SUNJIN NEWSLETTER
Beyond regulatory compliance, pioneering new markets in the era of ESG!
By Kim, Yongsung
Translated By Lim, Julia
July 2024, NO.32
Hi, how are you?
In this issue, we will introduce the “European Union Deforestation Regulation (EUDR),” which will become mandatory from the end of this year and the recent “ESG-related legislation” passed by the EU.
In July 2021, the EU set a goal to reduce net greenhouse gas emissions by 55% compared to 1990 levels by 2030 and to achieve carbon neutrality by 2050 through its carbon neutrality legislative package, “Fit For 55,” which includes 12 measures to address climate change.
As part of achieving these goals, in April 2023, the European Union passed the European Union Deforestation Regulation (EUDR) to regulate the export of products related to deforestation and forest degradation within the European market.
This regulation identifies seven commodities—cocoa, coffee, soy, palm oil, timber, rubber, and livestock—as major drivers of deforestation and requires traceability and legal compliance for these products imported into the European market.
According to the EUDR regulation “EU 2023/1115,” products sold in the EU market must prove that they were not produced on land deforested after December 2020.
This regulation came into effect on June 29, 2023, and will become mandatory from December 30, 2024. Products that do not meet these requirements will be banned from being exported to and sold across all 27 EU member states. Additionally, violations of this regulation will result in fines of at least 4% of the company’s revenue within the EU.
We handle palm oil, one of the regulated commodities, and we have established a deforestation-free supply chain by using only RSPO-certified palm-derived ingredients.
Meanwhile, the EU recently passed a bundle of five ESG-related laws.
Among them are the Corporate Sustainability Due Diligence Directive (CSDDD) and the Ecodesign for Sustainable Products Regulation (ESPR), which are expected to significantly impact various industries, including the cosmetics sector.
These two laws are anticipated to apply not only to large corporations but also to small and medium-sized enterprises within their supply chains in the next two years.
As demand for value-driven consumption increases, ESG is evolving beyond the traditional concept of clean beauty to incorporate sustainability into products.
Sunjin Beauty Science will comply with ESG-related market requirements to provide products that enable our customers to secure future market competitiveness.
If you have any inquiries, please feel free to contact us.
Areum Jeong / Regional Sales Manager
E-mail : sales1@sunjinbs.com
