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Time is ticking, and in just a few days—on April 2, 2025—the Financial Conduct Authority (FCA)  in the UK will officially implement new rules under the Sustainability Disclosure Requirements (SDR) . These regulations are set to be a major milestone in the global fight against greenwashing , demanding higher transparency in sustainable investments. For financial industry players, this is not just another regulatory update—it is a game-changer  that will redefine how sustainable investment products are structured and marketed. Four New Labels: No More Unsubstantiated Sustainability Claims The FCA regulations introduce four sustainability labels  designed to help investors assess the credibility of ESG investment products. The four labels are: Sustainability Mixed Goals  – for investments combining multiple sustainability approaches. Sustainability Improvers  – for investments targeting progressive improvements in environmental and social factors. Sustainability Impact  – for investments making a tangible environmental or social impact. Sustainability Focus  – for investments where at least 70% of assets are sustainability-focused. Through this framework, the FCA ensures that there is no longer room for unverified sustainability claims . Any investment carrying an ESG label must have a transparent, data-driven, and verifiable methodology. Significant Impact on the Investment Industry For the financial industry, these new regulations present a real test. Many investment firms are now racing against time to ensure their products meet these new criteria. The FCA rules require fund managers to clearly define their sustainability strategies and provide more transparent reporting . Some investment firms have already begun adjusting their portfolios to align with one of the four FCA labels. This indicates that these new regulations are not just a formality but a transformative step that will impact the entire sustainable investment ecosystem . The Fall of Greenwashing? Greenwashing has been a persistent issue in the investment world. Many financial products claim to be “eco-friendly” or “sustainable” to attract investors, even when they have little to no actual environmental or social impact. The FCA aims to end this practice by implementing stricter regulations and a clearer labelling system. However, is this enough to completely eliminate greenwashing? While this is a significant step forward, the global financial industry must still work harder to ensure that sustainable investments truly drive meaningful change. Conclusion: New Standards, A New Era With these regulations set to take effect in less than a month, financial industry players can no longer ignore the urgency of this shift. Sustainability standards are no longer just promises—they are now obligations that must be met with transparency and accountability . Investors now have better tools to assess financial products, while fund managers must adjust their strategies to stay compliant. A new era of sustainable investing has begun, and the countdown to FCA’s regulations is a clear signal that greenwashing no longer has a place in the future of finance.

What is Social Compliance? Social compliance  refers to the measures and policies implemented by companies to safeguard workers' rights, create a safe working environment, and uphold fairness throughout the supply chain. Beyond merely complying with labour laws, social compliance also encompasses corporate social responsibility toward local communities and environmental considerations. In today's business landscape, social compliance has become an essential component of Corporate Social Responsibility (CSR) . Companies that embrace social compliance are committed to ethical business practices, not only within their own operations but also across their entire supply and distribution networks. As a result, social compliance serves as an ethical standard that ensures worker protection and environmental sustainability. Principles of Social Compliance Social compliance is based on a set of principles designed to uphold fair labour practices across various industries. These principles include: Providing safe and decent working conditions for employees Respecting workers' rights, including the freedom of association Preventing all forms of discrimination Eliminating child labour and forced labour Ensuring fair wages in accordance with industry standards and applicable laws Guaranteeing that raw materials and production processes do not harm the environment Complying with labour regulations in every operational region Social Compliance Audit Many companies operate global supply chains spanning multiple countries, making it increasingly complex to monitor ethical labour standards. S ocial compliance audits play a crucial role in ensuring that suppliers and business partners adhere to established standards. These audits are conducted by third-party organizations that assess a company's compliance with various labour and environmental aspects. Some of the most commonly used social compliance audits include: SA8000  – A standard developed by Social Accountability International (SAI) to protect workers from discrimination and child exploitation while ensuring fair wages and a safe working environment. Ethical Trading Initiative (ETI) Base Code  – A framework that guides companies in safeguarding workers' rights and improving social conditions across global supply chains. Corporate Sustainability Reporting Directive (CSRD)  – While not an audit, CSRD serves as a key reference for companies to disclose their compliance with social and sustainability standards. The Relationship Between Social Compliance and ILO Standards Many companies adopt labo u r standards set by the International Labour Organization (ILO)  to ensure that their employment policies align with global best practices. These principles serve as a foundation for ethical labour practices and are widely recognized across industries. Some of the key principles derived from ILO standards include: Freedom of association and the right to collective bargaining Elimination of forced labour and child labour Equal opportunities and the eradication of workplace discrimination Fair and equal remuneration for work of equal value Ensuring a safe and healthy working environment for all employees Recognising workers' rights to voice concerns and participate in decision-making processes By integrating these principles into their policies, companies reinforce their commitment to ethical labour practices and contribute to a more sustainable and responsible global workforce. The Benefits of Social Compliance for Businesses Implementing social compliance  offers numerous advantages for companies, both in the short and long term. Some of the key benefits include: Enhancing corporate reputation  – Consumers are increasingly aware of responsible business practices, making them more likely to support brands that adhere to social and environmental standards. Strengthening relationships with suppliers and stakeholders  – Compliance with social standards fosters a more transparent and sustainable supply chain. Reducing legal and reputational risks  – Ensuring compliance with labour laws helps businesses avoid legal penalties and negative media exposure. Improving competitiveness and market access  – Many global corporations and investors require their suppliers to meet social compliance standards as a prerequisite for collaboration. Supporting long-term business sustainability  – Companies that prioritise worker welfare and environmental responsibility tend to be more stable and resilient in their operations. How to Implement Social Compliance in Business To ensure adherence to social compliance standards, companies can take the following steps: Develop a code of ethics and compliance policies  – Establish clear guidelines on labour standards, workers' rights, workplace safety, and environmental responsibilities. Train employees and management  – Raise awareness and understanding of social compliance across all levels of the organization through regular training programs. Conduct internal and external audits  – Periodic assessments by internal teams and third-party auditors help ensure compliance policies are effectively implemented. Implement reporting and monitoring systems  – Provide employees with safe channels to report violations without fear of retaliation. Commit to continuous improvement  – Companies should regularly update their policies and practices to align with evolving regulations and global trends. Conclusion Social compliance is more than just following regulations; it reflects a company's commitment to ethical business practices and social responsibility . By adopting relevant standards and certifications, businesses can build a more sustainable  and responsible  operation, enhancing their reputation while creating a positive impact on workers and society . In an era of increased transparency, social compliance is no longer optional—it is a key factor for companies looking to stay competitive in the global market .

The year 2025 marks a significant turning point for the global organic industry. With stricter regulations, growing consumer awareness, and rapid market expansion, this sector not only presents promising economic opportunities but also reinforces its role in environmental sustainability. In this article, we will explore the key factors shaping the organic industry landscape in 2025 and how industry players, particularly in Indonesia, can adapt and capitalize on these developments. Strengthening Organic Regulations in the European Union The European Union (EU) has implemented a new organic regulation, Regulation (EU) 2018/848, which will take effect on January 1, 2025. This regulation aims to strengthen the integrity of organic production by setting stricter standards and more rigorous control measures. One of the most significant changes is the requirement to separate organic and non-organic production units, ensuring better traceability within the supply chain. Any organic products exported to the EU, including those from Indonesia, must comply with these new regulations. This means that Indonesian producers must adapt quickly to maintain access to this lucrative market. The Global Rise of Organic Products The demand for organic products is surging globally. The global organic food market is projected to reach USD 546.97 million by 2032, growing at a compound annual growth rate (CAGR) of 11.6% from 2023 to 2032. This remarkable growth is fueled by consumers' increasing awareness of health and environmental sustainability. People are more conscious than ever about what they consume, leading to a significant shift towards organic food. As consumers demand transparency and sustainability, organic certifications and supply chain accountability become more crucial than ever. Indonesia’s Potential in the Organic Export Market Indonesia has demonstrated its potential in the global organic market by securing transactions worth USD 6.02 million at the Biofach Exhibition in Germany, one of the world's largest organic trade fairs. This achievement indicates that Indonesian organic products have a strong appeal to international buyers. However, maintaining and expanding this success requires ongoing efforts to meet stringent global standards, particularly in markets like the EU, where regulatory compliance is becoming more demanding. With the right strategies, Indonesia could position itself as a key player in the organic sector. OrgaTrop 2025: A Platform for Advancing Tropical Organic Agriculture To further strengthen organic agricultural practices, Indonesia will host the 3rd International Conference on Organic Agriculture in Tropical Regions (OrgaTrop 2025) from September 1-4, 2025, in Yogyakarta. This event will serve as a critical platform for scientists, practitioners, and policymakers to discuss organic farming systems, regulatory frameworks, and technological advancements. The conference will highlight how organic agriculture plays a vital role in achieving Sustainable Development Goals (SDGs), emphasizing the intersection of food security, environmental conservation, and economic development. The Expansion of Global Organic Farmland The organic farming sector is expanding worldwide. In 2023, the total area of organic farmland increased by 2.5 million hectares, reaching nearly 99 million hectares globally. Additionally, global organic food sales reached almost 136 billion euros. These figures, presented at BIOFACH on February 11, 2025, highlight the significant progress in the organic industry. The increasing adoption of organic farming practices suggests a growing recognition of its benefits, including soil health preservation, biodiversity enhancement, and reduced reliance on synthetic fertilizers and pesticides. Future Growth of the Organic Food Market A study published on February 13, 2025, forecasts that the global organic food market will grow from USD 228.84 billion in 2024 to USD 593.98 billion by 2033, with a CAGR of 11.18% during this period. This robust growth underscores the persistent shift toward organic consumption. Companies, retailers, and farmers must align with this trend by improving supply chain transparency, adopting sustainable farming practices, and meeting evolving consumer expectations for ethical and eco-friendly food production. The Growing Demand for Organic Seeds The organic seed market is also experiencing significant growth, with an estimated value of USD 5.20 billion in 2025. It is projected to grow at a CAGR of 9.2% from 2025 to 2035, reaching USD 12.50 billion by the end of the forecast period. This demand is driven by the rising popularity of organic food and the increasing adoption of sustainable agricultural practices. Organic seeds are a crucial component of a truly organic food system, ensuring that crops are grown without synthetic chemicals from the very start. Global Organic Produce Expo 2025 The importance of organic products will also be emphasized at the Global Organic Produce Expo 2025, which took place on January 13-14, 2025, at the JW Marriott Miami Turnberry Resort in Aventura, Florida. This event will bring together industry leaders across the fresh produce supply chain to discuss market trends and strategies to meet the needs of environmentally conscious consumers. The expo serves as a vital opportunity for businesses to explore emerging trends and innovations in organic agriculture. Organic Week 2025: Strengthening Industry Collaboration From September 15-17, 2025, the Organic Trade Association (OTA) will host Organic Week 2025 at Park Hyatt. This event will provide an essential platform for organic industry stakeholders to engage in discussions and collaborations aimed at advancing the organic sector. It will address policy developments, sustainability challenges, and market opportunities, reinforcing the commitment to a more sustainable and transparent organic industry. How Peterson Solutions Can Support the Organic Sector As the organic industry continues to grow and evolve, businesses must navigate complex regulations, ensure supply chain transparency, and adopt sustainable practices to remain competitive. Peterson Solutions Indonesia provides expert consulting services to help businesses meet stringent organic certification requirements, develop sustainability strategies, and enhance supply chain integrity. With extensive experience in sustainability reporting, environmental impact assessments, and compliance with international standards, Peterson Solutions is well-equipped to assist companies in achieving their organic industry goals. By leveraging our expertise, businesses can strengthen their market presence, align with regulatory expectations, and contribute to a more sustainable future. The organic sector in 2025 presents both significant opportunities and challenges. With the right strategies, industry players can capitalize on this growing movement while ensuring compliance with evolving global standards. Peterson Solutions stands ready to support businesses in navigating these complexities, fostering a resilient and thriving organic industry for years to come.

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Peterson Indonesia's Environmental Consultants provide direct solutions to your environmental challenges while guaranteeing your trust is well-placed. Peterson Solutio ns Indon esia Sustainability Consulting Find Services Sustainability Reporting Peterson offers a number of services to support you creating a sustainability report, also referred to as a corporate social responsibility (CSR) report. Read more Our Unique Approach At Peterson, we are responsive and flexible. We build corporate teams from different regions and fields of expertise to best suit your requirements. Risk Analysis Peterson can assist our customers in mapping the risks of adverse social and environmental impacts in your supply chain, by commodities and geographies. Read more Read more 70 4000 SOME OF OUR HAPPY CLIENTS Find A Local Office You will be redirected to our international website Find an office News & Events 2 days ago Carbon in 2025: Challenges and Opportunities in the Global Carbon Issue Carbon Issues in 2025 As we approach 2025, the issue of carbon emissions has become a central focus in the global agenda. The undeniable... 2 days ago Transforming Aquaculture Standards: Latest Updates from ASC and MSC Introduction: The Urgency of ASC & MSC in the Fisheries Industry The aquaculture and fisheries industry is under increasing scrutiny to... Feb 21 New ISCC EU Recognition by the European Commission ISCC EU update by the European Commission On January 2, 2025, the International Sustainability and Carbon Certification (ISCC) announced... View More Subscribe Form Join Thanks for subscribing!