PETERSON SOLUTIONS
SRI LANKAN EXPORTERS URGED TO ACT AS EU SUSTAINABILITY RULES TIGHTEN WITH LOOMING DEADLINES
Sri Lankan exporters targeting the EU are being urged to prepare immediately for sweeping new sustainability regulations that will fundamentally change how businesses market products, manage supply chains and demonstrate environmental and social responsibility.
Beginning 27 September, companies exporting goods and services to the European Union will face tougher scrutiny under the Empowering Consumers for the Green Transition Directive (EmpCo), which is designed to eliminate misleading environmental claims commonly known as greenwashing.
Businesses found making unsubstantiated sustainability claims could face penalties of up to € 2 million or four percent of annual turnover in the relevant EU member state, together with reputational damage and possible restrictions on market access.
According to Peterson Solutions, many exporters remain unaware that the new rules extend well beyond product labels, applying equally to websites, social media, advertisements, sustainability reports and other promotional material carrying environmental claims.
“The era of simply saying a product is green, eco-friendly or sustainably produced is coming to an end,” says Asia-Pacific Regional Manager of Peterson Solutions Dr. Rukshan Gunatilaka, adding: “Businesses must now be able to produce credible evidence supporting every sustainability claim they make. Compliance is no longer merely a regulatory obligation. It’s becoming an absolute necessity for access to EU markets.”
He notes that sustainability has evolved from a voluntary corporate initiative into a core business requirement as governments, investors, and consumers increasingly demand transparency and accountability throughout global supply chains.
“Doing business and protecting the planet can no longer be treated as separate objectives,” asserts Gunatilaka, adding: “Environmental, social and governance performance now has a direct impact on a company’s reputation, shareholder value and long-term commercial success. Companies that fail to address these issues risk losing both customers and market confidence.”
The European Union’s regulatory reforms form part of a broader shift towards more responsible global trade. Besides EmpCo, exporters must also prepare for the Packaging and Packaging Waste Regulation (PPWR), which came into effect on 12 August with further requirements phased in through 2030, and the EU Deforestation Regulation (EUDR), whose due diligence obligations take effect for larger companies on 30 December.
These regulations affect a wide range of Sri Lankan export sectors and industries including food and beverages, agriculture, tea, spices, rubber products, apparel and textiles, fisheries, plastics, tourism related products and even certain services supplying European clients.
Peterson Solutions notes that one of the chief misconceptions among businesses is that these regulations apply only to European companies. In reality, any organisation exporting to Europe or making sustainability claims reaching European consumers may be required to demonstrate compliance.
“The European market remains one of Sri Lanka’s most valuable export destinations. Companies that prepare early will not only avoid regulatory risks but also strengthen customer trust, improve competitiveness and position themselves for long-term growth,” Gunatilaka says.
Assistant Manager – Business Communications and Marketing at Peterson Solutions Dulini Wijeratne says: “Businesses should view compliance as a strategic investment rather than merely an additional cost.”
She adds: “Many established exporters already regard sustainability compliance as an essential part of doing business in Europe. Companies planning to enter the EU market are also beginning preparations early because they recognise that robust sustainability systems create long-term commercial advantages.”
As a part of the Netherlands headquartered PCU group (established in 1920), the company operates in more than 80 countries, delivers projects across 120 nations and serves a global client base exceeding 40,000 clients.
Peterson Solutions provides certification support; sustainability consulting; responsible sourcing; supply chain traceability; environmental, social and corporate governance (ESG) advisory services; academy solutions; geo-services; and other technology based solutions.
Its digital platforms help organisations monitor carbon emissions, manage ESG performance, strengthen due diligence systems, and maintain documentation required for increasingly complex international regulations and standards.
In Sri Lanka, Peterson Solutions works across food and agriculture, apparel, plastics, rubber, manufacturing, fisheries, aquaculture, tourism, and other industries and sectors. It also supports clients in Cambodia, Myanmar and the Maldives.
The company advises organisations to begin reviewing their sustainability communications, supply chains and governance systems now, rather than waiting until regulatory deadlines approach.
“The question regulators, investors and consumers are increasingly asking is no longer whether a company has sustainability ambitions. The real question is: ‘Can you prove it?’” Wijeratne points out.
Peterson Solutions notes that while many businesses are aware that sustainability requirements are evolving, a large number are still uncertain about the practical steps needed to prepare for emerging regulations and market expectations.
Wijeratne elaborates: “The organisations that will be best positioned for the future are those that begin preparing today. Whether it is sustainability claims, supply chain traceability, packaging requirements, deforestation due diligence or ESG reporting, businesses should start assessing their current systems and identifying gaps well before compliance deadlines approach.”
Peterson Solutions affirms that organisations seeking to understand how evolving sustainability requirements may affect their operations can benefit from early assessments, risk reviews, supply chain mapping, ESG implementation planning and evidence based sustainability reporting to strengthen market readiness and long-term competitiveness.
– Compiled by Indrajit Lankeshwara
COMPANY DETAILS
- Email: dwijeratne@onepeterson.com
- Website: www.peterson-solutions.com
