Question 1

What is the Stop-the-Clock mechanism in the EU Omnibus Simplification Package?

Accepted Answer

The Stop-the-Clock mechanism delays the reporting deadlines under the CSRD and CS3D. It gives large companies and listed SMEs more time to prepare by pushing back CSRD reporting for second- and third-wave companies by two years and delaying the CS3D start date by one year.

Question 2

Does the Stop-the-Clock mean companies can pause CSRD or CS3D preparation?

Accepted Answer

No. The directives still apply, and companies should continue building their sustainability data programs. The delay offers time to simplify processes — but reporting requirements remain.

Question 3

Are non-EU companies affected by the CSRD or CS3D delays?

Accepted Answer

Non-EU companies with EU customers or operations still need to collect supply sustainability data. The timeline postponement gives non-EU companies more time to get their sustainability programs in order.

Question 4

What are conflict minerals and why are they important in 2025?

Accepted Answer

Conflict minerals include tin, tungsten, tantalum, and gold (3TGs). Many companies also have responsible sourcing programs for cobalt, lithium, and mica. In 2025, due to rising global conflicts and new sanctions, sourcing these minerals responsibly is more critical than ever to avoid non-compliance and supply chain risks.

Question 5

What’s new in conflict minerals compliance for 2025?

Accepted Answer

Key updates include increased conflict in the eastern Democratic Republic of the Congo (DRC), new sanctioned smelters, and the addition of an RMAP-compliant smelter to the UFLPA Entity List. Companies need RCOI data, not just smelter compliance, to stay ahead.

Question 6

What is RCOI and why is it essential for compliance?

Accepted Answer

RCOI stands for Reasonable Country of Origin Inquiry. It ensures companies trace minerals back to their source, not just the smelter. In 2025, RCOI data is crucial to meeting legal requirements and avoiding hidden compliance risks.

Question 7

What is the CMRT and how is it used?

Accepted Answer

The Conflict Minerals Reporting Template (CMRT) is a standardized form used to gather data on 3TG minerals from suppliers. It helps companies comply with regulations like the Dodd-Frank Act by identifying smelters and countries of origin.

Question 8

How can companies build a strong conflict minerals compliance program?

Accepted Answer

Companies should perform a scope analysis, create a clear compliance plan, collect accurate supplier data using the CMRT, and monitor regulatory updates. Tools like Assent’s solution support reporting, smelter risk assessment, and RCOI data collection.

Question 9

What is changing with REACH regulations regarding hexavalent chromium (CrVI)?

Accepted Answer

The European Chemicals Agency (ECHA) is expected to move multiple CrVI substances (already classified as REACH SVHCs) from the REACH Authorisation List to the REACH Restricted Substances List (Annex XVII). This means that substances like chromium trioxide, chromic acid, and 12 additional CrVI compounds will no longer require prior approval but will instead be banned from use in products and parts in the EU market. A restriction proposal is expected by April 11, 2025.

Question 10

Why is REACH moving CrVI from authorization to restriction?

Accepted Answer

The current REACH authorization process has failed to keep up with the high volume of industry requests. Instead of the required three-month review period, CrVI authorization requests have taken an average of 14.5 months, leading to annulled decisions, compliance uncertainty, and supply chain disruptions. An EU ombudsman audit found procedural issues and data quality concerns, prompting calls for a more efficient, transparent process. This led to a full restriction as the preferred solution.

Question 11

What will the new hexavalent chrome restriction cover?

Accepted Answer

The expected restriction will likely apply to articles containing CrVI compounds, especially those with components that may come into direct and prolonged contact with the skin. This would expand on the existing restriction under REACH Annex XVII, which currently prohibits leather articles containing CrVI at concentrations of 3 mg/kg (0.0003%) or higher. The new rule could significantly impact industries such as automotive, aerospace, and defense manufacturing.

Question 12

How can manufacturers prepare for the CrVI REACH restriction?

Accepted Answer

Manufacturers should take proactive steps to ensure compliance before the restriction is finalized. This includes:Engaging suppliers to identify any CrVI usage in the supply chainExploring alternative materials and coatings to replace CrVI substancesMonitoring ECHA updates to stay ahead of compliance deadlinesImplementing a REACH compliance strategy to prevent costly disruptions

Question 13

What is supply chain sustainability management (SCSM)?

Accepted Answer

Supply chain sustainability management (SCSM) is a proactive approach to achieving long-term sustainability and reducing risks in manufacturing supply chains. It focuses on transparency; compliance with environmental, social, and governance (ESG) requirements; and encouraging responsible sourcing practices.

Question 14

Why is a continuous focus on SCSM critical?

Accepted Answer

Supply chain sustainability is a continuous journey and not a one-time effort. Companies need to commit to ongoing improvement and regularly reassess their strategies to keep up with evolving challenges. A new supplier, new regulation, or new customer can introduce a new set of sustainability risks that may require new processes. An outdated (or stagnant) program can put you at risk of falling out of compliance when new substances are added to a regulation, or impact your ESG rating.

Question 15

Why is SCSM important for businesses today?

Accepted Answer

Supply chain sustainability management is vital because of increasing regulatory requirements, customer expectations, and competitive pressures. It helps manufacturers mitigate risks like compliance penalties, supply chain disruptions, and reputational damage while enabling better data-driven decisions and maintaining operational continuity.Supply chain sustainability management must be integrated into the core business strategy and operations. This includes setting measurable goals, tracking progress, and making supply chain sustainability a reportable key performance indicator for the company.

Question 16

What role do leaders and executives play in SCSM?

Accepted Answer

Supply chain sustainability management is not just the realm of compliance and sustainability professionals. Leadership plays a pivotal role in your SCSM program too. Executives must champion sustainability initiatives and embed this value at all levels of the organization.Many companies make ambitious sustainability commitments, but struggle to implement the necessary changes to achieve them without leadership buy-in. Leaders can help an SCSM program overcome factors like lack of internal resources, difficulties in planning, and internal resistance to change.

Question 17

What are the benefits of implementing SCSM?

Accepted Answer

Supply chain sustainability management provides numerous advantages, including:Protection against compliance penalties and reputational risksIncreased supply chain transparencyScalability to adapt to new regulations and goalsEnhanced product compliance and sustainabilityCompetitive edge through proactive sustainability practices

Question 18

Why is transparency vital in an SCSM program?

Accepted Answer

Regular, honest updates about supply chain sustainability help build trust with your stakeholders and demonstrate a genuine commitment to sustainability. That means your organization needs to be open about successes and failures. Communication with stakeholders is key; engaging stakeholders and customers in two-way conversations helps you understand their expectations.Aligning actions with stated commitments is important to help you avoid greenwashing. Greenwashing is when companies overstate or misrepresent their sustainability efforts to artificially boost their brand. Being accused of greenwashing not only damages your reputation but also erodes public trust in sustainability initiatives more broadly.

Question 19

How can businesses begin implementing SCSM?

Accepted Answer

Evaluate priorities and stakeholders: Define specific goals and regulations that must be addressed.Enable suppliers: Provide training and resources for accurate data sharing.Collect and manage supply chain data: Use automated tools to gather and analyze relevant information.Monitor regulations proactively: Stay ahead of new and changing compliance requirements.

Question 20

What risks do companies face without SCSM?

Accepted Answer

Without SCSM, businesses risk:Compliance penalties due to regulatory violationsSupply chain disruptions from unforeseen sustainability issuesLosing customers and market share due to poor sustainability practicesReputational damage from forced labor, hazardous chemicals, or ESG non-compliance in their supply chains, among other risks

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Tag: Supply Chain Sustainability