The REP Wrap: EFRAG publishes its own VSME statement

Your weekly summary of corporate sustainability news.

EFRAG has published its own sustainability statement in line with its Voluntary Standard for SMEs (VSME). The process helped the body identify “several challenges commonly encountered by SMEs preparers” when using its standards, it said, which will inform future work. Over the coming months, EFRAG said it would update the VSME digital template and converter to include customisation features, including options for colours, logos and footnotes. 

A coalition of influential anti-slavery organisations has produced “a joint strategic vision for the UK Government”, which centres on a proposed Mandatory Human Rights Due Diligence and Forced Labour Ban Act. The law, which would mirror the EU’s Corporate Sustainability Due Diligence Directive, would also introduce “robust tariff legislation to prevent goods tainted by forced and child labour from entering or leaving the UK market”.

The Retail Soy Group has launched a model policy to help firms with their sustainable soy sourcing. The document seeks to translate new guidance from the Accountability Framework initiative into “practical sourcing requirements companies can apply across complex soy supply chains”. It covers policy language, governance, supplier engagement, traceability, monitoring systems and grievance mechanisms. 

Octopus Energy Generation has signed a deal it claims will enable 50 million tonnes of carbon removal over the next 40 years. The renewables firm plans to invest $500m in afforestation and reforestation projects by public benefit company Living Carbon, which turns old mining sites and degraded farmland in the US into carbon sinks.  Meanwhile, Boeing has secured another 20,000 tonnes of permanent carbon dioxide removals. The firm said it had assessed more than 200 projects before selecting six from Brazil, Bolivia, Namibia and India.

The European Commission plans to further simplify EU laws, including through a process of “regulatory deep cleaning”. It will aim to make rules easy to understand, apply and enforce, it said this week, and tackle inconsistent and overlapping requirements. The Commission will start with 12 priority areas, including climate, energy, the environment, transport, agriculture, health and food safety, free movement of goods, financial services, customs, taxation and permitting. 

Analysis by the University of Cambridge has found that the use of carbon credits has helped to slow tropical deforestation, despite widespread greenwashing allegations in the space. An assessment of 44 REDD+ projects found most were effective at preserving forests, and that it is possible to credibly estimate the impact of such projects. However, it also found that 10-times too many credits were issued for the projects, meaning the impacts were ultimately overstated. Many companies have backed away from supporting REDD+ projects because of high-profile scandals about their credibility.