If you choose to buy a sustainable product at the supermarket, or invest in a sustainable portfolio at your bank, how far does that sustainability reach? Does the product’s “sustainable” label account for the environmental and labour costs where the raw materials were extracted? Does the portfolio include renewable energy in countries where the investment is needed most?
In the EU, whether you are an individual or represent a company or financial institution, these questions are governed by the bloc’s non-financial reporting (NFR) regulations. The latest ones include the European Sustainable Reporting Standards (ESRS), which are gradually coming into force through 2029. The ESRS set out reporting standards and requirements, while the Corporate Sustainability Reporting Directive (CSRD) determines which companies these standards apply to, to what extent, and when.
These EU regulations also have strong implications for the Majority World, the countries and territories outside Europe and North America where most people live, at a time when global, systemic policy effects are more important than ever. As supply chains become longer and more interconnected, and as communities involved in them confront the fragilities of economic, political and climate shifts, the regulations that govern the sustainability of these chains and that enable or prohibit participation in them must be crafted and implemented to minimise harm to the most vulnerable.
