Procurement glossary

GlossaryCompliance

CBAM

The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation that requires importers to pay for the carbon emissions embedded in high-emission goods — like cement, steel, and aluminum — brought into the EU. It aims to prevent "carbon leakage" by putting EU and non-EU producers on equal footing when it comes to carbon costs.

GlossaryCompliance

CSRD

The Corporate Sustainability Reporting Directive (CSRD) requires companies to report on their environmental, social, and governance (ESG) performance, replacing the earlier NFRD with stricter, more comparable disclosure standards. It's rolling out in phases from 2024 to 2026, starting with large companies already covered by the NFRD and extending to listed SMEs.

GlossaryCompliance

EUDR

The EU Deforestation Regulation (EUDR) requires companies to prove that commodities like soy, palm oil, coffee, cocoa, cattle, and timber — and products made from them — placed on or exported from the EU market are deforestation-free. It applies to companies of all sizes, EU-based or not, and carries fines of up to 4% of annual revenue for non-compliance.

GlossaryCompliance

EUFLR

The EU Forced Labor Regulation (EUFLR) bans the sale, import, and export of products made using forced labor anywhere in their supply chain. It applies to companies of every size and sector selling into the EU, with full enforcement — including the withdrawal and destruction of non-compliant goods — from December 2027.