European Sustainability Standards and Norms

1. REACH Regulation (1907/2006)

Although primarily targeting chemicals, REACH influences agriculture produce by regulating substances used in manufacturing food, beverage and tobacco products. Continuous updates to REACH may affect the sustainability standards over time.

2. The European Sustainability Standards (ESRS) related to tobacco. 

ESRS Adoption and Timeline:

On July 31, 2023, the European Commission adopted the Delegated Act on the first set of European Sustainability Reporting Standards (ESRS).

The ESRS are mandated by the Corporate Sustainability Reporting Directive (CSRD – Directive (EU) 2022/2464), which was adopted in December 2022. The Delegated Act and annexes were published in the Official Journal on December 22, 2023. The reporting requirements will be phased in over time for different types of companies:

First Companies:

They must apply the standards in their financial year 2024, with reports published in 2025.

Listed SMEs:

They are obliged to report from 2026, with a voluntary opt-out possibility until 2028. Additionally, they can report using separate, proportionate standards that EFRAG will develop next year.

3. European Green Deal (2019 onwards) 

This ambitious policy framework aims to make the EU climate-neutral by 2050. It influences sustainability standards across all sectors, including agriculture and manufacturing processes. 

• Short-term Goals (2020-2025)

Compliance with Current Regulations: Companies must ensure full compliance with extant directives and provisions, including REACH.

Adoption of Sustainable Practices: Increasing adoption of sustainable agricultural practices, waste management, and adherence to labour rights in the supply chain.

Enhanced Reporting and Transparency: Companies are encouraged to adopt frameworks like the Global Reporting Initiative (GRI) and ISO standards for sustainability reporting. 

• Medium-term Goals (2025-2030)

Strengthening Supply Chain Sustainability: Further integration of fair-trade principles and sustainable practices in the supply chain.

Innovations in Packaging and Waste Reduction: Development and implementation of more sustainable packaging solutions and effective waste management systems. 

• Long-term Goals (2030 and Beyond)

Achieving Full Circular Economy Compliance: Aligning with the Circular Economy Action Plan to ensure minimal environmental impact and maximum resource efficiency in tobacco production and packaging.

Continual Improvement and Adaptation: Ongoing review and adaptation of sustainability standards to align with new scientific findings, technological advancements, and policy changes.

4. European Union Carbon Border Adjustment Mechanism (CBAM) 

First proposed in 2019 within the EU Green Deal, CMAB is a central element of the EU’s ambitious “Fit for 55” Agenda. It is designed to counter the risk of carbon leakage and to put a fair price on the carbon emitted during the production of carbon-intensive goods that are entering the EU. This is meant to promote cleaner industrial production in other countries.

In compliance with the rules of WTO, CBAM ensures that the carbon price of imports is equal to the carbon price of domestic production without undermining the EU’s climate objectives.

The new rules will initially impact goods imported from non-EU countries that are carbon intensive. This includes products from the cement, electricity, fertilisers, aluminium, iron, steel, and hydrogen sectors, along with certain upstream and downstream products, primarily iron, steel, and aluminium.

Additional Norms for Textiles

1. 2012: EU Ecolabel for Textiles
   • The EU Ecolabel criteria for textiles were updated to encourage sustainable production practices, including the reduction of harmful substances and the use of sustainable fibres.
2. 2017: EU Circular Economy Package
   • Introduced measures to promote the circular economy, including waste reduction and recycling targets that affect the textile sector.

2020-2025 Targets

1. 2020: European Green Deal
   • Launched to make the EU climate-neutral by 2050, the Green Deal includes initiatives targeting the textile industry, promoting sustainable practices and circularity.
2. 2021: Circular Economy Action Plan
   • As part of the Green Deal, this plan focuses on textiles as a key product category, setting the stage for comprehensive sustainability measures.
3. 2022: Strategy for Sustainable and Circular Textiles
   • The European Commission adopted this strategy to address the entire lifecycle of textile products, aiming for all textiles placed on the EU market to be durable, repairable, and recyclable by 2030.
4. 2023: Corporate Sustainability Reporting Directive (CSRD)
   • Came into force, requiring large companies, including those in the textile sector, to report on their environmental and social impact more comprehensively.

2025-2030 Targets

1. 2025: Extended Producer Responsibility (EPR) for Textiles
   • Expected to be implemented across the EU, requiring producers to take responsibility for the entire lifecycle of their products, including end-of-life management.
2. 2027: Implementation of Digital Product Passport
   • Part of the Circular Economy Action Plan, this passport will provide information on the composition, environmental impact, and recycling options of textile products, enhancing transparency and traceability.
3. 2030: Durable, Repairable, and Recyclable Textiles
   • By 2030, all textiles placed on the EU market are expected to be designed for durability, repairability, and recyclability, significantly reducing waste and environmental impact.
4. 2030: Mandatory Minimum Recycled Content
   • The EU aims to introduce mandatory minimum recycled content in textiles, encouraging the use of recycled fibres and reducing dependency on virgin materials.

Long-Term Vision (2030 and Beyond)

1. 2050: Climate Neutrality
   • The European Green Deal targets overall climate neutrality by 2050, which includes the textile industry adopting zero-emission practices throughout the supply chain.
2. Continuous Improvement
   • Ongoing updates to regulations and standards will ensure that the textile industry continues to advance in sustainability, incorporating new technologies and practices as they develop.

Additional Norms for Tea, Coffee and Cereals

Pre-2020 Milestones

1. 2010: EU Organic Regulation (EC No 834/2007)
   • Establishes standards for organic farming, including the production of tea, coffee, and cereals, promoting sustainable agricultural practices.
2. 2012: EU Ecolabel for Food and Feed Products
   • Introduced to encourage the production of environmentally friendly food and feed products, including criteria for sustainability.

2020-2025 Targets

1. 2021: Farm to Fork Strategy
   • Part of the European Green Deal, this strategy aims to make food systems fair, healthy, and environmentally friendly, including sustainable production of tea, coffee, and cereals.
2. 2021: European Common Agricultural Policy (CAP) Reform
   • The CAP reform introduces greener practices, encouraging farmers to adopt sustainable practices through subsidies and incentives.
3. 2023: Corporate Sustainability Reporting Directive (CSRD)
   • Requires large companies, including those involved in the production and trade of tea, coffee, and cereals, to report comprehensively on their environmental and social impacts.

2025-2030 Targets

1. 2025: Implementation of the Farm-to-Fork Strategy
   • Full implementation of the strategy, which includes targets for reducing the use of pesticides, fertilisers, and antibiotics, promoting organic farming, and improving sustainability in food production.
2. 2027: Extended Producer Responsibility (EPR)
   • Expected to be implemented across the EU, requiring producers to take responsibility for the entire lifecycle of their products, including end-of-life management.
3. 2030: Sustainable Agriculture Goals
   • By 2030, the EU aims to achieve significant reductions in greenhouse gas emissions from agriculture, increase organic farming, and promote biodiversity. All agricultural products, including tea, coffee, and cereals, are expected to meet high sustainability standards.
4. 2030: Circular Economy Action Plan
   • Part of the European Green Deal, this plan aims to promote resource efficiency and reduce waste, impacting the production and processing of tea, coffee, and cereals.

Long-Term Vision (2030 and Beyond)

1. 2050: Climate Neutrality
   • The European Green Deal targets overall climate neutrality by 2050, which includes adopting zero-emission practices throughout the agricultural supply chain for tea, coffee, and cereals.

Key Certifications and Standards

1. Fair Trade Certification
   • Promotes fair wages, ethical treatment of workers, and environmentally sustainable farming practices.
2. Rainforest Alliance Certification
   • Ensures that agricultural products are produced according to rigorous environmental, social, and economic criteria.
3. UTZ Certification
   • Focuses on sustainable farming practices and better opportunities for farmers, workers, and their families.
4. GlobalGAP Certification
   • Set standards for good agricultural practices, ensuring sustainable production of food products, including tea, coffee, and cereals.

Additional Norms for Tobacco 

1. Tobacco Products Directive (TPD):

• The TPD sets forth requirements for tobacco products, including maximum emission levels, measurement methods, and standards (for cigarettes only).
• It also prohibits the use of ingredients that are listed in the Directive, have carcinogenic, mutagenic, or reprotoxic properties, or pose a risk to human health.
• On 20 May 2024, the EU tobacco traceability system was extended to include tobacco products other than cigarettes and roll-your-own tobacco. As of this date, all tobacco products are covered by the traceability system.

2. Waste Framework Directive (2008/98/EC)

• Establishes the basic concepts and definitions related to waste management, including definitions of waste, recycling, and recovery.
• Sets the principles of the waste hierarchy, which prioritises waste prevention, reuse, recycling, and recovery over disposal.
• Requires member states to take appropriate measures to encourage the prevention or reduction of waste production and its harmfulness.

3. Landfill Directive (1999/31/EC)

• Aims to prevent or reduce the negative effects of landfill waste on the environment, particularly on surface water, groundwater, soil, air, and human health.
• Regulates the conditions under which waste, including agricultural waste like tea leaf waste, cereal husk, and cigarette leaf waste, can be landfilled.
• Requires pre-treatment of waste before landfill disposal to reduce its environmental impact.

4. Circular Economy Action Plan (2020)

• Part of the European Green Deal, this plan promotes the use of sustainable materials, waste reduction, and recycling.
• Encourages businesses to design products with a longer lifecycle and more efficient use of resources, which indirectly impacts the management of waste products, including leaf and husk waste.

5. Agricultural Waste Management

• Agricultural practices, including the disposal of cigarette leaf waste, must comply with national regulations that implement EU directives related to environmental protection and waste management.
• Sustainable agricultural practices are promoted to minimise the environmental impact of waste, including crop residues and processing waste.

6. National Regulations and Best Practices

• Individual EU member states may have specific regulations and guidelines for the disposal of agricultural waste, including cigarette leaf waste.
• Best practices include composting, recycling, and converting waste into bioenergy to reduce environmental impact.