基尔世界经济研究所（IfW）：欧盟对中小企业尽职调查立法的累积效应

STUDY

RequestedbytheINTAcommittee

ThecumulativeeffectofduediligenceEUlegislationonSMEs

Authors:

AoifeHANLEY,FinnOleSEMRAU,FraukeSTEGLICHandRainerTHIELE

EN

(KielInstitutefortheWorldEconomy,Germany)

EuropeanParliamentCoordinator:

PolicyDepartmentforExternalRelations

DirectorateGeneralforExternalPoliciesoftheUnion

PE702.597–September2023

DIRECTORATE-GENERALFOREXTERNALPOLICIES

POLICYDEPARTMENT

EN

©EuropeanUnion,2023

EP/EXPO/A/COMMITTEE/FWC/2019-01/LOT5/R/10

September2023

STUDY

ThecumulativeeffectofduediligenceEUlegislationonSMEs

ABSTRACT

ThisstudyaddressestheexpectedimpactoftheEU’sCorporateSustainableDueDiligenceDirective(CS3D)onsmallandmedium-sizedenterprises(SMEs).IttakestheGermansupplychainact(Lieferkettengesetz)asanexamplethatmayholdlessonsforEUduediligencelegislation.Againstthebackgroundofareviewoftheexistingliteratureontheimpactofsustainabilityregulations,weconductedexpertinterviewswithGermanbusinessassociations,Germanforeignchambersofcommerceinemergingeconomies,aswellasGermansupportingagencies.TheobjectivewastoidentifykeychallengesSMEsintheEUandthirdcountriesfacewhendealingwiththerequirementsofthesupplychainact,andtodiscusssupportmeasuresthatSMEsneedorarealreadyusing.Basedontheresultsofthisanalysis,weproviderecommendationsastohowtheEUcanhelpeasetheburdenforSMEswhenimplementingtheproposedCS3D.Theseincludetargetedcapacity-buildingmeasuresforSMEsuppliersindevelopingcountries,whomostlyknowlittleaboutEuropeanduediligencelegislation,andsimplificationsinthereportingrequirementsforSMEsinEurope.

PolicyDepartment,Directorate-GeneralforExternalPolicies

AUTHOR(S)

.AoifeHANLEY,SeniorResearcher,KielInstitutefortheWorldEconomy,Germany;

.FinnOleSEMRAU,Researcher,KielInstitutefortheWorldEconomy,Germany;

.FraukeSTEGLICH,Researcher,KielInstitutefortheWorldEconomy,Germany;

.RainerTHIELE,DeputyDirectorResearchCentreInternationalDevelopment,KielInstitutefortheWorldEconomy,Germany

PROJECTCOORDINATOR(CONTRACTOR)

.DanielMAYER,Bruegel

TheauthorswouldliketowarmlythankMilenaBaumert,RolfLanghammer,TomkeNecker,andChristophSchweickhardtfortheirvaluablesupportandfeedback.

ThispaperwasrequestedbytheEuropeanParliament'sCommitteeonInternationalTrade(INTA).

Thecontentofthisdocumentisthesoleresponsibilityoftheauthors,andanyopinionsexpressedhereindonotnecessarilyrepresenttheofficialpositionoftheEuropeanParliament.

CONTACTSINTHEEUROPEANPARLIAMENT

Coordination:WolfgangIGLER,PolicyDepartmentforExternalRelations

Feedbackiswelcome.Pleasewriteto

wolfgang.igler@europarl.europa.eu

Toobtaincopies,pleasesendarequestto

poldep-expo@europarl.europa.eu

VERSION

English-languagemanuscriptcompletedon31July2023.

COPYRIGHT

Brussels©EuropeanUnion,2023

Reproductionandtranslationfornon-commercialpurposesareauthorised,providedthesourceisacknowledg-edandtheEuropeanParliamentisgivenpriornoticeandsentacopy.

ThispaperwillbepublishedontheEuropeanParliament'sonlinedatabase,

'ThinkTank'

ThecumulativeeffectofduediligenceEUlegislationonSMEs

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Tableofcontents

1Introduction4

2OverviewofEUduediligencelegislationaffectingSMEs5

2.1Existingsustainabilityregulations5

2.2Impactofsustainabilitylegislation14

3AnalysisofEUduediligencelegislationrelevantforSMEs21

3.1Interviewmethods21

3.2PracticalimplicationsforSMEs22

4Fixingshortcomings28

5ImprovingduediligencepracticesforSMEswithinsupplychains33

5.1Targetedcapacitybuildingfordeveloping-countrysuppliers34

5.2Identificationofcomplyingfirmsindevelopingcountries34

5.3Dialoguewithtradingpartners35

5.4Improvingtheinformationinterface35

5.5SimplificationofproceduresforSMEs36

5.6Gradatedapproachtolegalrequirements36

5.7Ensuringtimelyprocedures36

6Conclusiveremarks37

References39

Appendix43

PolicyDepartment,Directorate-GeneralforExternalPolicies

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1Introduction

Participationinglobalsupplychains(GSCs)iswidelyassociatedwitheconomicbenefits,suchashigherproductivityandemploymentgrowth(WorldBank,2020).Further,involvementinGSCsisgenerallybeneficialforcompaniesandtheiremployeesas,forinstance,exportingcanhaveapositiveimpactonworkingconditions(Tanaka,2020),ortheadoptionofenvironmentalinnovations(Hanley&Semrau,2022).However,thesustainabilityofproductioninglobalsupplychainsisincreasinglycontested.Reportsofnegativesocialandenvironmentalexternalitiesfueltherejectionofglobalisationallovertheworld.Concernsaboutnegativesocialandenvironmentalimpactsoflargemultinationalenterprises(MNEs),especiallyindevelopingandemergingeconomies,arewidespread.Companiesarethereforeincreasinglyunderpressuretoensurecertainminimumstandardsintheirownproduction,butalsobysuppliersalongtheirsupplychains(Herkenhoffetal.,2021).Sincetheimpactofvoluntaryapproachesisambiguousandcanbeineffective,mandatoryregulationshavebeenintroducedrecentlyinmanyEuropeancountries,includingFranceandGermany.

ThisstudyaddressestheCorporateSustainableDueDiligenceDirective(CS3D)oftheEuropeanCommission,theEuropeanParliamentandtheEuropeanCouncil.Thestudyproceedsinseveralsteps.First,itdiscussestheexpectedimpactofCS3Donsmallandmedium-sizedenterprises(SMEs)inEUandnon-EUcountries.Second,thestudyexaminesmeasuresandtoolsthatcansupportSMEs.Overall,weaimtogaininsightsintothepurchasingpracticesoflargerEUcompaniestowardstheirsuppliersandidentifygoodpracticeexamplesofsupportmeasuresforSMEs.Finally,basedonthepreviousanalysis,thestudydiscusseshowtheEUcanmitigatepossiblenegativeimpactsandsupportSMEstoassistthemcomplywithfutureduediligenceexpectationsfromthecompaniestheydobusinesswithaspartoftheimplementationmeasureswhenthefutureCS3Drulesareinplace.

TogaininsightsintothepossibleimpactsoftheCS3DonSMEs,wefirstsystematicallyreviewevidenceonrelatedregulationstargetingsingleproducts/sectors(see,e.g.,Leipold(2017)forananalysisoftheEUtimberregulation)orhumanrightselementssuchasslavelabour(SchaperandPollach,2021),andfromthebroaderliteratureonstandardsorCorporateSocialResponsibility(CSR)reportinginglobalvaluechains(Fiechter,HitzandLehmann,2018;LafarreandRombouts,2022).Thisoverviewguidestheclassificationofpotentialbenefitsandchallenges,especiallyforSMEs.WethenapplytheGermansupplychainactasacasestudy,ontheintuitionthatitsongoingimplementationmightprovideusefullessonsfortheproposedCS3D.Weshouldbearinmind,however,thattheGermansupplychainactislesscomprehensivethantheCS3D,limitingitsscopetoimmediate,Tier1suppliers,whiletheCS3Denvisagestheentirevaluechain.Furthermore,theGermansupplychainactneglectsenvironmentalaspects.Nevertheless,theGermansupplychainactcanhelptoillustratewhichaspectsworkwellandwhichprovemorechallenging.Tothisend,weconductexpertinterviewswithrepresentativesofGermanbusinessassociations,Germanforeignchambersofcommerceinemergingeconomies,aswellasGermansupportingagencies.TheexpertinterviewsdonotonlypointtotheopportunitiesandchallengesSMEsfacewhenimplementingsustainabilityregulations,butalsoexplorethetypeofsupportofferedtoSMEsanditsusefulness.

Inallstepsoftheanalysis,wetakethedifferencesbetweenSMEsintheEUandthirdcountriesintoconsideration.Integratingtheperspectiveofthirdcountries–inparticulardevelopingandemergingeconomies–isessentialbecausetheproposedCS3Dultimatelyaimsatimprovingthesocialandenvironmentalsituationinthesecountriesandthereforeexplicitlypursuesdevelopmentgoals.

Thestudyisstructuredasfollows:Chapter2givesanoverviewofexistingEUduediligencelegislationanddiscussestheirpotentialimpactsonSMEsbasedonkeyfindingsofthepreviousacademicliterature.Chapter3providesadeeperanalysisofEUduediligencelegislationrelevantforSMEsandtheexpectedimpactoftheDirectiveonCorporateSustainableDueDiligenceonSMEsinEUandnon-EUcountries.Basedonthechallengesidentifiedintheinterviews,Chapter4providesanoverviewofsupportingtoolsthat

ThecumulativeeffectofduediligenceEUlegislationonSMEs

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companiesarealreadyfamiliarwithanddiscussesadditionalsupportthatwouldbeneeded.Thesupport-ingrolethatdevelopmentcooperationcanpotentiallyplayforSMEsindevelopingcountriesisalsobrieflymentioned.Chapter5shedslightonhowtheEUcanhelpeasetheburdenforSMEswhenimplementingtheproposedCS3D.Chapter6concludes.

2OverviewofEUduediligencelegislationaffectingSMEs

TolookattheimplicationsofduediligencelegislationonSMEs,weneedtostepbackintime,examiningtheraftoflegislationtouchingonthistheme.Overthepast,theEUhasproposedorimplementedseveralregulationstoimprovethesustainabilityofglobalproductionandtoconsideranychangesintheobligationsofEuropeanbusinessesinresponsetoatighteningintherules(foranoverview,cf.Verbrugge,2022).Onesuchlegaltighteningrelatestohowproductioncanbecarriedoutmoreresponsibly.InlinewithArticle6oftheTreatyoftheEuropeanUnion,theParisAgreementandtheEUGreenDeal,socialandenvironmentalaspectsofafirm’sproductionareconsidered.Otherregulationspertaintospecificindustries,asisthecasewiththeConflictMineralsandtheDeforestationRegulations,respectively.Alternatively,regulationscanopttotakeamorestringentlineonlabourabuses,thepurposeoftheForcedLabourRegulation.Othermeasuresaremorecomprehensive.Adoptingabroaderangle,regulationsarenotlimitedtospecificsectorsoraspectsofbusinessactivity.AcaseinpointistheCorporateSustainabilityReportingDirective,theRegulationConcerningBatteriesandWasteBatteries,theEUTaxonomyRegulation,ortheCS3D.

Whilemostoftheseregulationstargetlargerfirms,SMEsareoftenindirectlyaffectedwhentheydobusinesswithlargercompaniesintheEUtowhomtherulesapply.Sofar,theextenttowhichSMEsarealreadyimpacted(orwillbeaffectedinfutureperiods)inresponsetochangesinthediligencerulesisunclear.Inthischapter,weprovideanoverviewoftherelevantduediligenceregulationsandhowtheyaddressSMEs(Chapter2.1).ThisoverviewincludesanassessmentoftheexistingEUduediligenceregulations,recentEUtradeandinvestmentagreementscontainingprovisionsonsustainabilityandduediligenceaswellasinternationalstandards.Additionally,wediscusspotentialimpactsofsuchregulations,particularlyonSMEs.Ourassessmentisbasedonevidencefromexistingstudies.Wealsoidentifythesectorsthatareparticularlyvulnerabletohumanrightsandenvironmentalviolations(Chapter2.2).

2.1Existingsustainabilitylegislations

2.1.1EUduediligenceregulations

OurstartingpointinthischapteristoprovideasnapshotofexistingEUduediligenceregulationswhichtouchontheresponsibilitiesandactivitiesofSMEs.OurlistofrelevantregulationscomprisesboththeEUConflictsMineralsRegulationandtheEUCorporateSustainabilityDueDiligenceDirective.Additionally,welookattheForcedLabourRegulation,DeforestationRegulation,theEUCorporateSustainabilityReportingDirectiveandtheEUTaxonomyRegulation.OneregulationwedroppedfromthelististheEURegulationConcerningBatteriesandWasteBatteries,astheserulesdonotpertainspecificallytoSMEs.Additionally,thereisaraftoftrade-andinvestment-specificrules,pickinguponissuesofsustainabilityandduediligenceintheinternationalisationactivitiesofbusinesses,wheretheactivitiesofSMEsaredirectlyaffected.Accordingly,wediscusssuchagreements,arepresentativecasebeingtheEU-NewZealandTradeandInvestmentAgreement.Apartfromrulesonlabour,deforestationandtrade,thereisalsoaseparatecategorywhichconsidersinternationalstandards–similarlycriticalfortheactivitiesofSMEs.Table1providesasummary,whichgivesthereaderanoverviewofthescopeoftheseregulationsanddirectives.

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Table1:OverviewofEUduediligenceregulations,recenttradeagreements,andinternationalstandardsandtheirSMEcoverage

Regulations

Coverage

Actionstaken

Supportmeasures

SMEexcluded

EUConflictMinerals

Regulation

aimsfornon-bindingguidelines

revieweffectivenessevery3years

technicalassistance;benefitfromCompetitivenessof

EnterprisesSMEs(COSME)

program

EUCorporateSustainability

DueDiligenceDirective(CS3D)

laysdownmeasurestolimitthepassingonoftheburdentothesmallersuppliersinthevalue

chain

implementationofinvestmentsthatpreventadverseimpacts;jointstakeholderinitiatives;EUdevelopmentcooperation

instruments

supportinfulfillingthedue

diligencerequirements;

guidanceonmodelcontractualclauses;websites,portalsor

platformsforinformational

purposes;financialsupportofSMEs

SMEsarenotincludedinthescopeofthisDirective

EUForcedLabourRegulations

guidelinesonduediligence

publiclyavailableguidelines;

situationofSMEsistobe

addressedthroughthedesignofthemeasure

providingaregistryofpenalisedandbannedentitiesand

products

exceptionofSMEsisnotseenaviableoption

EUDeforestationRegulation

AttenuatedrequirementsforSMEs

collectrecordofsuppliersand

customers;informthe

competentauthoritiesifnew

informationbecomesavailableregardingthenon-complianceoftheircommoditiesandproducts

technicalandotherassistanceandguidancetooperators

EUCorporateSustainabilityReportingDirective(CSRD)

sustainabilityreporting

SMEsshouldbeallowedto

report

SMEsaregiventimetoprepare;assessmentofimpact

EUTaxonomyRegulation

guidelinesonnon-financial

reporting

SMEsmayreport

voluntaryrequirementforSMEs

EU-ChileAdvancedFrameworkAgreement

measurestoenhancebenefitforSMEs

SMEsspecificwebsite;SMEscontactpoints

ThecumulativeeffectofduediligenceEUlegislationonSMEs

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Regulations

Coverage

Actionstaken

Supportmeasures

SMEexcluded

EU-UKTradeandCooperationAgreement2021

measurestoenhancebenefitforSMEs

SMEsspecificwebsite;SMEscontactpoints

predictableregulatory

environment;impactanalysisofregulation

EU-VietnamFreeTrade

Agreement2020

measurestoreducecostsforSMEs

simplifiedcustomprocedures

possiblesubsidiesinfavourofSMEs

EU-NewZealandTrade

Agreement

measurestoenhancebenefitforSMEs

SMEspecificwebsite;SMEcontactpoints;cooperationbetweenUnionandMaori-ownedenterprises;supporttransparentandfactual

sustainabilityschemes

consideringtheeffectsofthisregulationonSMEs

OECDDueDiligenceGuidanceforMultinationalEnterprisesonResponsibleBusiness

Conduct

encouragesSMEstoobservetherecommendations

developinternalcontrol,ethicandcomplianceprogrammesaccordingtothesizeofthe

enterprise

co-operationwithother

stakeholders,personneltraining,capacitybuilding

OECDDueDiligenceGuidanceforResponsibleSupplyChainsofMineralsfromConflict-

AffectedandHigh-RiskAreas

recommendationsforSMES

buildingpartnerships;buildingcapacityforsuppliers

Source:Owncompilationbasedonexistingdocumentationofregulations.

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EUConflictMineralsRegulation

OnemajorstepforwardforcorporateduediligencewastheintroductionoftheEUConflictMineralsRegulation.Thisregulation,whichwasadoptedandenteredintoforcein2017andappliedtoEUimportersfromJanuary1,2021,aimsformandatoryrequirementsforimportersoftin,tantalum,tungsten,andgold(3TG)comingfromconflict-affectedandhigh-riskareas(CAHRAs).InordertofacilitatetheimplementationandidentificationofCAHRAs,particularlyforSMEs,thisregulationlaidthefoundationforalistofCAHRAs,whichisregularlyupdated.

Thisreviewenvisagesanindependentassessmentoftheshareoftotaldownstreamfirms–firmspositionedclosetofinalconsumptionalongasupplychain–with3TGintheirsupplychain,withduediligenceschemesinplace.Inaddition,thereviewshallassesstheadequacyandimplementationoftheseduediligenceschemesandtheimpactoftherulesforupstreamfirms–firmspositionedclosetotherawproductinasupplychain–inconflictareas.Basedoninformationgleanedfromtheseregularreviewsoftheregulationanditsefficacy,thereviewerscanconsiderfurtherlegislativetweakstotheproposals,introducingadditionalobligationsforfirms.

Becauseitiscomparativelytime-andresource-consumingforSMEimporterstoverifythealignmentoftheir3TGsupplierswiththeregulation,theCommissionismindfuloftheneedforsmallerfirmstohaveaccesstoadequatetechnicalassistance.Additionally,theremaysometimesbeaneedtoliaisewithateamofexpertswhenimplementingthisregulationwithintheirfirm.Toaccessthisformofsupport,smallerEUimportersof3TGcanrefertotheProgramfortheCompetitivenessofEnterprisesandSmallandMedium-sizedEnterprises(COSME).Thelatter,whichhelpsleveltheplayingfieldforsmallerfirms,wasestablishedunderEURegulationNo1287/2013oftheEuropeanParliamentandoftheCouncil.AnotherexampleforasupportingmeasureistheDueDiligenceReady!portal

1

.Thisportalprovidestoolsandtrainingresourcesspecificallydesignedtoassistsmallandmedium-sizedEUcompaniesinconductingduediligenceontheirmineralsandmetalssupplychains,ensuringcompliancewithregulatoryrequirements,includingResponsibleMiningRegulation.Theportal'smainobjectivesaretohelpcompaniesto(i)understandtheadvantagestheycangainfromconductingduediligenceontheirsupplychains;(ii)assessandmitigaterisksandimpactsintheirsupplychains;and(iii)comprehendandimplementtheOECDduediligenceguidanceforresponsiblesupplychainsofmineralsfromconflict-affectedandhigh-riskareas.

EUCorporateSustainabilityDueDiligenceDirectiveProposal

Wenowturntotheinstrumentlyingatthecoreofouranalysis–theEUCS3Dcurrentlyunderdiscussion.InFebruary2022,theEuropeanCommissionproposedtheCS3DandinJune2023theEuropeanParliamentadopteditsamendmentstothisproposal.Undertheprovisionsoftheproposal,regulatorsaimtolimitthereportingburdenofsmallerEUsupplierswithinthesupplychain,inthehopethatlargercompaniescanabsorbsomeofthisreportingburden.Becauseoftheonerousnessofreporting,itisimportanttohighlightthatSMEsareundertheCommission’sproposalnotdirectlyincludedinthescopeofthisdirective,beingexcludedfromtheirduediligenceduty.Forsmallerfirms,thefinancialandadministrativeburdenofsettingupandimplementingaduediligenceprocessisrelativelyhigh.Forthemostpart,theydonothavepre-existingduediligencemechanismsinplace.Additionally,theyaremorelikelylackingexperienceandexpertisewithduediligence.Theyarealsomorelikelytolackspecialisedpersonnel(e.g.,anin-houselegalteam).Forthisreason,thecostofcomplyingwithduediligencerulesimpactssmallfirmsdisproportion-ately.Nevertheless,despiteexcludingsmallfirmsfromtheprovisionsoftheregulation,SMEsareindirectlyaffected,totheextentthatsome–toavoidlosingcontractswiththeirlargercustomers–investtimeandresourcesinensuringregulatorycomplianceoftheirsuppliers.Inthissense,despitebeingexcludedfromtheprovision,SMEsarenotexemptfromtheburdenofreporting.

1See

https://single-market-economy.ec.europa.eu/sectors/raw-materials/due-diligence-ready_en.

ThecumulativeeffectofduediligenceEUlegislationonSMEs

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Topreventadverseimpacts,theCS3DenvisionssupportforSMEs.Additionally,itseekstofacilitatejointstakeholderinitiatives,amovefurtherstrengthenedbyinitiativestofosterEUdevelopmentcooperation.Ultimately,theregulationprovidesforSMEstobuildessentialfinancialandoperationalcapacity,cushioningthemagainstanyregulatoryfalloutfromthenewrules.CompanieswhosebusinesspartnerisanSMEareobligedtosupporttheirsmallerpartner,assistingtheminfulfillingtheduediligencerequire-ments.WheretheviabilityoftheSMEisjeopardisedbythelargerfirm’scomplianceobligations,thelatteristonegotiatewithitsSMEpartner,inamannerwhichisfair,reasonable,non-discriminatoryandproportionate.Inthisway,thenewdirectiveproposesmeasureswhichrestricttheextenttowhichlargecompaniescanshiftthereportingburdentotheirsmaller,upstreamSMEpartner.Inaddition,theCommissionaimstoprovideguidanceontheformulationofcontractualclauses,whichwouldlimittheextenttowhichtheburdencanbeshiftedfromlargercompaniestotheirsmallerSMEpartners.

Movingfromfirmstothejurisdictionsinwhichthesefirmsoperate(EUmemberstates),thedirectiveenvisagesastrongandsupportiveplatformforunderpinningtheimplementationofthenewregulation.Eitherindividuallyorjointly,memberstatescansetupdedicatedwebsites,portalsorplatformstoinformfirmsofthenewdiligencerules.Inthisway,SMEsarefurthersupportedintheirresponsetotherules.

EUForcedLabourRegulationProposal

TheproposalofanEUForcedLabourRegulation,putforwardbytheEuropeanCommissioninSeptember2022,foreseesthattheCommissionshouldissueguidelinesonduediligenceconcerningforcedlabour,insuchawaythattakesintoconsiderationthesizeandeconomicresourcesofthebusinessestowhomtherulesapply.ItisacknowledgedthatSMEsareequippedwithlimitedskillsandresourcestoensurethattheirproductshavenotbeenproducedusingforcedlabour.TheimpositionofadditionalreportingburdensonSMEsshouldbeavoided.

Tosupportthisgoal,theguidelinesenvisagemakingriskindicatorsrelatingtoforcedlabourpubliclyavailabletoSMEs.Thisinitiativeismeanttocomplementgapsinotherregulations,forexample,theexemptionofSMEsfromtheproposedCS3D.ContrarytotheCS3D,thisregulationdoesnotexcludeSMEsfromtheprovisionsbecauseexemptingSMEswouldaffecttheeffectivenessoftheoverallproposal,creatinguncertainty.TheregulationstipulatesthatthechallengesfacingSMEsshouldbemitigatedthroughthedesignofthisriskindicator,theprovisionofrisk-basedenforcement,andtheprovisionofsupporttools.

Asalreadymentioned,thismeasureisdesignedtocaterfordifferencesinthesizeandresourcingoffirmsfallingwithintheprovisionofthenewrules,intheknowledgethatsmallerbusinesseslackequivalentresourcesforauditingtheirsupplychains.Likewise,themeasuretakesaccountofthenumberofproductsaffectedbytherules,aswellastheextentofsuspectedforcedlabourusedintheprovisionoftheseproducts.Intermsofsupportmeasures,itissuggestedthatpublicauthoritiesprovidearegistryofpenalisedandbannedentitiesandproducts.SucharegistryofexcludedbusinessesisespeciallyhelpfulforSMEs,helpingthemtonavigatethepoolofavailablesuppliers.AfurthersourceofsupportbytheCommissionistheprovisionofguidelinesortemplates,allofwhichhelptoreducethecostofauditingandreportingabusesconcerningforcedlabour.

EUDeforestationRegulation

TheEUDeforestationRegulationstatesthatSMEsarerequiredtocollectarecordoftheirsuppliersandcustomers.Thisrecordistobekeptforatleastfiveyearsandtheinformationmadeavailabletotherelevantauthoritiesuponrequest.Thisrequirementisestimatedtoinvolveonlynegligiblecosts,assuchinforma-tionisroutinelycollectedbybusinessesaspartoftheirday-to-dayoperations.IfanSMEreceivesnewinformation,whichincludessubstantiatedconcernsaboutthecomplianceoftheirproductswiththerequirementsofthisregulation,theymustimmediatelyinformtheauthorities.Memberstatesmayprovidetechnicalandotherassistanceorguidancetobusinessesfallingundertheprovisionsoftheregulation.

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Additionally,theregulationtakesintoconsiderationthespecialstatusofSMEsandtheirneedforadditionalhelpincomplyingwiththerequirements.

EUCorporateSustainabilityRep