Several industry leaders are voicing concerns over the EU’s postponed deforestation legislation.
- Nestlé, Ferrero, Unilever, and Mars stress the risks of investment uncertainty due to regulatory delays.
- The postponed policy affects commodities like cocoa and palm oil, crucial to these businesses.
- Heavy lobbying by producer nations has contributed to the EU’s decision to postpone the law.
- Companies urge EU policymakers to preserve the regulatory framework as initially devised.
Nestlé, Ferrero, Unilever, and Mars have united in expressing opposition to the European Union’s decision to delay its deforestation law, previously set for implementation on December 30. The delay introduces significant uncertainty for these companies, which impacts their investment strategies moving forward. With the law aimed at banning the sale of products made from commodities sourced from deforested lands, the stakes are particularly high for food businesses reliant on cocoa, palm oil, rubber, and wood.
This regulatory delay is largely attributed to intense lobbying from major producing countries like Brazil, Indonesia, and Malaysia, which have substantial interests in continuing exports of commodities linked to deforestation. These lobbying efforts have led the European Commission to postpone the policy, leaving businesses in a precarious position regarding their supply chains.
A joint statement by the confectionery giants emphasized the vulnerability of firms dependent on imports of cocoa and rubber, highlighting the challenges of sourcing materials under the shadow of regulatory uncertainty. The postponement has put pressure on supply chains and raised concerns over future sustainable practices.
Francesco Tramontin, Ferrero’s global public affairs vice president, emphasized the importance of avoiding potential revisions to the regulation, noting that keeping the current framework is essential for ongoing preparations and sustainability investments. This sentiment is echoed by Bart Vandewaetere, vice president of ESG engagement at Nestlé Europe, who pointed to significant efforts already made by suppliers in aligning with the law’s provisions.
Previously, large supermarket chains have also called for government action to regulate commodities driving deforestation and to bring national policies in line with the proposed EU regulations. The continued delay represents a setback for these efforts, as companies push for definitive regulatory guidelines to secure the sustainability of their supply chains.
Continuing delays in implementing the EU deforestation law exert pressure on industry leaders to advocate for stable and decisive regulatory action.
