Environmental, social and governance | Regulatory Outlook June 2022

Government responds to consultation on implementing due diligence requirements for forest risk commodities in UK supply chain

On 1 June 2022, Defra published its response to its December 2021 consultation on implementing due diligence requirements for forest risk commodities introduced under the Environment Act 2021.

The requirements are intended to help tackle illegal deforestation through the UK's international supply chain by prohibiting forest risk commodities or products derived from that commodity. 

In its response, the government has confirmed its intention is to lay secondary legislation to implement due diligence regulations in the Environment Act at the earliest opportunity. The secondary legislation will be brought forwards for the forest risk commodities in scope, which are cattle (beef and leather), cocoa, coffee, maize, palm oil, rubber and soy. The responses collated will also help the government to design this legislation and guidance, which will include details on how long businesses will have to prepare for regulations. 

Businesses that will be caught within the scope of the legislation will be large businesses, with a turnover over a specified threshold. The government confirmed that it will align the definition of turnover in secondary regulations with the Companies Act, and set a threshold based on turnover in the previous financial year.

No plans for the UK to replicate the EU's proposal for Corporate Sustainability Due Diligence Directive

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