Media Coverage
Source: Supply Chain Digital
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Thomas
01.21.25
In a recent interview with Supply Chain Digital, International Trade partner and Global Head of Pillsbury’s Regulatory practice Nancy Fischer discussed the evolving regulatory landscape for global supply chains and the compliance challenges businesses face as regulations have become increasingly stringent.
“The EU Conflict Mineral Regulation, French Duty of Vigilance Law and UK Modern Slavery Act were among the first to impose obligations on companies to address human rights and environmental impacts within their global supply chains,” Fischer said. “While these laws introduced new expectations for corporate responsibility, their scope was relatively narrow, their compliance requirements less stringent and their overall impact limited.”
While the EU is currently leading the regulatory evolution, with two groundbreaking pieces of legislation—the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Deforestation Regulation (EUDR)—the U.S. has also implemented the Uyghur Forced Labor Prevention Act (UFLPA).
“The UFLPA introduces a rebuttable presumption that goods from China’s Xinjiang region involve forced labor, requiring importers to provide clear and convincing evidence to the contrary,” she explained. “This represents a significant shift in how authorities approach supply chain compliance, with enforcement becoming increasingly robust and technology driven.”
Additionally, the complexity of compliance is amplified by intricate global supply chains, where companies must trace raw materials through various intermediaries. Despite these complexities, Fischer warns that, “inaccurate or incomplete reporting could result in the termination of commercial relationships or even contractual disputes, underscoring the need for transparency and proactive risk management.”
“Companies need to provide their suppliers with the guidance and resources necessary to meet regulatory requirements,” she said. “Treating suppliers as partners in compliance, offering training and support to help them align with regulatory standards, is essential for building robust and compliant supply chains.”
“In today’s regulatory environment, compliance is not optional; it is a critical operational requirement,” she concluded.
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