UK plans law to force big companies to clean up their supply chains

Britain said on Monday it would start a consultation process on a potential new law which would force big companies to clean up their supply chains by fining them if they used products grown on illegally deforested land.

Prime Minister Boris Johnson, who is due to host the United Nations’ climate summit in November 2021, has promised to “build back greener” from the coronavirus pandemic which caused its economy to shrink by a fifth in the second quarter.

Under the proposed new legislation, larger companies which operate in Britain would need to show that any commodities they used in their supply chain, such as cocoa, rubber, soy and palm oil, are produced in accordance with local laws, or face fines.

The new law would help deter the destruction of rainforest in order to grow agricultural products elsewhere in the world, said the government’s Department for Environment, Food and Rural Affairs in a statement, adding that the level of fines would be set at a later date.

“There is a hugely important connection between the products we buy and their wider environmental footprint, which is why the government is consulting today on new measures,” said international environment minister Zac Goldsmith.

Many big companies already have sustainable sourcing policies in place for commodities.

Consumer goods giant Unilever, for example, has a commitment to source 100% of its palm oil, which is used in cooking, snack foods, soaps and shampoos, from sustainable sources. The consultation will run for six weeks.

Britain said it would bring in legally binding targets on air quality, waste reduction, biodiversity and cleaner water as part of efforts to combat climate change, improve the environment and rebuild the economy.

The targets will form part of the environment bill, introduced last year and set to resume its passage through parliament soon, which will force the current and future governments to focus on environmental improvements.

Targets will be set in the four areas of air, waste, biodiversity and water, the Department for Environment, Food and Rural Affairs said on Wednesday.

A new environmental watchdog, the Office for Environmental Protection, will report annually on the government’s progress against the targets. It is also set to oversee the country’s move towards its 2050 net zero-emissions target.

Britain was the first G7 country to commit to a net zero greenhouse gas emissions target for 2050, and will host the United Nations’ climate summit in November 2021 after it was delayed from 2020 by the pandemic.