Leading UK supermarkets are pressing the Government to take immediate steps to implement due diligence laws aimed at tackling illegal deforestation in global supply chains. Retail giants, including Tesco, Sainsbury’s, and Lidl, are in a holding pattern as they await progress on key legislation under the Environment Act 2021.
The proposed laws would prevent businesses from using or selling products containing palm oil, cocoa, beef, leather, and soy sourced from deforested land. However, the Government has yet to publish the necessary secondary legislation or set a timeline for its introduction, leaving retailers uncertain about how to adjust their operations in line with potential requirements.
Supermarkets are concerned that the delay in legislation could affect supply chain stability and food security. They warn that the UK could face millions of pounds in export losses to the European Union, as the EU’s deforestation regulations are set to take effect later this year. The retailers argue that aligning UK regulations with EU standards is critical for ensuring competitiveness and preventing disruptions in global trade.
In addition to the business risks, the supermarkets highlight the environmental and social importance of deforestation laws, citing their role in supporting climate change mitigation and ensuring the long-term security of food and commodity supply chains. Increased weather volatility and food price inflation, particularly in sectors like cocoa and coffee, have made addressing these issues even more pressing.
Retailers are urging the Government to act quickly and to adopt secondary legislation that aligns with European deforestation standards. They also emphasised the need for greater supply chain transparency after the point of import to safeguard against products linked to illegal deforestation entering the market.
