We have been hearing for some time now that companies will need to get ready and prepare for the legal changes that will happen in terms of sustainability reporting.
Well, we have some bad news. And some good, too!
Bad news is that we are already late. All the legislations, frameworks and regulations are rapidly being approved by the legal bodies and implemented as we write these lines.
The Corporate Sustainability Due Diligence Directive (CS3D) proposed in February earlier this year has been now approved and set for voting in June.
This new directive, focused on corporate supply chains, will affect more than 12.000 EU companies and 4.000 non-EU. The CS3D will require these companies to identify and mitigate environmental and social impacts in their value chains, and to align their business plans and strategies with the transition to a sustainable economy.
By integrating human rights and environmental concerns into business operations and corporate governance, this directive hopes to promote sustainable and responsible corporate behaviour. The new rules will ensure that businesses address the adverse impacts of their actions, both within and outside of Europe and in their value chains.
Identification, eradication, prevention, mitigation, and accounting of adverse effects on human rights and the environment in the company’s internal operations, subsidiaries, and value chains are the main components of this task.
But we not only have to prepare our businesses for the new and existing legislations. We also need to get up to speed with sustainability to reduce risks, improve our positioning and differentiation, and get access to the growing number of customers who are already demanding compliance with these regulations.
In today’s complex global supply chains, where products often pass through multiple suppliers and countries before reaching consumers, the need for reliable data to assess and verify supply chain practices has become more important than ever. Transparency is crucial, and getting independent, trusted and unbiased data will be the key.
However, collecting and validating information across the entire supply chain can be difficult for companies. Having access to accurate, reliable and timely data is a significant challenge that all stakeholders face today.
Data has historically been gathered from a variety of sources, including operator announcements and anecdotal evidence, none of which are entirely trustworthy and helpful. The data itself might not be reliable or consistent, and obtaining it can be quite difficult. The length of time it takes to gather the data also has an impact on its reliability and accuracy, making it frequently out-of-date.
And here comes the good news.
To get access to independent, trusted and unbiased data needed for the sustainability reporting of the company, you can get help from space.
Remote sensing and Earth Observation technologies have emerged as important sources of trusted data for supply chain due diligence. These technologies use satellite imagery and other remote sensing techniques to collect data on various aspects of supply chain operations, such as deforestation, land use, water usage, and biodiversity.
Satellite imagery and geospatial data can provide a comprehensive and real-time view of supply chain practices, covering large geographic areas and detecting changes over time. This enables companies to monitor and evaluate the performance of their suppliers across multiple locations, identify potential risks or non-compliance, and take proactive measures to address them.
Satellite data is unbiased and transparent, as it is based on scientific measurements and observations rather than self-reported or subjective information. This enhances the credibility and reliability of the data, making it a trusted source for assessing supply chain sustainability and compliance.
Satellite data is scalable and cost-effective, as it can cover vast areas and multiple suppliers simultaneously, reducing the need for costly and time-consuming on-site audits or inspections.
Companies can acquire a deeper understanding of their supply networks and make wise decisions to support ethical and sustainable supply chain practices by integrating remote sensing and earth observation data into supply chain due diligence procedures.
By combining satellite images and advanced data science and automation, GlobalTrust can deliver measurable and objective information in a cost-efficient way. We collect the data and analyse it, providing objective and reliable insights into suppliers’ activities.
Some of the indicators that we can monitor and measure are water scarcity, movement of settlements, stability of key infrastructures, deforestation, water quality, vegetation stress and land use changes.
In conclusion, even if you are too late for anticipation, you can still be on time for the new regulations and prepare your company for all the forthcoming changes that will be required.
Sustainability can’t be a part of the business plan. It has to be the business plan. And GlobalTrust will be there to support you on this new path with the help of satellite imagery and geospatial data.