The European Union is considering creating regulations for the cocoa industry, where importing companies need to exercise due diligence regarding their supply chains.
This news came out after the European Cocoa Association's Sustainability Manager announced at this year's Chocoa event that the EU will publish a framework report in May. If both the European Parliament and the European Commision agree with this, regulations can be launched as soon as 2021 and in force by 2022.
The interesting part here is that the regulation will most likely be based on the EU Timber Regulation, on which ChainPoint has reported many times before. The EUTR was also the basis of new regulations regarding conflict minerals that will be launched at the start of 2021.
Timber as a blueprint
This means that by 2022, there will be three different EU Regulations that are all very similar. This gives companies time to prepare, where companies in the mineral and cocoa industry can learn from what has been happening in the timber industry for years. Even though the three different industries may differ, the regulations all require importing companies to exercise due diligence as a first gatekeeper at the borders of Europe. The regulations require companies to do their homework by collecting supply chain information and mitigate risks.
For that reason, we highly recommend our timber webinar. In this video we do not only explain the EUTR, but also give a live demo of our timber due diligence which is used in a day-to-day situation. This video can be very useful for the mineral and cocoa industry, as well as traders and importers of other commodities who might have to exercise due diligence in the future.