The future of sustainable trade: Due diligence initiatives, voluntary sustainability standards and developing countries

The governance of sustainable trade is undergoing a major transformation. New due diligence measures are placing stricter requirements on businesses to ensure their supply chains do not harm people or the planet. These legally binding rules require companies to identify risks, take steps to prevent issues like deforestation or labor exploitation, and demonstrate compliance through audits and reporting. While these measures aim to make trade more ethical and sustainable, they pose significant challenges for small producers and exporters in developing countries.

Without the resources needed to meet these requirements, many risk losing access to global markets. This report examines this regulatory transformation, focusing on the intersection between voluntary sustainability standards (VSS) and emerging due diligence requirements. It serves as a guide for policymakers, businesses and researchers navigating the evolving landscape of sustainable trade. By understanding and addressing the challenges of this shift, stakeholders can help shape a trade system that balances sustainability goals with inclusive economic growth.