WJI 2030 strives to be at the forefront of regulatory compliance in sustainability matters. As such, we will provide regular updates in our newsletter, focusing on regulatory and legal updates in these fields. The information provided is however of a general nature and does not constitute individualized legal advice. It intends to highlight key developments but is not exhaustive. Members of the WJI 2030 and readers of this newsletter should seek their own legal advise or consult with legal counsel to understand the specific regulations that apply to them.
In This Issue:
- Continued Push for Mandatory Reporting
- Mandatory Supply Chain Due Diligence
- Focus on Environmental Impact Management
- Greater Consumer Protection and Information
As the sustainability landscape rapidly evolves, companies in the watch and jewellery sector are facing increased regulatory pressure to monitor their social and environmental impacts. Transparency, accountability, and responsible business practices are becoming essential, particularly concerning supply chains. This newsletter provides an overview of some significant EU regulatory trends over the past six months.
1. Continued Push for Mandatory Reporting
The trend toward mandatory sustainability reporting continues as regulators push for global standards. This effort aims to harmonize reporting frameworks and enhance transparency.
- Corporate Sustainability Reporting Directive (CSRD): In effect since earlier this year, the CSRD mandates in-scope companies to monitor and report on sustainability risks and impacts. It is now being transposed by EU Member States into their national laws. It seeks to improve and standardize sustainability reporting across the EU to enhance transparency for investors.
- [Read more here]
For a useful tool, see the Global Baselines and ESG Standards: The ESG Book Policy Digest outlines the key global developments surrounding the EU CSRD and the International Sustainability Standards Board (ISSB) standards.
2. Mandatory Supply Chain Due Diligence
Supply chain due diligence rules are tightening worldwide, and companies must now take responsibility for their global value chains.
- Corporate Sustainability Due Diligence Directive (CSDDD): Effective from July 2024, this directive requires in-scope companies, including non-EU entities, to establish procedures that mitigate adverse human rights and environmental impacts throughout their supply chains. Full application begins on 26 July 2029.
- [Learn more here]
- Forced Labour Regulation: Adopted in April 2024, this regulation prohibits the sale, import, and export of goods made using forced labor within the EU market. Member States and the European Commission will investigate potential violations, and any non-compliant goods will be removed from the market.
- [Read more here]
3. Focus on Environmental Impact Management
Environmental regulations are becoming stricter, particularly in the EU, focusing on product sustainability and circularity.
- Eco-design for Sustainable Products Regulation (ESPR): Effective from July 2024, the ESPR introduces sustainability requirements for nearly all products sold in the EU. Companies must ensure their products meet these standards across the entire life cycle. [Learn more here]
- Digital Product Passport (DPP): The ESPR mandates that products carry a DPP, a digital record detailing the product’s entire value chain, including its materials and environmental impact.
- [Learn more here]
- EU Packaging and Waste Regulation (PPWR): Adopted in April 2024, this regulation aims to reduce plastic waste and harmonize packaging rules to promote a circular economy.
- [Read more here]
- EU Deforestation Regulation: Effective since June 2023, this regulation ensures products entering the EU do not contribute to deforestation. However, enforcement for large enterprises has been delayed until December 2025, with small businesses given until June 2026 to comply.
- [Read more here]
4. Greater Consumer Protection and Information
Consumers are demanding more transparency, and regulations are catching up.
- Green Claims Directive (GCD): Expected to be published in Q4 2024, this directive will establish verification rules for environmental claims, aiming to prevent vague or misleading statements about a company’s environmental impact.
- Application expected in 2028.
- [Learn more here]
- Unfair Commercial Practices Directive (UCPD): A revised UCPD introduces stricter criteria for misleading claims. These changes will be implemented in late 2026.
- [Learn more here]