Malaysian Rubber Council to Present Position Paper on EU Sustainability Due Diligence

Strategic Insights -

The Malaysian Rubber Council (MRC) is organizing a special mission to Brussels, Belgium from June 18-22, 2023 to present a position paper on the European Union's (EU) Corporate Sustainability Due Diligence (CSDD). The EU CSDD aims to promote sustainable and responsible corporate behavior, incorporating human rights and environmental considerations into companies' operations and governance. The proposed regulations will require businesses to address adverse impacts of their actions, including those within their value chains, both inside and outside of Europe. Malaysian companies that do business with EU-based firms will be subject to the regulations' due diligence requirements, which involve conducting risk assessments, monitoring suppliers, and taking actions to address identified adverse impacts.

Key Takeaways:

  • The Malaysian Rubber Council (MRC) is leading a special mission to present a position paper on the EU's Corporate Sustainability Due Diligence (CSDD) to the European Commission (EC).
  • The EU CSDD aims to promote sustainable and responsible corporate behavior, incorporating human rights and environmental considerations into companies' operations and governance.
  • The proposed regulations will require businesses to address adverse impacts of their actions, including those within their value chains, both inside and outside of Europe.
  • Malaysian companies that do business with EU-based firms will be subject to the regulations' due diligence requirements, which involve conducting risk assessments, monitoring suppliers, and taking actions to address identified adverse impacts.
  • MRC deputy chief executive officer Izwan Zarik Mohammad Sapari welcomes the proposal and appreciates the proposed regulations as a step towards sustainability.
  • The position paper was prepared based on consultations and responses gathered through two initiatives: a roundtable discussion with industry players and a survey on EU CSDD.
  • The Malaysian rubber industry is seeking to highlight the challenges faced by companies in the industry and present recommendations to support the effective implementation of the regulations.

Statistics:

  • The MRC special mission will take place from June 18-22, 2023.
  • The EU CSDD proposal was adopted by the European Commission (EC) on February 23, 2022.
  • The European Parliament agreed on its position on the directive on the CSDD on June 1, 2023.
  • The proposed regulations will impact Malaysian companies that do business with EU-based firms.

Sources:

  • Bernama news agency, official news release on the MRC mission.
  • European Commission (EC), Proposal for a directive on Corporate Sustainability Due Diligence, adopted on February 23, 2022.
  • European Parliament, Position on the directive on the Corporate Sustainability Due Diligence, agreed on June 1, 2023.