The Commission published guidance documents to the regulation and proposed to postpone its entry into application to 30 December 2025.
By Paul A. Davies, Michael D. Green, and James Bee
On 2 October 2024, the European Commission (Commission) adopted a proposal for a one-year delay to the implementation of the European Deforestation Regulation (EUDR), which was set to take effect from December 30, 2024. The Commission noted the proposal is a response to feedback from global partners and
The Private Members Bill, if passed, would establish the UK’s first law mandating business due diligence on human rights and the environment.
By Paul A. Davies, Michael D. Green, and James Bee
On 28 November 2023, Baroness Young of Hornsey (Baroness Young) introduced the Commercial Organisations and Public Authorities Duty (Human Rights and Environment) Bill (the Bill) to the UK House of Lords. The Bill seeks to establish the UK’s first law mandating certain companies to conduct human rights and environmental due diligence, and would also introduce an overarching duty for companies to prevent environmental and human rights abuses within their operations and value chains.
The Bill aims to level the playing field among businesses, provide clarity on legal obligations, and enable a greater level of access to justice. It also aims to align UK law with voluntary international standards, such as the United Nations (UN) Guiding Principles on Business and Human Rights, the Organisation for Economic Co-operation and Development (OECD) Guidelines, and the International Labour Organization (ILO) Multinational Enterprises Guidelines.
The regulation aims to minimise the EU’s contribution to deforestation and forest degradation.
By Paul A. Davies, Michael D. Green, and James Bee
The European Deforestation Regulation (EUDR) entered into force on 29 June 2023, following publication in the Official Journal of the European Union. However, the main requirements and prohibitions of the EUDR will apply from 30 December 2024, 18 months after the entry into force.
The regulation forms part of the European Green Deal (for more information on the Green Deal, refer to Latham’s blog post here), which includes a proposal to ensure EU consumption does not contribute to deforestation and forest degradation. The EUDR will repeal and broaden the scope of the existing EU Timber Regulation.[i]
The adopted position would mean that financial institutions fall under the remit of the regulation, requiring them to conduct additional due diligence on both established and new customers.
By JP Sweny, Michael Green, James Bee, and Vanessa McLellan
On 13 September 2022, the European Parliament voted to adopt its position in relation to the European Commission’s proposed regulation on deforestation-free products. The European Parliament’s position would widen the scope of commodities and products covered by the regulation, and subject financial institutions to additional due diligence requirements to ensure that their activities do not contribute to deforestation.
Consultations are underway on a proposed law to prohibit large UK businesses from using products sourced from illegally deforested lands.
By Paul A. Davies and Michael D. Green
On 25 August 2020, the Department for Environment, Food and Rural Affairs (Defra) launched a consultation on a new law aimed at preventing large companies from using commodities grown on land that has been illegally deforested (known as forest risk commodities). The consultation includes seven questions to assess whether large companies should be obligated to perform due diligence on their supply chains, and whether large companies should be prohibited from using forest risk commodities. Key forest risk commodities include palm oil, cocoa, soy, and rubber.