European supplements industry expresses widespread support for mandatory government-established sustainability standards

As many as 84% of European nutraceutical industry players are in favour of governments establishing a minimum legal standard for corporate sustainability and due diligence, according to a Vitafoods Insights survey, with 76% saying companies should be penalised for non-compliance.

In February 2022, the European Commission adopted a proposed regulation to ensure sustainability and corporate social responsibility (CSR) throughout global value chains.

The Commission says the aim of the Corporate Sustainability Due Diligence Directive is to “foster sustainable and responsible corporate behaviour, and to anchor human rights and environmental considerations in companies’ operations and corporate governance”.

It will require companies to implement accurate, comprehensive sustainability reporting, identifying and, where necessary, preventing, ending, or mitigating adverse impacts of their activities on human rights and the environment.

The measures are part of the EU’s efforts to become climate-neutral by 2050.

Which companies will be affected by the EU Directive?

The rules will apply to EU companies that have more than 500 employees and a net turnover of €150 million, and EU companies with more than 250 employees and a net turnover of €40 million which operate in “highimpact” sectors.

High-impact sectors are identified as agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages.

Many nutraceutical companies, including manufacturers of vitamins and minerals, fish oils, collagen, whey protein, and probiotics, are expected to be affected.