This page explores how Ethos™ is adaptive to aid in brand compliance with regulations, industry frameworks, and buyer-specific programs. The menu on the right can be used to navigate to voluntary frameworks and more.
The passing of regulations, such as the European Union Deforestation Regulation (EUDR), places significant pressure on brands and companies to shore-up transparency and chain-of-custody practices in their supply chains. While the EUDR is only one of many regulations that brands are scrambling to address, it points to a common thread; without data and transparency, social and financial risks to business lie ahead. Without evolving their supply chains to meet EUDR requirements, brands and companies place themselves at risk of hefty fines and penalties, exclusion from the EU market at-large, and permit more nimble brands to carve out increasing shares of the existing market.
Legally, the EUDR integrates stringent monitoring, reporting, and verification mechanisms that operators must adhere to, ensuring compliance with environmental standards and human rights protections in supply chains. The ultimate aim of the EUDR is to establish a transparent, accountable trade environment that aligns with the EU's broader environmental and sustainability goals, thus impelling the market to shift in this direction in favor of retaining access to EU buyers and consumers.
Without evolving their supply chains to meet these requirements, brands and companies place themselves at risk of hefty fines and penalties, exclusion from the EU market at-large, and permit more nimble brands to carve out increasing shares of the existing market.
The EUDR represents a compulsory regulatory framework. Future potential compulsory regulatory frameworks include the United States “Fostering Overseas Rule of Law and Environmentally Sound Trade” (FOREST) Act. Due to the rigor of these regulations it is imperative that companies and brands adopt high-transparency reporting models in their supply chains.
<aside> 👉 Ethos supports your navigation of the complex and evolving regulatory landscape.
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Ethos™ is designed in such a way that it inherently meets the requirements of compulsory regulatory frameworks through its comprehensive data verification and tracking program. The framework established by Ethos™ includes detailed monitoring of supply chains, geolocation tracking of production sites, utilization of primary, secondary, and tertiary data sets, and rigorous third-party audits.
This approach is aligning with with EUDR mandates for traceability and sustainability with agricultural imports. Therefore, brands participating in the Ethos™ program are becoming equipped to meet EUDR standards without needing additional adaptation. Ethos™ may also be adapted beyond current commodities tracked, broadening its effectiveness at monitoring two or more commodities used within a given product for a given brand. Read the legislation in detail here. ↩️