Tiếng Việt
Policy update
Recent developments in the field of sustainability, focusing on sustainable supply chain of forest and “deforestation-driven” agricultural products
Vietnam update
Situational analysis and development about sustainability. Remark on what to watch for to ensure compliance with the due diligence obligations from both Vietnam and the EU side
Commodities watch
Trends and movements about the sustainability of traded agricultural and forest commodities globally which could potentially cause deforestation
Supply Chain Due Diligence
Supply chain due diligence refers to the processes businesses undertake to identify, prevent, mitigate, and account for potential adverse impacts in their supply chains, particularly concerning human rights, environmental sustainability, and ethical sourcing. With increasing regulatory and societal expectations, companies must go beyond transparency and actively ensure responsible practices at every step of the supply chain.
This involves tracking products from origin to final products, ensuring that each stage from raw material sourcing to production and distribution, complies with ethical and legal standards. Tools such as traceability and risk assessments are used to verify supplier compliance and support continuous improvement.
What Companies Need to Know
With rising global expectations, timber companies must go beyond transparency and ensure responsible sourcing throughout their supply chains.
Regulations like the EU Deforestation Regulation (EUDR) and Corporate Sustainability Due Diligence Directive (CSDDD) require businesses to identify, manage, and mitigate environmental and human rights risks. The OECD Guidelines, Accountability Framework (AFi) offer practical steps for doing this effectively.
Due diligence means tracing products to their origin, assessing supplier risks, and verifying compliance. Adopting these practices not only meets legal requirements but also strengthens credibility and market access.
EU Deforestation-free Regulation
EU has recently approved the EU Deforestation-free Regulation which included 7 major commodities: timber, coffee, rubber, soy, palm oil, cattle, and cocoa as having the potential to contribute to deforestation and forest degradation. The regulation aimed to lessen the effects of the EU on global deforestation and forest degradation as well as to encourage the adoption of “deforestation-free” products
Corporate Sustainability Due Diligence
Corporate sustainability due diligence is the process by which companies identify, assess, and address risks to people and the planet within their operations and supply chains.
Rooted in the OECD Due Diligence Guidelines and now mandated by the EU Corporate Sustainability Due Diligence Directive (CSDDD), this approach holds companies accountable for adverse human rights and environmental impacts. It requires integrating responsible business conduct into core management systems, ensuring risks are managed proactively—not reactively.
This section explores how businesses can implement effective due diligence processes to comply with evolving regulations and build more sustainable, resilient supply chains.
Timber Legality
Timber is one of the world’s most valuable forest commodities, with global trade valued at over USD 244 billion in 2019. Yet, 15% to 30% of this trade is estimated to involve illegally harvested wood—rising to 50%–90% in parts of Africa and South America (FAO, 2021).
Illegal logging undermines forest governance, harms local communities, and fuels environmental degradation. To address this, the EU launched the FLEGT Action Plan, including Voluntary Partnership Agreements (VPAs), to promote legal timber through robust supply chain controls.
These initiatives align closely with supply chain due diligence principles, ensuring legality from harvest to final product.
Sustainability Reporting and Disclosure
As sustainability regulations evolve, reporting requirements are becoming more rigorous and aligned globally.
The EU’s Corporate Sustainability Reporting Directive (CSRD) marks a major shift, requiring companies to disclose not only their environmental and social impacts but also their due diligence processes across the value chain.
Alongside frameworks like the ISSB and GRI, CSRD reinforces the link between transparency, accountability, and responsible business conduct.
For companies, this means that effective supply chain and sustainability due diligence—such as those under CSDDD, EUDR are no longer optional but essential to meeting disclosure expectations and stakeholder trust.
“Consumption is the sole end and purpose of all production” – Adam Smith
So let’s consume more wisely and be aware of what we consume for a better world