Qualtrics：奢侈品可持續(xù)立法的未來

POSITIVELUXURY

ESGPOLICYGUIDE

ESGPOLICYGUIDE

THEFUTUREOF

SUSTAINABILITYLEGISLATION

FORLUXURY

NOVEMBER2023UPDATE

Baker

Mckenzle.

POSITIVELUXURY

ESGPOLICYGUIDE

CONTENTS

.Introduction

LegislationRoadmap

.Part1:Environmental

EUGreenDeal

UKPlasticPackagingTax

Part2:Social

HumanRightsandForcedLabour

DueDiligenceandBanonGoodsinEU.Part3:Governance

MandatoryDisclosure

StrategyforFinancingTransitiontoa

SustainableEconomy

EUESGReporting

EuropeanGreenBonds

●Part4:Greenwashing

.Citations

●Acknowledgements

3

5

7

18

22

26

29

30

POSITIVELUXURY?20232

ESGPOLICYGUIDE

INTRODUCTION

POSITIVELUXURY

“Againstabackdropofextremeweathereventswithfar-reachingeffectsonpopulationsacrosstheglobe–aclearsignthatclimatechangeisrealandhavingasignificantnegativesocial

impact–andtherealisationthatwearefar

fromreachingthegoalsoftheParisAgreement,nowmorethaneverthereisaneedfor

collectiveactiontoquicklycorrectcourse.

RegulatorsacrossallregionshaverecognizedtheneedforallorganisationstoimprovetheirESGperformanceintheirownoperationsandbeyond–includingthroughtheirrespective

valuechains,whethersimpleorcomplex.

WhilenavigatingmultiplesetsofESG

regulationscanbechallenging,onething

iscertain–byenhancingtransparencyandaccountabilityforESGperformance,wewillbeabletobettermeasureprogressandtakethenecessarystepstoreversetheeffectsofclimatechange–andprovidehopefor

futuregenerations.”

AlyssaAuberger

ChiefSustainabilityOfficer,

BakerMcKenzie

POSITIVELUXURY?20233

POSITIVELUXURYINTRODUCTIONESGPOLICYGUIDE

FollowingthesuccessoftheESGPolicyGuideinJanuary2023,wehaveupdatedthisbulletintoreflectthefast-moving

developmentsinthisarea,andprovide

anoverviewofkeyupcomingsustainabilitylegislationtheluxurysectorneedsto

beawareofinordertohelpmitigateclimate,materialandfinancialriskstotheirbusiness.

Sustainability-relatedlegislationishereandtargetsareclear.Businessesmusttakeactionasthetideischanging,andallbusinessesmustworktoensuretheycanridethewave,ratherthanbesweptupinthisimminentcurrent.

Tohelpyounavigatethischangingtide,

wehavepartneredwithBakerMcKenzietoexplainkeylegislativechangesacrosssustainability,withafocusonenvironment,social,governanceandgreenwashing,

lookingatnear-termsustainability-relatedrisks,aswellaswhatthenextfouryearswillbringasoutlinedinourtimeline.

66

Environmental,social,and

governance(ESG)concerns

haverisentothetopof

businessagendasinalmost

everyindustryaroundthe

world,andinparticularinthe

consumergoodsandretail

industry.TheESGchallenges

andopportunitiesthat

consumergoodscompaniesareconfrontedwithspantheentirevaluechain–fromrawmaterialsourcing,manufacturing,

andworkingconditions,to

transportation,sales,marketing,andproductcircularity.WhilsttheESGregulatorycompliancerequirementsthatlieahead

presentsignificantchallenges,

consumerbrandsalsohave

anunprecedentedopportunity

toshapeasustainablefuture.

Wearethrilledtocollaborate

withPositiveLuxuryonthis

reportandprovideinsightinto

someofthekeypoliciesand

regulationsimpactingESG.

KurtHaegeman,

GlobalChair,

ConsumerGood&

RetailIndustryGroup,

BakerMcKenzie

POSITIVELUXURY?20234

POSITIVELUXURY

ESGPOLICYGUIDE

LEGISLATION

ROADMAP

Increasingregulatoryactionisgrowingtheneedforconsistent,comparableand

transparentinformationonclimateandotherenvironmental,socialandcorporate

governanceinformation.

TheESGregulatorylandscapeisarapidlyevolvingareathatbusinessesneedtostayontopof.BelowisanoverviewofsomeoftherecentandproposedESGregulationsinkeyjurisdictions.

20212022

UKEnvironmentAct

UKPlasticPackagingTax

EUGreenDeal–Environmental

UKTaskForceonClimate-RelatedFinancialDisclosure

PolicyPackage

(TCFD)Mandate

EUBiodiversityStrategy2030

EUProposedForcedLabourRegulation

NationallyDetermined

EUREACHlegislationRegistration,Evaluation,Authorisation

Contributions–

andRestrictionofChemicals

GlasgowPactNetZero

USInflationReductionAct

USUyghurForcedLaborPreventionAct

USFashioningAccountabilityandBuildingRealInstitutionalChange(FABRIC)Act

California–TheGarmentWorkerProtectionAct

California–EnvironmentalSuite:ab1279,ab1757,SB846,SB905,SB1020,SB54,SB1020,SB11337

2023

EUCorporateSustainabilityReportingDirective(CSRD)

EUDeforestationRegulation

EUGreenClaimsDirective(Proposal)

ProducerResponsibilityObligations(PackagingWaste)Regulations2023

EUESGRatingsRegulation(Proposal)

USSecuritiesandExchangeCommission(SEC)CorporateClimateDisclosures(Expectation)

WaterManagementSBT(ScienceBasedTargets)

FLAG(Forest,LandandAgriculture)SBTandNature

ValuationSBTMandate(Prediction)

TaskforceonNature-relatedFinancialDisclosures(TNFD)

EUTextileLabellingRegulation(ProposedRevisions)

EUDirectiveonCommonRulesPromotingtheRepairofGoods(Proposal)

EURegulationonPreventingPelletLossestoReduceMicroplasticPollution(Proposal)

POSITIVELUXURY?20235

POSITIVELUXURYLEGISLATIONROADMAPESGPOLICYGUIDE

20242025

EUCorporateSustainabilityDueDiligenceDirective(CS3D)

TCFDSWITZERLAND(Reporting

requirementsexpectedtocommencein2025)

TNFDMandateforlistedLarge

Companies(Expectation)

UNGlobalPlasticsAgreement

Canada–FightingAgainstForcedLabourandChildLabourinSupplyChainsAct

USSecuritiesandExchangeCommission(SEC)

CorporateClimateDisclosures(Expectation)

WaterManagementSBT(ScienceBasedTargets)

FLAG(Forest,LandandAgriculture)SBTand

Nature

ValuationSBTMandate(Prediction)

TaskforceonNature-relatedFinancialDisclosures

(TNFD)

ProducerResponsibilityObligations(Packaging

Waste)Regulations2023

20262027

TNFDMandatoryfornon-listed

largecompanies(Expectation)

EnergyIntensiveTaxes

(Prediction)

EUDigitalProductPassports

EUCorporateSustainabilityDue

DiligenceDirective(Member

Stateslegislatenationallaws)

EUDigitalProductPassports

POSITIVELUXURY?20236

POSITIVELUXURYPARTONE:ENVIRONMENTALESGPOLICYGUIDE

PARTONE:

ENVIRONMENTAL

EUGREENDEAL

WhatistheEUGreenDeal?

TheEuropeanGreenDeal,launchedin2019,istheEuropeanUnion’sambitiousdecarbonisationstrategy.TheGreen

Dealsetsthetargetofacarbon-neutralEUby2050(i.e.,‘net-zero’–any

residualemissionsintheEUwould

becompensatedbycarbonremovals)

andaimstomainstreamclimateand

environmentalobjectivesintoallsectorsoftheeconomythroughlegislativeaction.

TheGreenDeal,initself,isneitherapieceoflegislationnoraspecificpolicybutisacollectivetermthatcovers

measuresandregulationsintroducedaspartofthisstrategy.Suchmeasures

arealreadybeingtremendously

impactfulforconsumersand

companiesthroughouttheEU.

WhichfeaturesoftheGreenDeal

aremostrelevanttotheluxuryandfashionsector?

OneoftheGreenDeal’sobjectivesis

thepromotionof“l(fā)ongerlastingproductsthatcanberepaired,recycledand

re-used”.Toachievethisaim,theEuropeanCommissionhasadoptedtwooverarchingpolicyplans:

theCircularEconomyActionPlan,

whichintroducesanumberoflegislativeandnon-legislativeactionstoimprovethecircularityofproductsintheEU

market,and

theEUStrategyforSustainable

andCircularTextiles,whichprovidesaframeworkforthesustainable

productionandconsumptionoftextiles.

Underthesetwoplans,thefollowing

legislativeinitiativeswillparticularlyaffectthebusinessoperationsoftheluxuryandfashionsector:

1.TheEcodesignforSustainableProductsRegulation,whichhasbeentabledasadraftandisbeingnegotiatedamongtheEUco-legislators(

clickhere

toview).

2.EUruleson‘greenclaims’,including

aproposalonempoweringconsumersinthegreentransition,whichhas

beentabledasadraftandcurrently

beingnegotiatedamongtheEUco-

legislators,andtheGreenClaims

Directivetoaddressenvironmental

claimsmadebycompaniesandto

combatgreenwashing,whichhasbeenproposedasadraft(

clickhere

toview).

3.TheCorporateSustainabilityDue

DiligenceDirectiveaddressesvalue

chain-relatedduediligencerequirementsandtheobligationthatimpacted

companiesadopt–andpossibly

implement–aclimateneutralityplan.

4.ArevisionofthePackagingandWasteDirectiveandtheWasteFramework

Directive,whichhasbeentabledasadraft.

5.ArevisionoftheTextileLabelling

Regulationtointroducerequirementsforphysicalanddigitallabellingoftextiles,includingsustainabilityandcircularity

parameters.

6.TheEUDirectiveonCommonRules

PromotingtheRepairOfGoods,seekstoachievetheproductsustainability

andcircularityobjectivesofthe

EuropeanGreenDealbygranting

consumerstherighttorequestthe

repairofproductsthatfallunderits

scope.Atpresent,theproposalisnot

specificallydirectedattextiles,however,theconceptof“righttorepair”could

eventuallybeappliedtotextiles.

POSITIVELUXURY?20237

POSITIVELUXURYPARTONE:ENVIRONMENTALESGPOLICYGUIDE

TheproposedEcodesignforSustainable

ProductsRegulation(Ecodesign

Regulation)willreplacetheexisting

Ecodesignframeworkwiththeaimof

significantlyimprovingthecircularityand

energyperformanceofproducts.Itextendsthescopeoftheexistingframeworkto

coverthebroadestpossiblerangeof

products,meaningthattextiles,furniture

andalargenumberofotherproducttypesareinlinetobecomesubjecttoEcodesignrequirementsinthefuture.Tobringa

productontotheEUmarket,manufacturersmustensurethatitcomplieswithspecificcriteria,whichwillvarydependingonthe

producttyperelatingtoenergyefficiency,theemissionofharmfulsubstances(suchasCO2),recyclability,durabilityandthe

recycledcontentofproducts,among

others.Toevidencetheseproperties,

productswouldhavetobeaccompaniedbyaDigitalProductPassport(seeboxbelow).Theserequirementswillnodoubtprove

impactfulnomatterwhereabusinessispositionedinthevaluechain.

WhatisanEUDigitalProduct

Passport?

TheEcodesignforSustainable

ProductsRegulationregimewill

requirecertainproductssoldintheEUmarkettohaveadigitalproductpassport(DPP).

ADPPisadigitalrecordofauniqueproduct’scompletelifecycle,

storingkeytraceabilitydataabout

theproduct.Thisincludesproduct

informationacrosstheentirevaluechain,includingdataonrawmaterialextraction,production,recycling,etc.Thisdataaimstosupportthecirculareconomy,decarbonization,and

sustainability.

Requirementsforthefirstproduct

groupstohaveaDPPareexpectedtobeadoptedbetween2024and2027,withanotherlargerangeofproductsexpectedtobecoveredbetween2028and2030.TheEuropeanCommissionhasalreadyspecifiedeightpriority

industries,includingtextiles,

electronics,plastics,andchemicals,initsCircularEconomyActionPlan.

Ofparticularsignificance,theproposed

EcodesignRegulationcontainsmeasures

aimedatpreventingthedestructionof

unsoldconsumergoods.Largebusinesses

discardingunsoldproductswillhaveto

reportonthequantitiesdiscardedand

thereasonswhy,whiletheEuropean

Commissionwillalsohavepowerstoban

thedestructionofunsoldconsumergoods

outright,whereitprovestobeparticularly

problematicforcertainproductcategories.

Adirectbanonthedestructionofunsold

textiles,footwearandapparel,aswellas

electricalandelectronicequipment,isalso

beingdiscussedatpoliticallevelandmay

beincludedinthefinallegislativetext.

InMarch2022,theEuropeanCommission

publishedaproposalforaDirective

“empoweringconsumersforthegreen

transition.”Theaimofthisproposalis

tocombatgreenwashingpractices,by

providingconsumerswithbetterinformation

onthedurabilityandrepairabilityof

productsontheEUmarket,aswellas

theproduct’simpactontheenvironment.

Theproposalalsoprohibitstheuseof

genericenvironmentalclaimssuchas

“eco”or“green”wheretheexcellent

environmentalperformanceoftheproduct

cannotbedemonstratedorvalidated,

aswellasrestrictingtheabilityof

companiestocreatetheirownvoluntary

sustainabilitylabels.Tofurthersupport

thisobjective,theEUhasalsorecently

proposedtheGreenClaimsDirective

requiringcompaniestosubstantiate

claimsrelatingtothesustainabilityof

theirproducts.Thisproposalbuildsupon

provisionsalreadyinplaceundertheUnfair

CommercialPracticesDirective(UCPD).

Asaresultoftheseproposals,theluxury

andfashionsectorwillberequiredto

bemoretransparentandmorecautious

regardinganyclaimsmadeastothe

sustainabilityofaparticularproduct.

ThedraftCorporateSustainabilityDue

DiligenceDirective(CS3D)wouldrequire

theadoptionandimplementationof

effectiveduediligencepoliciestoidentify,

prevent,mitigateandbringtoanend

actualandpotentialhumanrightsand

environmentalharmsincompanies’

businessoperationsandvaluechains

(bothupstreamanddownstream).Italso

POSITIVELUXURY?20238

POSITIVELUXURYPARTONE:ENVIRONMENTALESGPOLICYGUIDE

aimstoimposenewdutiesoncompany

Inparallel,theEuropeanCommission

directorsinrelationtodecisionstheymake

alsolauncheditsTextilesEcosystem

thatimpactsustainabilitymatters;although

TransitionPathway–Co-creationand

thisisstillcontroversialatlegislativelevel.

co-implementationprocess(

seehere

)

Theluxuryandfashionsector,byvirtue

invitinginputandcollaborationfromEU

ofitstypicallylengthyandcomplexvalue

textileecosystemstakeholdersinthe

chains,andoftenreliantonhigh-impact

co-creationofatransitionpathwayfor

textiles,willundoubtedlybesignificantly

thetextilesecosystem,andidentifying

affectedbytheCS3D.Moreover,luxury

whatspecificactionsandcommitments

andfashioncompaniesimpactedwillberequiredtoadoptaplantoensure

areneeded.

thattheirbusinessmodelandstrategy

On30November2022,theEuropean

is“compatiblewiththetransitiontoa

Commissionpublisheditsproposalfor

sustainableeconomyandwiththelimiting

anewregulationwhichwillreplacethe

ofglobalwarmingto1.5°Cinlinewith

currentPackagingandPackagingWaste

theParisAgreement”.Withtheproposed

Directive94/62/EC.Theregulation

directivestillbeingnegotiatedamongthe

proposestoreducetheimpactof

co-legislators,thepoliticaldebatecenters

packagingandpackagingwasteonthe

aroundwhetherthereshouldbeaspecific

environmentbymakingallpackaging

obligationoncompaniestoimplement

intheEUreusableorrecyclableinan

theseplans,whichwouldthenalsobe

economicallyfeasiblewayby2030.

subjecttoadministrativepenaltiesandcivil

Companieswillneedtocomplywith

liability.Anotherimportantaspectstillbeing

certainsustainabilityandmanufacturing

deliberatediswhethersuchplansshould

requirements,aswellaslabelling,marking,

bedirectlylinkedtothecompensationof

andinformationrequirements.Packaging

directorsormanagersofthecompanies

manufacturerswillalsoneedtosubmitan

adoptingthem.

EUDeclarationofConformityconfirmingthatthepackagingcomplieswiththe

TheWasteFrameworkDirective,

applicablerequirements.Allpackaging

whichwastabledbytheEuropean

placedontheEUmarketwillbeimpacted,

Commissionon5July2023,proposesto

withdifferentobligationsapplicableto

introducemandatoryExtendedProducer

differentplayersinthesupplychain–

Responsibility(EPR)requirementsfor

packagingmanufacturers,suppliers,

textilesinallEUMemberStates,similar

importers,distributors,andfulfillment

totheschemesalreadyinplaceforWasteElectricalandElectronicEquipment

serviceproviders.

(WEEE)andbatteries.Morespecifically,

Thelegislationiscurrentlyinproposalform

thedirectiveproposesthatEPRbe

andneedstobeadoptedbytheEuropean

imposedonhouseholdtextileproducts,

ParliamentandCouncilbeforeitcanenter

articlesofapparel,certainclothing

intoforce.Triloguenegotiationsonthe

accessoriesandfootwear.MemberStates

contentofthefinaltextareexpectedto

wouldberequiredtoestablisharegister

ofproducersofcoveredproductstomonitortheircompliancewiththerequirements

oftheEPR,whichwouldbeorganized–andmanyotherEPRscheme–throughadesignatedproducerresponsibility

organizationwhichwouldnotablyhavetoestablishaseparatecollectionsystemforusedandwastetextile.

commenceinthecomingmonths.

POSITIVELUXURY?20239

POSITIVELUXURYPARTONE:ENVIRONMENTALESGPOLICYGUIDE

Howwillthesemeasuresaffectthe

importofluxuryproductstotheEU?

TheGreenDealwillhavemultipleeffectsonEUimportsofluxuryproducts.For

example,undertheEcodesignRegulation,importersarerequiredtoensurethatanyproductenteringtheEUiscompliantwithEcodesignrequirementsandhasaverifiedDigitalProductPassport(seetextboxonpage8).CustomsofficialsareempoweredtorefusetoallowproductswithoutDigitalProductPassportsintocirculationin

theEUmarket.Inaddition,underthe

CS3D,acompanymustaccountforthe

environmentalandhumanrightsharms

arisinginitsentirevaluechain–regardlessofwhetherpart(orall)ofthevaluechain

islocatedoutsideoftheEU.

What’snext?

Manyoftheproposalsidentified(includingtheEcodesignRegulation,theCS3D

andgreenclaimslegislation)havenot

yetbeenformallyadoptedatEUlevel,

andthereforemustgothroughtheEU

legislativeprocessbeforeenteringinto

force.Agreementislikelytobereachedbytheendof2023,andatlatestbyearlyspring2024.Therefore,itwillbeimportantthattheluxuryandfashionindustry

closelymonitorsthedevelopmentoftheselegislativeproposals,makesitsvoice

heard,andadequatelypreparesforfuturecompliancerequirements.

OTHERAPPLICABLE

LEGISLATION

US

FashionSustainabilityandSocial

AccountabilityAct–SBS4746:

ThisNewYorkstatebillrequiresfashion

companieswithmorethanUSD100million

inrevenuesdoingbusinessinNewYorkto

maptheirsupplychainsandaddressthe

humanrightsandenvironmentalimpacts

oftheiroperationsandintheirsupply

chain,includingthoserelatedtocarbon

emissions,waterfootprint,andworker

wages.Ifpassed,thiswouldbethefirst

USlawwithsustainabilityrequirements

focusedonlargefashioncompanies.

FURTHER

INFORMATION

EUPublishesDraftLegislationto

AddressImportsofCommodities

LinkedtoDeforestationandForest

Degradation

BakerMcKenzie

(6Dec2021)

EU:EuropeanParliamentadopts

reportoncorporateduediligenceand

accountability

BakerMcKenzie(March2021)

EU:Wide-reachingproposalstomake

productsmoresustainableandprotect

consumersfromgreenwashing

BakerMcKenzie(20April2022)

EU:TheParliamentadoptsnewDue

DiligenceRequirementstoTackle

DeforestationandForestDegradation

BakerMcKenzie(5May2023)

EuropeanUnion:Commissiontables

proposalforGreenClaimsDirective

BakerMcKenzie(24March2023)

POSITIVELUXURY?202310

POSITIVELUXURYPARTONE:ENVIRONMENTALESGPOLICYGUIDE

PLASTIC&

CIRCULARITY

Foralongtimeplasticsandtheirimpact

onourenvironmentalandhealthhasbeenaconcernforenvironmentalistsandpolicymakers.Asaresult,weareseeingmorestringentlegislationaddressingthistopic,andwiththeintroductionoftheUNGlobalPlasticAgreement(seebelow,onpage12),thiswillbeacontinuingtrend.

UK’SPLASTIC

PACKAGINGTAX:

WHATBUSINESSESNEEDTOKNOW

Whatistheplasticpackagingtax?

TheUK’sPlasticPackagingTax(PPT),

whichcameintoforceon1April2022,

affectsplasticpackagingthatcontains

lessthan30%ofrecycledplasticcontent.Asof1April2023,arateofGBP210.82permetrictonneisappliedonsuch

packagingmanufacturedorimportedintotheUK.ThePPTaimstoencouragetheuseofmoresustainableplasticpackaging,increasetheuseofrecycledplastic,andhelpreduceplasticwaste.

.

Whodoesitapplyto?

UKmanufacturersandimportersofplasticpackagingarerequiredtoregisterwiththeHMRevenue&Customs(HMRC)andpaythePPTiftheyeither:

·ExpecttoimportintotheUK,or

manufactureintheUK,10ormore

tonnesofplasticpackagingcomponentsinthenext30days.

·HaveimportedintotheUK,or

manufacturedintheUK,10ormore

tonnesofplasticpackagingcomponentsinthelast12months.

Whyshouldbusinessesconduct

duediligenceoftheirsupplychain?

AcrucialaspectofthePPTregimeisthat

downstreambusinessesthatbuyplastic

packagingonwhichthetaxshouldhave

alreadybeenpaidmaybefoundjointly

andseverallyliableforanyunpaidtax.

Inconnectionwiththis,theHMRC

publishedguidanceon30December2021

onduediligencechecksbusinessesshould

undertakeinconnectionwiththePPT.

Aregroupregistrationsallowed?

Yes.Groupsofcompaniescanappoint

aUK-establishedrepresentativeto

registerandpayPPTonbehalfofthe

group.However,allmembersofthegroup

willbejointlyandseverallyliablefor

anyunpaidPPT.

THEPPTHASBEEN

PROMOTEDBYTHE

UKGOVERNMENTAS

AWORLDLEADING

MEASUREANDOTHER

JURISDICTIONSARE

ALREADYPUTTING

INPLACESIMILAR

REGIMES.WEEXPECT

PLASTICSREGULATION

TOCONTINUEGROWING

WORLDWIDEINCOMING

YEARSGIVENTHE

CURRENTFOCUSON

SUSTAINABILITY.

GrahamStuart

Partner,BakerMcKenzie,London

POSITIVELUXURY?202311

POSITIVELUXURYPARTONE:ENVIRONMENTALESGPOLICYGUIDE

WhatrecordsandaccountsarerequiredtoberetainedforpurposesofPPT?

Manufacturersandimportersshould

keepaccountsandrecordstosupporttheinformationsubmittedintheirquarterlytaxreturns.ToviewtheHMRCGuidanceonrecordretention,

clickhere

.

Whatarethepenaltiesandwhatarethekindsofenforcementthat

wecanexpect?

Non-paymentofPPTmayresultinthe

impositionofcriminalandcivilpenalties.Intermsofenforcement,HMRCfocusesondeliberatetaxevasionandtargets

willfulorgrosslynegligentnon-complianceandalsoscenarioswherecompanies

deliberatelyevadetheapplicationofthetax,suchasbusinessesartificiallysplittingtofallbelowthedeminimisthresholdofproducingorimporting10tonnesof

plasticpackagingannually.

HowwillthePPTimpactbusinessesintheluxurysector?

PPTwilldisruptsupplychainsand

challengetheoperationsofmany

businessesintheluxuryindustry—

especiallythoseinfashionwhouse

clotheshangers,kimbletags,plastic

labels,giftwrappingsuchasribbonandstickytape.Beautybusinesseswillalsobeforcedtorethinkprimarypackagingchoicessuchascreamcontainersandbottles.Businesseswillalsohavetodealwithadministrativereportingobligationsandwillhavetofactorinthecosts

associatedwiththeimplementationofthePPT,suchastrainingemployees,developingthenecessaryreportingframeworktocompletetherequiredquarterlytaxreturns,andkeepingtheappropriateaccountsandrecords.

FURTHER

INFORMATION

ForfurtherinformationonthePPT,

clickhere

and

here

ToviewBakerMcKenzie’swebinaronthePPT,

clickhere

OTHERRELEVANT

LEGISLATION

Onerecentproposalwhichisrelevant

tothecosmeticsindustryisthedraft

amendingAnnexXVIItoRegulation

(EC)No1907/2006oftheEuropean

ParliamentandoftheCouncilconcerning

theRegistration,Evaluation,Authorisation

andRestrictionofChemicals(REACH)as

regardssyntheticpolymermicroparticles,

tolimittheuseofintentionallyadded

microplasticsinvariousproducts.This

draftwaspublishedinSeptember2022

andproposesarestrictiononleave-on

cosmetics,involvingskincareproducts,

perfume,andlipcareproducts.Oncethe

newregulationisimplemented,theEUwill

completelyprohibittheuseofmicroplastics

inallcosmetics.Thecurrenttransition

periodis6-12years.

TheEuropeanCommissionhasalso

proposedmeasurestopreventthe

unintentionalreleaseofplasticpellets,

therawmaterialusedforproducing

allplastics,intotheenvironment.The

proposallaysoutprecautionarymeasures

foroperatorshandlingplasticpelletsand

willimpactbothEUandnon-EUoperators.

UNGlobalPlasticTreaty

InMar