Phased implementation from 2027 to 2029.

Requires large companies to integrate human rights and environmental due diligence (HREDD) into their policies, and identify, address, and remediate adverse impacts of their business practices on people and the environment. The directive includes provisions on living income, living wage, purchasing practices and meaningful engagement, and discourages disengagement from suppliers in a cut-and-run manner when issues are identified.

A landmark piece of legislation that recognises sustainable livelihoods as a human right and has the potential to change trade.

Fair implementation is key – farmers and workers cannot be burdened with achieving compliance alone. They need collaboration, training, and financial support.

Companies are responsible for fulfilling their due diligence obligations, but we’re here to assist: Fairtrade Standards are being aligned with the CSDDD, and we promote fair due diligence with a special emphasis on establishing dialogue, collaboration and fair cost sharing between trade partners. We offer training and advice to all certified producer organisations, support business in their risk analysis, have compliance and remediation monitored through FLOCERT audits, and can partner on targeted programmes.

Coming into effect 2025, phased implementation.

Companies are obliged to provide public sustainability and financial reports every year to detail human rights and environmental due diligence measures. These can span across governance and strategy, policies, actions and targets on material impacts, as well as risks and opportunities.

Mandatory sustainability reporting marks an important step towards more transparent supply chains and stronger due diligence systems.

For CSRD reporting to be impactful, it must not be a stand-alone process but part of a company’s broader efforts towards human rights and environmental due diligence. Sustainability reporting should not be a cherry-picking exercise whereby companies report on indicators that serve them the most.

Fairtrade services and standards already support certified producers and businesses to strengthen their due diligence and foster collaboration in supply chains. We have strong expertise to guide companies on how they can comply with reporting requirements when sourcing Fairtrade. A CSRD reporting tool is currently being developed.

Expected to come into effect December 2025.

Bans trade of seven commodities and derivative products into or out of the EU market which cause deforestation or forest degradation and is particularly relevant to Fairtrade cocoa, coffee, and soy supply chains. Companies are required to demonstrate compliance.

When farmers have the right resources and support, they are best placed to conserve forests. According to research , Fairtrade certified cocoa and coffee cooperatives are in a better position when it comes to protecting forests and complying with the EUDR.

Many farmers are not yet equipped to meet the EUDR data reporting requirements and are at risk of being cut off from trade. It is critical that the EU monitors the impacts of the EUDR on farmers and provides accompanying measures.

Low incomes can lead farmers to clearing forest for agricultural production. Any deforestation legislation should also address poverty as a root cause in order to achieve lasting sustainable change.

No certification can replace an enterprise’s own due diligence efforts, but we can assist with expertise and resources: The Fairtrade Standards have built in forest protection requirements that meet or go beyond what is required in the EUDR. We support Fairtrade producers in collecting high quality geolocation data and provide free deforestation risk monitoring services.

Companies have access to the Fairtrade Risk Map to support their risk assessments, and sourcing Fairtrade products can contribute to risk mitigation through standard requirements and by addressing root causes of deforestation.

Coming into effect January 2025.

Aims to strengthen the integrity of organic production by applying the same rules to all organic certified operators within the EU and worldwide.

Credibility and integrity in agricultural production are at the heart of Fairtrade’s work and we welcome efforts to strengthen it. If the new regulation expands the EU organic market, it could present a chance for Fairtrade organic farmers to generate more sales.

Stricter production and audit rules, and the lack of clarity on the requirements, will result in higher costs for producers and might cause a loss of organic certification, reduce sales, and cause the overall EU organic market to shrink. Many Fairtrade farmer organisations growing organic cocoa, coffee, and bananas need more time to become fully compliant. Several supply chains are at risk of being disrupted.

We have intensely advocated for extending the transition period to mitigate potential disruptions, but unfortunately have not been heard.

All parts of the Fairtrade system are currently working make sure that producers, traders, and companies are aware of the implications and can access guidance. Fairtrade International and the certifier FLOCERT inform producers, while producer networks provide training and workshops, and national Fairtrade organisations discuss challenges and possible mitigation strategies with commercial partners.

Expected late 2027.

Aims to ban goods that have been produced with forced labour from access to the EU market. The regulation will apply to all companies, products, and production stages except transport. Authorities will investigate forced labour concerns on a risk basis and companies are required to prove compliance with due diligence obligations.

The regulation shines a spotlight on the widespread and often hidden practices of forced labour and has the potential to disrupt trade that profits from it.

There is a notable risk of forced labour in sectors where Fairtrade works, including cocoa, coffee, tea, sugar, fruits, vegetables, rice, nuts, cotton, and gold.

No certification scheme can tackle the issue alone. Any forced labour legislation should also address root causes such as poverty, low prices, and unfair trading practices.

We have the experience, tools, and expertise to work with producers and companies in addressing forced labour in supply chains – through standards that guide and require the prevention and remediation of forced labour, training and support for producers, and programmes tailored to specific sectors and countries.

ECD coming into effect September 2026.

GCD is still being negotiated and should be adopted by the EU in Q1 2025. 

Both directives aim to tackle greenwashing and will apply to all companies and products. The ECD prohibits generic environmental claims and requires product labels to be based on a certification scheme. The GCD introduces rules on the communication, verification, and substantiation of claims.

The directives have the potential to bring more clarity into an increasingly crowded sustainability landscape, reduce greenwashing, and distinguish trustworthy certification schemes from labels with limited impact.

The exact scope and requirements of the GCD might still evolve. While we have checked compliance of Fairtrade’s environmental claims with the criteria that are currently proposed, another review will be necessary once the requirements are final.

Companies working with product certification will benefit from simplified procedures in verifying their claims. Fairtrade is very well placed to partner with businesses on this. Our marks and the claims behind them are backed up by a transparent, recognised, and robust certification scheme with independent verification and strong governance.