This has left many procurement professionals in the EU questioning future regulatory expectations, particularly with the possible renegotiation of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) originally set in place in 2024.

The EU’s ESG regulations present significant challenges and opportunities for procurement leaders. Procurement teams are increasingly expected to embed ESG criteria into supplier evaluations, risk management and contract negotiations to ensure compliance with the expanding regulatory requirements.

The shift in reporting requirements will necessitate greater collaboration with suppliers to gather validated sustainability data, particularly for Scope 3 emissions which span the full value chain. Procurement leaders should anticipate adapting supplier contracts to incorporate ESG requirements and prioritise working with vendors who demonstrate progress toward climate and social governance objectives.

Efforts by Europe’s corporate reporting body, EFRAG, are focused on refining the 12 European Sustainability Reporting Standards (ESRS) to simplify compliance and reduce the data points companies need to report.

The post How Procurement can Navigate EU ESG Regulation Changes first appeared on ESG Foundation.

The post How Procurement can Navigate EU ESG Regulation Changes appeared first on ESG Foundation.