must determine the necessary offset and the corresponding quantity of certificates yourself. CBAM certificates are valid for two years and can be surrendered.

Guideline: Sustainable supply chains

CBAM is not the only organisation that demands sustainable action along the supply chain. Find out in our practical guide what the numerous ESG regulations mean for purchasing and get tips on implementation.

FAQ about CBAM

Where do I submit my CBAM reports?

Declarants subject to reporting obligations initially submit their reports in the CBAM transitional register. You can access the register via the customs portal.

Does the CBAM provide for sanctions?

Yes, the CBAM Regulation provides for “proportionate and dissuasive sanctions” in the event of non-compliance. Penalties of 10 to 50 euros per non-reported tonneof CO2 emissions are already envisaged in the transition phase.

Read more in our article “Sanctions for errors in ESG reporting and implementation”.

Are there threshold values for the import of CBAM products?

Yes, the reporting obligation only applies to imports with a customs value of 150 euros or more per consignment. Apart from that, the CBAM applies independently.

Can I still use default values in the CBAM report?

Since 31 July 2024, companies subject to CBAM reporting requirements are no longer allowed to use default emission values. If you still do not have the real data – e.g. because your suppliers do not provide it – the German Emissions Trading Authority may allow default values under certain circumstances. Proceed as follows:

  • Map your procedure for determining the real data
  • Provide evidence of your efforts or justify in a comprehensible manner that you have made ‘all reasonable efforts’
  • To do this, use the ‘Comments’ field in the CBAM transition tab
  • There must be no other discrepancies in the submitted report – so take a close look!

What is the best way to implement the CBAM?

With the CBAM regulations, your company once again has a lot on its plate. What is intended to be a sensible and, above all, important step for the environment and the economy is in practice associated with a lot of bureaucracy and effort – especially when it comes to collecting all the necessary data. Close cooperation with your suppliers is essential here. With VERSO, you can avoid the data chaos and optimally prepare your supply chain for upcoming CBAM requirements: In the CBAM module of the Supply Chain Hub, you automatically and efficiently record all the data that the newCO2 border adjustment system requires of you – including proof of your efforts. Watch a free demo now to see how it works:

* This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

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Update LkSG und CSDDD - die wichtigsten Änderungen
10.10.2024

Update zu LkSG und CSDDD: Die wichtigsten Änderungen

Die neue EU-Lieferkettenrichtlinie CSDDD stellt im Vergleich zum deutschen Lieferkettengesetz LkSG neue Anforderungen an Unternehmen. Um die europäische Regelung mit den nationalen Vorschriften in Einklang zu bringen, sind Anpassungen unvermeidlich. In diesem Beitrag zeigen wir Ihnen, worauf Sie vorbereitet sein sollten, und geben Ihnen Handlungsempfehlungen.

Einführung in die CSDDD

Die Corporate Sustainability Due Diligence Directive (CSDDD) ist am 25. Juli 2024 in Kraft getreten. Ziel der EU-Lieferkettenrichtlinie ist es, menschenrechtliche und umweltbezogene Sorgfaltspflichten in Unternehmen EU-weit zu vereinheitlichen. Unternehmen in der EU müssen entlang ihrer gesamten Lieferkette potenzielle Risiken identifizieren und gezielte Maßnahmen ergreifen, um diese zu minimieren – insbesondere bei Hochrisiko-Lieferanten. Im Vergleich zum deutschen Lieferkettensorgfaltspflichtengesetz (LkSG) geht die CSDDD noch weiter und umfasst zusätzliche soziale und ökologische Aspekte, die bisher nicht im Fokus standen.

Inhalt dieses Blogbeitrags:

  • Vergleich zwischen CSDDD und LkSG
  • Geplante Anpassungen des LkSG in Deutschland
  • Handlungsempfehlungen für Unternehmen

Vergleich zwischen LkSG und CSDDD

Obwohl das deutsche LkSG und die europäische CSDDD ähnliche Ziele verfolgen, gibt es wichtige Unterschiede in ihren Anforderungen.

Zunächst betrifft das die Reichweite der Due-Diligence-Verpflichtungen. Beide Regularien verwenden einen risikobasierten Ansatz. Während das LkSG aber vor allem auf direkte Lieferanten fokussiert ist, fordert die CSDDD eine Betrachtung der gesamten Lieferkette. Bei Hochrisiko-Lieferanten bedarf es einer vertieften Analyse.

Außerdem deckt die CSDDD einen breiteren Bereich an Themen ab. Die europäische Richtlinie umfasst neben den 13 aus dem LkSG bekannten Risikokategorien zusätzliche soziale und ökologische Themen.

Unterschiede gibt es auch beim Geltungsbereich:

LkSG

  • Seit 2024: Unternehmen mit mehr als 1000 Beschäftigten

CSDDD

  • EU-Unternehmen
    • Ab 2027: mit mehr als 5000 Beschäftigten und einem Jahresumsatz von über 1500 Millionen Euro
    • Ab 2028: mit mehr als 3000 Beschäftigten und einem Jahresumsatz von über 900 Millionen Euro
    • Ab 2029: mit mehr als 1000 Beschäftigten und einem Jahresumsatz von über 450 Millionen Euro
  • Nicht-EU-Unternehmen:
    • mit einem Nettoumsatz von über 450 Millionen Euro in der EU generiert
Geltungsbereich LkSG und CSDDD

Schließlich sieht die CSDDD auch zivilrechtliche Haftungen vor, die im LkSG nicht enthalten sind. Betroffenen Unternehmen drohen also rechtlichen Konsequenzen, wenn sie ihren Sorgfaltspflichten nicht nachkommen. 

Die CSDDD und die Anpassung des LkSG

Da die Anforderungen der CSDDD über die des LkSG hinausgehen, ist eine Anpassung des deutschen Gesetzes unvermeidlich. Die Bundesregierung hat in ihrer Wachstumsinitiative angekündigt, das Lieferkettengesetz möglichst bürokratiearm an die neuen europäischen Regelungen anzupassen. Wie genau diese Anpassungen aussehen werden, ist allerdings noch offen.

Ein zentrales Thema ist der Geltungsbereich, da in Deutschland aktuell mehr Unternehmen vom LkSG betroffen sind als in der CSDDD vorgesehen. Es wurde diskutiert, ob die deutsche Regierung den Anwendungsbereich des LkSG ändern kann. Jedoch hindert der Wortlaut der CSDDD die EU-Mitgliedstaaten ausdrücklich daran, den Geltungsbereich bestehender nationaler Gesetze zu verringern. Wie die Bundesregierung mit diesem Konflikt umgehen wird, bleibt abzuwarten.

Die Bundesregierung plant zudem ein Sofortprogramm für untergesetzliche Maßnahmen, das Unternehmen entlasten und ihnen bei der praktischen Umsetzung des LkSG helfen soll. Dieses Programm, das im September 2024 eingeführt wurde, enthält Maßnahmen, die kurzfristig durch das Bundesamt für Wirtschaft und Ausfuhrkontrolle (BAFA) operationalisiert werden können, um eine praxisnahe Anwendung der Vorgaben zu ermöglichen.

Eine weitere Anpassung, die bereits konkret geplant ist, betrifft die Berichtspflichten. Um doppelte Berichtspflichten zu vermeiden, sollen Unternehmen, die sowohl unter die Corporate Sustainability Reporting Directive (CSRD) als auch unter das LkSG fallen, ein Wahlrecht erhalten. Sie können entweder den CSRD-konformen Nachhaltigkeitsbericht oder den BAFA-Fragebogen für das LkSG nutzen. Allerdings gibt es Unterschiede zwischen den beiden Berichtsanforderungen: Der CSRD-Bericht deckt nicht alle Details ab, die im BAFA-Fragebogen verlangt werden. Unternehmen, die sich für den CSRD-Bericht entscheiden, sollten daher auf mögliche Nachfragen des BAFA vorbereitet sein und eine umfassende Dokumentation ihrer Sorgfaltspflichten intern sicherstellen.

Umsetzung des LkSG: Empfehlungen für Unternehmen

Was bedeuten die Anpassungen des deutschen LkSG für Sie und Ihr Unternehmen. Wir haben Handlungsempfehlungen zusammengestellt:

1. Informiert bleiben

Die regulatorischen Anforderungen entwickeln sich stetig weiter. Es ist wichtig, dass Sie über Neuerungen im Rahmen des LkSG und der CSDDD informiert bleiben, um rechtzeitig auf Änderungen reagieren zu können. Dazu bietet sich unser VERSO-Blog an und folgen Sie uns auf LinkedIn.

2. Bestehende Prozesse fortsetzen

Auch wenn einige Anpassungen des LkSG noch in der Diskussion sind, sollten Sie Ihre bisherigen Maßnahmen zur Einhaltung der Sorgfaltspflichten in der Lieferkette fortsetzen. So stellen Sie sicher, dass Sie auf zukünftige Anforderungen vorbereitet sind.

3. Sorgfaltspflichten etablieren

Unabhängig von gesetzlichen Vorgaben lohnt es sich, wirksame Sorgfaltspflichten zu etablieren. Diese helfen Ihnen, resilientere Lieferketten aufzubauen, eng mit Geschäftspartnern zusammenzuarbeiten und langfristig die soziale Akzeptanz für Ihr Handeln zu sichern. Zudem stärken Sie Ihre Marke und tragen positiv zum Schutz von Menschen und der Umwelt bei.

4. CSRD beachten

Fällt Ihr Unternehmen unter die CSRD, müssen Sie – unabhängig von den Änderungen des LkSG – eine menschenrechtliche Sorgfaltsprüfung durchführen. Stellen Sie sicher, dass Ihre Berichterstattung diese Anforderungen erfüllt und Sie ausreichend Daten zur Verfügung haben, um transparent und umfassend zu berichten.

Unterstützung durch VERSO bei der Umsetzung von LkSG, CSDDD und CSRD

Die Umsetzung von LkSG und CSDDD stellt viele Unternehmen vor Herausforderungen. Der VERSO Supply Chain Hub bietet eine umfassende Lösung, um diese Anforderungen effizient zu bewältigen. Die Plattform ermöglicht eine automatisierte Risikoanalyse der gesamten Lieferantenbasis, unterstützt das Einholen von Self-Assessments und sorgt für die Transparenz entlang der gesamten Lieferkette. Unternehmen können damit sowohl den Vorgaben des LkSG als auch der CSDDD nachkommen. Mit dem ESG Hub bietet VERSO darüber hinaus die Möglichkeit, CSRD-konforme Nachhaltigkeitsberichte zu erstellen.

* Bei diesen Informationen handelt es sich um redaktionell zusammengefassten Content, der nicht als Rechtsberatung zu verstehen ist. VERSO übernimmt keine Haftung. 

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Blog Fahrradbranche Lieferkette
09.09.2024

Compliance in the supply chain: How the bicycle industry is mastering the task

Sustainability regulatory obligations are increasing and compliance in the supply chain is becoming ever more important. Read our article to find out how companies fullfil the ESG requirements for the supply chain and how VERSO specifically supports the bicycle industry in this task.

The economy is undergoing a profound change. More and more companies are integrating sustainability into their business models. This topic is also becoming increasingly important in the bicycle industry – especially in relation to the supply chain, as this is where the greatest risks and the greatest impact of bicycle manufacturers lie.

Two factors play a key role. Firstly, many companies are launching sustainable initiatives to improve their environmental footprint. This enables them to generate business value and Competitive advantages.

On the other hand, regulatory pressure is growing – including throughtheCSRD reporting obligation, the CO2-border-adjustment mechanism CBAM and the EUDR regulation for deforestation-free supply chains. Compliance with sustainability requirements is becoming mandatory.

CSRD, EUDR and CBAM: New requirements for compliance in the supply chain

There are numerous new requirements in the area of sustainability that also affect the bicycle industry. The CSRD, the EU directive on sustainability reporting, plays a major role. Companies have to provide extensive ESG information – and not only consider their own company, but also the supply chain. We have summarised what exactly is required in our blog post „CSRD and the supply chain”. However, the industry is also confronted with new obligations arising from the use of certain raw materials. For example, companies are subject to the EUDR because rubber is used for bicycle tyres. By using CO2-intensive materials such as aluminium or steel, companies may also be affected by CBAM. Both regulations include an assessment of certain raw materials as well as a documentation and reporting obligation. Those who create transparency here and thus address the risks identified have created the basis for fulfilling almost all requirements and compliance in the supply chain.

Compliance in the supply chain: the challenge of a complex supply chain

Cycling is – apart from walking – the most environmentally friendly form of transport: emission-free, quiet, efficient and climate-friendly. However, this only applies to pedalling. When it comes to the production of bicycles, especially e-bikes, the balance is somewhat different.

In addition to emissions – including CO2-intensive materials – the use of high-risk materials also plays a role. “Raw materials for motors, electronics and batteries are associated with major sustainability risks,” explains Klaus Wiesen, Head of Sustainable Supply Chain at VERSO. In addition, the bicycle industry often has complex supply chains. This makes it all the more important to create transparency with regard to these issues and reduce risks.

The complexity of the supply chain results from the large number of players involved in the production of the numerous components of a bicycle or e-bike. These players are distributed internationally, which results in different framework conditions and long transport routes.

Compared to conventional bicycles, e-bikes bring additional challenges. New technologies and raw materials for the drive and battery have become relevant in production. Here, bicycle manufacturers are competing with industries such as the IT sector, with which they previously had little contact.

CSRD and supply chain: these disclosures are required

The CSRD obliges companies to provide extensive information on the supply chain. Find out what information is required and what opportunities and risks arise from the EU directive.

The growing importance of transparency and data management

“Transparency in the supply chain is the key to complying with current and future regulations,” emphasises Klaus Wiesen. Many VERSO customers have voluntarily established corresponding processes before they are obliged to do so by regulations such as the Supply Chain Act (LkSG).

Riese Müller is a pioneer in the bicycle industry and aims to be the most sustainable company in the e-bike sector by 2025. With the VERSO Supply Chain Hub the company creates the necessary transparency in the supply chain and promotes its suppliers in terms of sustainability. Riese Müller is also improving risk management and supply chain mapping to ensure compliance in the supply chain.

However, not all companies in the bicycle industry are that advanced. A key problem is the collection and management of data along the supply chain. Smaller manufacturers in particular have some catching up to do.

“Many companies have hardly collected any structured data, which now presents them with considerable challenges if they want to fulfil the requirements of CSRD, CBAM, EUDR and other regulations,” says Klaus Wiesen. This is where VERSO comes in and offers solutions to support companies in realigning their processes and fulfilling the requirements.

Compliance in the supply chain: benefiting from the network

VERSO is the bicycle industry’s leading platform for sustainability in the supply chain. Their customers include German companies such as Riese Müller as well as international manufacturers – for example from the Netherlands, Switzerland and the USA.

“As there is a large overlap in the supplier base in the bicycle industry, our customers benefit from the networks created and stored in our software,” explains Klaus Wiesen. All customers also benefit from learning effects from previous projects. VERSO integrates new regulations into its software at an early stage to ensure future compliance in the supply chain.

EUDR: Everything you need to know

The EU regulation for deforestation-free supply chains (EUDR) aims to prevent the ongoing deforestation of forests. In our article, we answer the most important questions about the EUDR.

Leveraging supply chain ompliance as a chance for the bicycle industry

The regulations are not only associated with additional tasks. They also open up new opportunities for companies.

One example is risk management. Companies in the bicycle industry have suffered particularly badly from supply bottlenecks in the past. Resilience in the supply chain has therefore become an important issue. By identifying risks (e.g. political instability, natural disasters or human rights violations), a company can take measures to minimize or avoid the impact of these risks. This ensures robust supply chains.

Bicycle manufacturers’ customers often attach great importance to sustainability. Those who fulfill the compliance requirements show that their company takes responsibility for ethical and environmentally friendly standards in the supply chain. This creates trust, provides a competitive advantage and contributes to the long-term success and good reputation of the brand.

Avoiding reputational damage and penalties also plays a role. Companies that do not fulfill their regulatory obligations must expect sanctions. We have summarised possible penalties in the blog post Sanctions at a glance: The cost of mistakes in reporting and implementing sustainability” for an easy overview.

Holistic sustainability management at VERSO

In order to fulfill the requirements, companies should prepare for the new regulations at an early stage. Thanks to our expertise in the bicycle industry (among others) VERSO is the ideal partner. “With the VERSO Supply Chain Hub we have been supporting our customers for years with transparency in the supply chain and the fulfillment of their due diligence obligations. Our software solution enables optimized preparation for current and future regulations,’ emphasizes Klaus Wiesen.

The supply chain harbors the greatest risks and has the greatest impact in the bicycle industry. However, a holistic view of a company is necessary, particularly with regard to CSRD. This includes the upstream and downstream value chain as well as the company’s own business activities. VERSO offers an all-in-one solution here.

With the VERSO ESG Hub you can collect all relevant data and create a meaningful sustainability report. With the Climate Hub the corporate carbon footprint is calculated and a climate strategy is mapped. The VERSO sustainability experts will support you throughout the entire process. Furthermore, you can gain additional know-how about sustainability in our VERSO Academy courses.

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Earth Overshoot Day
18.07.2024

Earth Overshoot Day:
3 tips for sustainable resource management

Earth Overshoot Day marks the day on which we humans have used up all the natural resources we are entitled to for the year. Earth Overshoot Day shows us that we must take action! In this blog post, you will find lots of information about Earth Overshoot Day as well as three tips for more sustainable resource management in your company.

Let’s imagine that: At the beginning of August, we have already spent our entire annual salary.
We should now be planning our big summer vacation – but no, there’s not a single cent left.
From now on, we’ll have to live on credit and somehow get by until the end of the year.
Not a nice idea, is it?
The scary thing is: This is exactly how we are treating our planetary resources – and this is what Earth Overshoot Day stands for.
In 2024, Earth Overshoot Day falls on August 1.
All the natural resources that we humans are actually entitled to this year have been used up.
From this day onwards, we will be living at the expense of the future – for another 5 months.
A bitter day?
Absolutely, there’s no denying it.
But it doesn’t help to bury our heads in the sand.
Let’s use the day as a reminder: let’s act now and push Earth Overshoot Day as far back as possible!
Following the information about Earth Overshoot Day, this blog post therefore contains three tips on how you can make your company’s resource management more sustainable.
These simple measures, which every company can implement, actively contribute to environmental and climate protection.  

Definition: What is Earth Overshoot Day?

Earth Overshoot Day has been calculated since 1971.
In German, it is also known as Earth Overshoot Day or World Exhaustion Day.
It marks the date on which humanity’s demand for ecological resources and services in one year exceeds what the earth can regenerate in that year.
This is how the WWF describes it, for example.
The overshoot days are calculated globally and nationally – the total global consumption of resources is used or the consumption of a specific country is extrapolated to the global availability of resources.
The calculations for the overshoot days are based on the concept of the ecological footprint.
It describes the biologically productive area on earth that is necessary to enable a person’s lifestyle and standard of living.
In short, it documents how much nature we have and how much we need.
Earth Overshoot Day is calculated by the Footprint Data Foundation, York University and the Global Footprint Network.

Why is sustainability important for your company?

Sustainability is becoming increasingly important – not only for private individuals, but also for companies.
We use facts and figures from the year 2024 to show why you should not view sustainability as a mere compulsory exercise.

Earth Overshoot Day earlier and earlier

It’s no big surprise: Earth Overshoot Day is always earlier, and it has steadily moved forward over the past 50 years.
Since the 2010s, however, it has settled around the beginning of August.

Der Earth Overshoot Day, auf deutsch auch Erdüberlastungstag oder Welterschöpfungstag genannt, fällt 2024 auf den 1. August. Der Tag zeigt, wann wir Menschen alle natürlichen Ressourcen, die uns für dieses Jahr zur Verfügung stehen, aufgebraucht haben. Er ist seit 1971 kontinuierlich früher. © Global Footprint Network www.footprintnetwork.org

It all started in 1971: the first Earth Overshoot Day came as a worrying Christmas present under the Christmas tree, so to speak.
It fell on December 25, but at least we were still almost on target.
However, the consumption of resources continued to increase and so did Earth Overshoot Day.
As early as 1974, it moved to November, from 1987 to October and in 1999 it was in September for the first time.
Since 2005, Earth Overshoot Day has been in August and is steadily approaching July.
In 2018 and 2022, Earth Overshoot Day was already on August 1, the earliest date to date.
Each time it was a little later the following year.
In 2024, it will fall on August 1 for the third time.
The coronavirus pandemic and specifically the year 2020 represent a notable break in the statistics.
Global lockdowns and restrictions, the decline in production and transportation had a drastic impact on people and the economy.
But energy and resource consumption and CO2 emissions also fell significantly and the Earth Overshoot Day slipped back to August 16.
However, the effect did not last long and was no longer strongly felt the following year.
If you follow the development of Earth Overshoot Day closely, you will have noticed the fluctuations.
From time to time the day is later than in the previous year or it is adjusted retrospectively.
This can also be related to optimizations in resource consumption.
However, the reasons are usually more precise calculation methods and improved data sets.

CSRD: New requirements for sustainability reports

As part of the Green Deal, the EU is driving forward numerous measures for sustainable transformation – including the CSRD, the Corporate Sustainability Reporting Directive.
You can find all the details in our factsheet.

Overshoot Day for Germany

Calculated for Germany alone, Overshoot Day is even earlier.
In 2024, it already fell on May 2.
This means that if every country consumed resources like we do in Germany, everything the planet can offer and regenerate would already be used up by that day.
In other words, if everyone lived like we do, we would need three Earths.
Compared to previous years, not much has changed with regard to Germany’s Overshoot Day.
It is consistently at the beginning of May – except for the outlier in 2020 due to coronavirus.
So we haven’t got worse in Germany, but we haven’t really improved either.

Der Country Overshoot Day für Deutschland ist 2024 auf den 2. Mai gefallen. Würden alle Menschen auf der so leben wie wir in Deutschland, wären an diesem Tag alle natürlichen Ressourcen, die uns eigentlich zur Verfügung stehen, aufgebraucht. Das bedeutet: Wir bräuchten drei Erden. © Global Footprint Network www.footprintnetwork.org

However, it is also worth taking a look at other countries for comparison.
The three earliest Country Overshoot Days in 2024 were in:

  • Qatar: February 11
  • Luxembourg; February 20
  • United Arab Emirates: March 4

The three countries for which the respective Country Overshoot Day was calculated for the latest date are:

  • Guinea: December 27
  • Moldova: December 28
  • Kyrgyzstan: December 30

And to conclude the comparison, let’s take a look at three G12 countries:

  • USA: March 14
  • France: May 7
  • China: June 1

 

What Earth Overshoot Day means for your company

Earth Overshoot Day is first and foremost a wake-up call to humanity.
The initiators want to show that our actions can lead to unpleasant consequences.
And these consequences will also be felt by companies, or are already being felt.
One example is extreme weather events such as droughts or floods, which are occurring more frequently and more intensively as a result of climate change.
They show how vulnerable global supply chains are.
The consequences are often crop failures, shortages of raw materials or blocked transport routes.
All of this is already leading to bottlenecks in supply and production – and the trend is currently increasing rather than decreasing.

Practical guide to CSRD

Our practical guide, including a checklist, will help you prepare for CSRD reporting.
Find out what challenges there are and how you can overcome them.

3 tips for sustainable resource management in your company

Resource consumption affects us all.
Even as private individuals, we can make a difference.
The WWF lists various ways for end consumers to live more sustainably and thus push back the date of World Exhaustion Day.
“Buy green, consume less and eat less meat” is the succinct but effective recommendation for private individuals.
However, one of the biggest levers for saving resources worldwide is the economy.
Anyone who now thinks that sustainability is just something for a clear conscience or regulatory reporting obligations is mistaken: sustainable management brings business value, creates competitive advantages and strengthens the future viability and resilience of companies.
Many measures can save you money.
These three tips will help you get closer to sustainable resource management:  

The three big Rs – Reduce, Reuse, Recycle

One of the most effective methods for establishing sustainable resource management in a company is the circular economy.
It starts with the big three Rs: Reduce, Reuse, Recycle.
It is about reducing the use of resources and materials, reusing products and reusing the materials from one product in another product.
One approach is an internal recycling process in which production waste is collected, processed and reused.
This can significantly reduce waste and thus the amount of raw materials required.
In addition, recycled or bio-based materials can be ordered from suppliers.
Resources can also be saved during shipping.
For example, packaging that can be reused.
But also in transport itself.
There are special pooling systems for pallet cages and Euro pallets – a reusable system for load carriers, so to speak.
Empty runs by truck should also be avoided.
But savings can also be made quite simply in the office.
For example, in water or energy consumption.
Refillable printer cartridges produce less waste.
Or you can switch completely to a paperless office.
Incidentally, the three big Rs are just the beginning: the circular economy goes a big step further and focuses on the 10 Rs. The concept and many other interesting facts about the circular economy can be found in this blog post “How the circular economy works and what it can achieve in Germany“.  

Save energy and use it more efficiently

Energy is an important resource for every company – which is why it makes sense to start here.
The range of measures to save energy and use it efficiently is very broad.
It starts with obvious and simple steps:

  • Use LED instead of halogen lamps
  • Install motion detectors for the lighting
  • Adjusting the brightness of screens downwards
  • Use laptops instead of desktop computers

You should also take a systematic approach here – an energy management system in accordance with ISO 50001, for example, is helpful.
Although individual measures can lead to savings, they can also cause problems in other areas.
Therefore, look at the big picture and start looking for energy guzzlers.
Air conditioning, heating and ventilation often offer opportunities for optimization.
Important: Also check whether there is a state subsidy for the replacement.
Or have you ever thought about hosting your website?
With tools such as the Website Carbon Calculator, you can calculate the CO2 footprint of your company website in no time at all.
In the blog post “How to communicate your sustainability on your website“, we provide simple tips under point 6 on how to make your website more sustainable without any design or coding knowledge.
Another way to save energy: your company can become an electricity producer itself.
Photovoltaic systems are not only suitable for building roofs, but also for parking lots.
Not only do you generate green electricity and cover part of your energy requirements, you also create a source of shade.
You can also participate in local wind farms.  

Sensitize and train employees

Employees are the key to a company’s success.
This applies not only to purely financial success, but also to the implementation of ESG initiatives.
It is therefore important to sensitize the entire team to sustainable action and train them accordingly.
This firmly anchors sustainability in the corporate culture.
During workshops, you should emphasize waste separation and avoidance and give tips on saving water and energy.
If everyone, or at least many people, adapt their behavior a little, a lot can be achieved.
One question that everyone should ask themselves, for example: Do I really need to print out this document or will it suffice in digital form?
One major lever is the transport sector.
Switch to public transport for business trips within Germany.
At the same time, your company can reward environmentally friendly behavior – for example with rental bikes or a subsidy for public transport.  

Is your company doing enough in terms of sustainability?
Here’s how to find out

A sustainability report is a good measurement tool for companies in terms of ESG and implementation.
It allows you to determine the status quo and see your development over the years.
On this basis, you can develop or adapt measures and targets.
The CSRD reporting obligation may even mean that your company is obliged to prepare a sustainability report.
VERSO provides you with comprehensive support for this task.
With the VERSO ESG Hub, you can collect all relevant data and create a meaningful sustainability report.
The Climate Hub also calculates the corporate carbon footprint. And the VERSO Sustainability Experts will support you throughout the entire process. Would you like to acquire even more knowledge about ESG and sustainability yourself? Then it’s worth visiting our VERSO Academy. In the online courses, you and your colleagues can learn all about sustainability in the company – now with a brand new course for specialists and managers.  

 

* This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

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  • Pragmatic all-in-one solution for ESG reporting, climate and supply chain management
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  • Developed with expertise from 12+ years of sustainability management
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Nuvia Maslo im neuen Kurs der VERSO Academy, Fit for Sustainability
09.07.2024

What specialists and managers should know about sustainability

ESG regulations, sanctions and real environmental threats are putting companies under increasing pressure. This means that sustainability must now be implemented in companies.

And in such a way that it does not become a bureaucratic monster. Because sustainability is not a spoilsport, but can create real business value. Read here to find out how this works and what you need to know as a specialist or manager.

Sustainability starts with specialists and managers

Sustainability ambitions must come from the management level.
Then it can create real business value with competitive advantages, cost savings and resilience.
At management level, the importance of the topic must be understood, priorities set and strategic decisions made for sustainability.
For specialists and managers, this means getting to grips with the topic of sustainability, acquiring knowledge and at least understanding the basics.
We give you 4 tips to help you successfully drive forward the sustainable transformation in your company.

Training tip: The new ESG course “Fit for Sustainability”

Learn everything that specialists and managers need to know about sustainability in our “Fit for Sustainability” online course.
The early bird phase is currently still running – register here for a 25% voucher!

4 tips for starting the sustainable transformation

1. find out about the role of companies in sustainability

Climate change is real.
The first effects are already being felt.
Extreme weather events are more extreme and occur more frequently.
There is a lot to be done to ensure that this planet remains liveable for future generations.
But what role do companies play in this?
Where are the most serious problems and how can we solve them?
You should be clear about this before you put sustainability on the agenda.
Because only then will you be able to win over your employees to the issue and only then will you have the know-how to implement measures with real impact.

2. familiarize yourself with the most important ESG regulations

With the Green Deal, the EU is bringing many laws and directives to the table that oblige companies to be more sustainable.
These include the CSRD reporting obligation, the CSDDD supply chain law and special regulations such as the EU Taxonomy, the SFDR regulation for the financial sector, the CBAM carbon border adjustment mechanism and the EUDR deforestation regulation.
In addition, there are also laws in Germany that require companies to deal with sustainability at all ESG levels, such as the German Supply Chain Act LkSG.
Of course, you don’t need to know all the directives and laws in detail.
However, an overview of the implementation deadlines, what needs to be done and which roles are required in the company is essential.

3. communicate sustainability transparently and without greenwashing

Regardless of whether you have to publish a sustainability report due to the CSRD obligation or would like to report on your sustainability activities voluntarily: Communicating sustainability is a fine line between correct and misleading.
What is communicated can quickly verge on greenwashing, and the CSRD also requires very comprehensive statements that have to be watertight.
Successful and legally compliant communication requires a good understanding of sustainability, of the company’s own activities, of sustainability communication and of the regulatory framework.

4. develop a sustainability strategy and use it to leverage potential for your company

The topic of sustainability and the associated laws and guidelines are often referred to as a “bureaucracy monster”.
But that doesn’t have to be the case: take a strategic approach to the topic and integrate sustainability firmly into your corporate strategy.
This will open up real opportunities for your company.
Because sustainable management makes your company resilient and fit for the future and opens up new business models and competitive advantages.

How do you get started? With knowledge building!

Now it’s time to get started!
At the VERSO Academy, we have the ideal course for you to gain knowledge on all these topics: You will efficiently learn everything important that specialists and managers should know about sustainability in the shortest possible time – tailored to your needs and potential.
After the training course, you can get started with the sustainable transformation straight away. Sounds good?
Get the
25 % Early bird discount – redeemable as soon as the course is bookable:

* This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

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Sign up and receive regular news about:

  • Pragmatic all-in-one solution for ESG reporting, climate and supply chain management
  • Individual advice from the VERSO experts
  • Developed with expertise from 12+ years of sustainability management
  • Trusted by 250+ customers

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CSRD und Lieferkette - Was der Einkauf beachten muss
17.06.2024

CSRD and supply chain: What purchasing needs to consider

The CSRD with its ESRS standards is not only a lot of work, it also has a major impact on companies: This is because you have to make extensive ESG disclosures – and not only look at your own company, but also at the supply chain. Read here what purchasing departments need to consider and what opportunities and risks arise from the EU directive.

The CSRD (Corporate Sustainability Reporting Directive) has applied to the first companies since January 2024, and others are gradually being added.
Ultimately, around 50,000 companies in Europe will be obliged to publish a report with comprehensive information on ESG (environmental, social and governance) issues.
The ESRS, the European Sustainability Reporting Standards, were also introduced with the CSRD.
For the first time in the EU, they provide a standardized framework for the preparation of a sustainability report – in simple terms: which ESG information is required and in what form it must be reported.
It is important to note that the reporting obligation not only relates to the company itself, but also extends to the entire value chain. In this blog post, we look at the upstream value chain – i.e. the supply chain.
And this is where companies subject to CSRD reporting requirements can quickly run into problems: they need a lot of information from their suppliers and the data situation is often inadequate – according to the Bertelsmann Stiftung’s Sustainability Transformation Monitor 2024.
With VERSO, you can master this challenge.
Our Supply Chain Hub creates transparency in the supply chain and enables you to analyze risks, develop targeted measures and comply with reporting obligations.
We will now take a closer look at these disclosure requirements within the framework of the CSRD and the impact on purchasing.

CSRD and supply chain: What needs to be reported?

The CSRD demands a lot from companies: the ESRS comprises around 1150 data points and over 100 of these relate to the supply chain.
Purchasing is therefore an important player in the reporting process.
The information involved can be roughly summarized as follows: The ESG report must contain information on environmental and social IROs (impacts, risks and opportunities) in the supply chain as well as measures related to the IROs.
If your company is affected by the LkSG, you will probably recognize some disclosure requirements and can realize synergies: This is because some BAFA requirements overlap with the ESRS.

Bei den ESRS gibt es sektorunabhängige Standards und sektorspezifische Standards. Die Sektorunabhängigen Standards teilen sich in die Bereiche Allgemeines, Umwelt, Soziales und Unternehmensführung. Die Allgemeinen Standards sind verpflcihtend für alle Unternehmen, die Themenstandards sind je nach doppelter Wesentlichkeit berichtspflichtig oder nicht.

But what does this mean in detail?
To answer this question, let’s take a closer look at some ESRS standards and clarify how they relate to the supply chain.  

ESRS E1 – the climate protection standard

The name says it all: ESRS E1 is about climate protection – in your company and in your supply chain. Your company must therefore not only disclose its own greenhouse gas emissions, but also the CO2 emissions in the upstream and downstream value chain – i.e. in Scope 3. Incidentally, the majority of companies generate the most emissions in this category.
E1 also requires companies to set themselves climate targets.
Transparency about the targets and measures of their own suppliers is crucial in this respect.  

ESRS E5 – Resource utilization and circular economy

The supply chain naturally plays an important role in ESRS E5, as many resources are obtained or processed here.
For example, the CSRD asks for:

  • Measures to avoid the generation of waste
  • Resource utilization
  • Measures to promote the circular economy
  • Cooperation or initiatives to improve the recyclability of products and materials

 

ESRS S2 – Workforce in the value chain

The fact that the ESRS S2 also relates to the supply chain and entails disclosure obligations is already in the name, so to speak.
Among other things, the CSRD is concerned here with how your company fulfills the due diligence obligations.
This means How do you
Ensure compliance with human rights, labor standards andgood working conditions at suppliers ?The CSRD does not require much more than the LkSG. You should also show whether there is a complaints management or whistleblower system for workers in the supply chain, how you handle complaints and resolve any problems raised.  

ESRS S3 – Affected communities

The ESRS S3 addresses the impacts that your company’s operations, products or services, and upstream and downstream value chains have on “affected communities”.
This refers to people and groups who live or work in the same area as a company.
The standard also explicitly refers to impacts on indigenous peoples.
Impacts can arise, for example, from truck transportation, the extraction of raw materials or controversial land use.  

ESRS G1 – Company policy

With regard to the supply chain, your company must
ESRS G1, your company must disclose the following:

  • Management of relationships with suppliers, payment practices, in particular with regard to late payments to small and medium-sized enterprises
  • Strategies for detecting and preventing corruption and bribery, including training for suppliers

However, you do not have to provide information on every standard in your CSRD report.
This depends on whether a topic is material for your company.
VERSO offers you an AI-supported materiality analysis here.
In our white paper “All information on the ESRS” you will also find further detailed information on the European standards, in particular on the transition periods.

Is your purchasing department ready for the ESG requirements?

Companies are now affected by a large number of sustainability requirements – and purchasing is no exception.
Use our checklist to find out whether your purchasing organization is optimally prepared for ESG requirements.

CSRD and the supply chain: opportunities and risks for procurement

The CSRD is a major challenge – we can’t hide that and we don’t want to.
With almost 1200 data points, ESRS reporting is a mammoth task.
It is complex and resource-intensive.
But with the right support, you can manage it – we will be happy to assist you with the sustainable transformation.
What’s more, the CSRD doesn’t just end with a sustainability report.
The fact that your company is systematically addressing the issue of sustainability opens up great opportunities.
The double materiality analysis and reporting will make opportunities and risks in the supply chain more visible.
This enables your company to address these in a targeted manner.
Sustainability requirements can trigger innovations, such as the use of environmentally friendly materials or the optimization of logistics processes.
Many customers also tell us that the reporting process has enabled them to get to know their suppliers even better.
The increased transparency ensures better and more sustainable supply chain practices.
By working closely together, you strengthen long-term partnerships and thus improve the stability and efficiency of the supply chain.
The reporting process promotes digital development.
Software specialized in CSRD, LkSG and CBAM requirements helps monitor the supply chain and ensures compliance with legal requirements.
It can collect and process the necessary large volumes of data.

Risk management for sustainability in the supply chain

In our white paper, you will learn how to implement the requirements of the German Supply Chain Act (LkSG) in a future-proof manner through digitalization and collaboration.

How does CSRD influence purchasing and the supply chain?

CSRD has a major impact on purchasing and requires a high degree of transparency and responsibility.
Your company must collect and provide detailed information and comply with legal due diligence obligations in relation to environmental and social standards.
This includes a new assessment in the purchasing process to ensure that suppliers comply with sustainability requirements.
So you need to be even more careful about who your company does business with.
Teamwork is also required when it comes to climate change.
Climate change and extreme weather will affect us all.
That’s why we need to act together to slow down climate change and reduce its impact.
Climate protection measures must not stop at the gates of your own company: Together with your suppliers, you can implement initiatives that help reduce greenhouse gas emissions.
You can find specific tips for decarbonizing your supply chain in the blog post “Why is climate protection in the supply chain relevant?”.  

How VERSO supports you in implementing the CSRD

VERSO offers you the all-in-one package for implementing the CSRD.
The EU directive makes the topic of sustainability in the supply chain even more relevant, as companies must now also report robustly on sustainability activities in the supply chain.
The VERSO Supply Chain Hub helps procurement to record the necessary data in the supply chain, monitor suppliers and provide the required reporting key figures with minimal effort.
We round off the package for implementing your CSRD obligations with additional software solutions and consulting services.
With VERSO, you can carry out an AI-supported materiality analysis.
In the ESG Hub, you collect all relevant data and create a meaningful sustainability report.
The Climate Hub supports you with your carbon footprint and decarbonization strategy.
And in the VERSO Academy, you will acquire the necessary knowledge about CSRD and ESRS.

* This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.

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Sign up and receive regular news about:

  • Pragmatic all-in-one solution for ESG reporting, climate and supply chain management
  • Individual advice from the VERSO experts
  • Developed with expertise from 12+ years of sustainability management
  • Trusted by 250+ customers

Get to know the software!