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Regulatory burden to fall on end customers or impact bottomline

  • 1.  Regulatory burden to fall on end customers or impact bottomline

    Posted 22 days ago
    Edited by Confidence Mafoti 22 days ago

    Earlier this year, the EU issued a new regulation to reduce deforestation and degradation across the consumer products supply chain and the responsibility lies on  the first placer of consumer products on the EU market to conduct due diligence. Will the regulatory burden fall on end consumers in Europe or will it impact the companies’ bottom line and ultimately shareholder value? More so, some industry professionals think the rules will fail to deliver the expected benefits, as it could lead to a two tier system, in which deforestation free goods are shipped to Europe and non compliant items to other regions. 

    Here are 2 interesting articles on the EU Deforestation Regulation which is to be implemented end of 2024.

    https://www.whitecase.com/insight-alert/10-key-things-know-about-new-eu-deforestation-regulation

    https://sustainablefoodbusiness.com/food-industry-eu-anti-deforestation/



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    Confidence Mafoti
    Portfolio Manager
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