International rules for due diligence and traceability in chains: what are the impacts for Brazil?


Valor Econômico, Caio Borges e Victoriana Gonzaga in 21/06/2022
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Among the various topics on the ESG agenda, the search for sustainability in supply and production chains has been widely discussed. The failure to ensure the extension of sustainability standards to successive levels of the supply chain increasingly exposes companies to a series of social, financial and legal consequences.

In a lawsuit that began to be judged in June, retailer Casino, which controls Grupo Pão de Açúcar in Brazil, was sued by Brazilian and European civil society entities in French justice. They allege that the company has failed to ensure that its suppliers comply with environmental and social rules.

Production chains are also central to the climate agenda. There is a wave of emission reduction commitments and efforts to achieve carbon neutrality. However, around 80-90% of corporate emissions are concentrated in the so-called “Scope 3”, which comprises emissions from post-consumption production chains. Many of these corporate and international commitments do not, however, cover Scope 3 emissions.


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