Check Your Value Chain: Managed Services

With the ongoing implementation of EU regulations such as the CSDDD, EUDR, and CBAM companies operating in Poland are facing increasing compliance and reporting obligations across their value chains.

The CSDDD introduces due diligence responsibilities for large enterprises, which will be required to identify, prevent, and mitigate adverse impacts on human rights and the environment. EU Member States, including Poland, are now expected to transpose the directive into national law by July 2027. The application of key obligations for the companies will begin in July 2028.

The EUDR introduces a ban on placing products linked to deforestation on the EU market. This regulation requires companies to closely monitor the origin of raw materials and maintain detailed due diligence documentation.

Meanwhile, the CBAM imposes a reporting obligation and carbon cost on importers of certain goods from outside the EU, aiming to level the playing field and prevent carbon leakage.

In summary, compliance and reporting requirements across the value chain are growing significantly, and companies must prepare for comprehensive changes in sustainability strategy, risk management, and stakeholder engagement.

In an era of growing regulatory and societal expectations, a supplier’s ESG profile has become a critical component of risk assessment. Poorly managed relationships with business partners can lead to:

• reputational risks, directly affecting brand value and stakeholder trust,

• operational disruptions, resulting from non-compliance or lack of transparency,

• challenges in ESG reporting, especially when it comes to collecting data across the entire value chain.

Companies that lack full visibility into their suppliers’ environmental, social, and governance practices expose themselves to serious financial and legal consequences.