Global Supply Chain Regulations: What Businesses Need to Know

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Overview

As regulatory requirements expand across environmental, social, and governance domains, organisations face increasing expectations to demonstrate complete supply chain visibility and verifiable due diligence. Compliance now demands not only accurate data, but also the ability to assess supplier practices, manage risk proactively, and report with confidence. This shift is driving a move toward integrated, technology-enabled compliance systems that allow businesses to align with global standards while strengthening operational resilience.

At NQC, we help businesses stay ahead of regulatory change — combining AI-driven insights with defensible compliance expertise to support responsible, resilient, and transparent supply chains.

Key Regulations Shaping Global Supply Chains

From carbon accountability and human rights to resource traceability and ethical production, a wave of new EU regulations is reshaping global supply chain expectations. The CBAM, CSDDD, CSRD, EUBR, EUDR, EUFLR and UFLPA collectively require businesses to demonstrate transparency, measure their environmental and social impacts, and maintain verifiable data across their operations and supply chains. Together, they mark a decisive shift toward responsible, data-driven supply chain governance.

Carbon Border Adjustment Mechanism (CBAM)

The EU’s CBAM introduces a carbon price on imports of certain carbon-intensive goods, aligning them with the EU Emissions Trading System. It aims to prevent carbon leakage and encourage cleaner production globally. Businesses must calculate embedded emissions and submit verified data through a phased compliance schedule.

Learn how NQC helps map emissions data and automate supplier reporting.

Corporate Sustainability Due Diligence Directive (CS3D / CSDDD)

The CSDDD requires large companies to identify, prevent, and mitigate adverse human rights and environmental impacts throughout their value chains. Due diligence obligations extend to suppliers and business partners globally, driving new expectations for responsible sourcing and governance.

NQC supports end-to-end due diligence and risk detection across complex supply networks.

Corporate Sustainability Reporting Directive (CSRD)

The CSRD expands sustainability reporting obligations to thousands of companies, introducing mandatory disclosure under the European Sustainability Reporting Standards (ESRS). It brings ESG data to the same level of scrutiny as financial information — demanding robust, verifiable, and standardised reporting processes.

NQC enables data-driven ESG reporting and supplier performance analytics.

European Batteries Regulation (EUBR)

The EUBR governs the entire lifecycle of batteries — from design and sourcing of raw materials to recycling and carbon footprint disclosure. It enforces traceability, due diligence, and sustainability criteria for all battery producers and importers entering the EU market.

NQC helps manage supply chain traceability and supplier compliance in line with EUBR requirements.

EU Deforestation Regulation (EUDR)

The EUDR prohibits the import and trade of products linked to deforestation or forest degradation. Companies must implement due diligence systems to ensure their goods are deforestation-free and compliant with local laws in production countries.

NQC’s SURVEIL solution provides real-time supply chain risk monitoring and supplier verification to support EUDR compliance.

EU Forced Labour Regulation (EUFLR)

The EUFLR bans products made with forced or child labour from entering or being sold within the EU. It requires organisations to maintain traceability, conduct supply chain audits, and verify ethical practices across all tiers of production.

Through advanced AI features and SUPPLIERASSURANCE intelligence platform, NQC helps businesses detect risk indicators and document due diligence effectively.

Uyghur Forced Labor Prevention Act (UFLPA)

UFLPA prohibits the import of goods linked to forced labour in China’s Xinjiang region. It introduces a “rebuttable presumption” that goods sourced from this region involve forced labour, placing the burden of proof on importers to demonstrate compliance.

NQC’s SUPPLIERASSURANCE platform utilises AI-driven analytics and supplier data verification to support UFLPA compliance and mitigate global forced labour risks.

Frequently asked questions

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