The UK is looking to create a supply chain management law focusing on mitigating deforestation. During the recent London Climate Action Week, the government announced its plans to use existing and new legislation to tackle deforestation. The concept behind the new law is similar to the EU’s deforestation regulation and will require companies in certain industries to trace their supply chains. A press release from the UK government describes the framework:
“Under the proposals UK businesses who trade in commodities sourced from rainforests such as soy, palm oil, cocoa and rubber will need to check that their supply chains are not contributing to illegal deforestation. These products are commonly found in everyday supermarket products including chocolate, cooking oils, shampoo and cosmetics.
UK companies have been at the forefront of global efforts to tackle deforestation within their supply chains, but voluntary action alone cannot tackle this global challenge, and several major supermarkets have been calling for stronger regulation.”
Right now, details are scarce beyond the initial concept. The press release is unclear on whether products contributing to deforestation will face market bans similar to those in the EU. This is likely to have effects beyond the UK. The EU’s deforestation law is the subject of controversy in EU/US relationships. The US is attempting to gain an exemption from the law, allowing any such goods originating in the US to automatically be deemed as not contributing to deforestation. We’ll see if the UK’s law introduces similar friction and if the US will seek an exemption there as well.
Our members can learn more about supply chain management here.
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