Morning seeker discovers a delicious chocolate pastry, specifically a croissant
In the world of international trade, the supply chain for a simple treat like chocolate croissants is a complex web that spans continents. One such supply chain, involving cocoa beans from countries like Ghana, is undergoing significant changes in Germany and the European Union (EU) due to the Supply Chain Due Diligence Act (SCDDA) and the Corporate Sustainability Due Diligence Directive (CSDDD).
The CSDDD, set to come into force across the EU in July 2024 and to be transposed into national law by July 2026, aims to impose legal obligations on companies to respect human rights and environmental standards throughout their supply chains. This directive requires companies, like retail giant Lidl, to ensure their supply chains do not contribute to human rights abuses or environmental harm.
The status of the CSDDD in Germany and the EU is still evolving, with significant debate about balancing regulatory burdens and sustainability goals. The directive primarily applies to large companies, with fewer than 3,400 EU-based corporate groups falling under its scope. Smaller companies are generally less directly affected unless they are part of the supply chains of larger companies subject to the directive.
For Lidl, this means increased due diligence responsibilities on suppliers to ensure ethically and sustainably sourced ingredients, but the directive is unlikely to cause imminent supply issues in products like chocolate croissants. The laws primarily aim to improve sustainability and ethical sourcing over time rather than cause abrupt supply chain interruptions.
The future of supply chain monitoring remains uncertain due to the proposed changes and scrapping of laws. Chancellor Friedrich Merz has expressed a desire to scrap both the German and the European supply chain laws in the future. The EU is also planning to introduce its own supply chain law, which is expected to come into effect in mid-2028.
Meanwhile, the chocolate croissant supply chain has become a topic of interest on social media platforms like TikTok. A viral video about missing chocolate croissants at a Lidl supermarket in early June sparked a conversation about the intricacies of supply chains. However, it's important to note that the chocolate croissant supply chain discussion on TikTok may not accurately represent the complexity of the actual system.
As the CSDDD continues to evolve, it's clear that companies like Lidl will need to adapt to ensure compliance with the new regulations. While the directive may pose challenges, it also presents an opportunity for companies to improve their sustainability practices and contribute to a more ethical and environmentally friendly supply chain.
The debate surrounding the Corporate Sustainability Due Diligence Directive (CSDDD) in Germany and the EU has extended to the realm of finance, as investors are closely watching how companies, such as Lidl, will adapt to the new regulations.
The evolving CSDDD discussions in politics also reverberate in the broader sphere of general-news, with controversial proposals like Chancellor Friedrich Merz's desire to scrap the supply chain laws causing ripples in the public consciousness. Meanwhile, the intricacies of the chocolate croissant supply chain and concerns about Ethical and sustainable sourcing find a voice in the lifestyle section of digital platforms like TikTok.
