Moody's comment on blocked EU supply chain law & global implications


Earlier this week, EU countries blocked a proposed law requiring large companies to check if their supply chains use forced labour or cause environmental damage.

Vitaliano Tobruk, Director - Industry Practice Lead, Supplier Risk at Moody’s Analytics, gives his views on the implications for supply chains globally.

“Despite the current legislative setback for the EU supply chain law, the focus on human rights and environmental sustainability will inevitably resurface, given the widespread consumer and broader societal support for laws addressing those issues across the EU. However, any new requirements for companies need to be balanced with considerations of implementation costs and feasibility.

“It’s crucial for businesses to take a proactive approach to their supply chain due diligence. Companies that take the initiative to tackle these issues will not only be better prepared for potential future regulations, but also strengthen their risk management strategies and enhance their reputation. In this evolving landscape, proactive responsibility is the key to long-term resilience.”

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