ESG in trade is here to stay and will increase

For the moment there are four supply chain ESG (Environment, Social Protection and Governance) regulations in operations right now, UFLPA in U.S and the EU Carbon Border Adjustment Mechanism (CBAM) are the two most advanced for now – and also covering and impacting many companies in internationa trade. There is more to come.

The EU Deforestation regulation (EUDR) is postponed for full implementation another 15 months, but it will come. We are also following another ten regulations in five markets, where legislation has been proposed and passed in the decision-making process.

In addition, we will see more and more categories added to these regulations.

The USCBP enforcement of UFLPA (forced labor) has increased dramatically during 2025. This is for real, and all companies need to address trade compliance all through the supply chain – all tiers – in a new way. You need to know your product, all elements and components of it. You need to know allnof your supply, all stakeholders. You need to own your own data for all steps of the process.

ESG in trade is not going away. It is time for companies to take strategic decisions on how to handle this now, tomorrow and for tomorrow.