Compliance – Almost no other area constantly confronts companies with ever more complex challenges.
Multinational corporations in particular must also comply with the laws that apply to their international subsidiaries. As a result, compliance officers are faced with the major challenge of implementing the complex, international legal requirements in a compliant manner. Compliance responsibility does not cease at the group’s parent company, but extends to all subsidiaries in Germany and abroad.
To ensure compliance across the entire group, it is necessary to continuously monitor and evaluate all trends and developments. In particular, the requirements from the EHS area (Environmental Health and Safety) – Environment, Safety and Health, are becoming increasingly complex and constantly changing challenges can be observed.
Ensuring compliance with EHS standards requires specialist expertise and qualified personnel, as well as a clear presentation of all laws, standards and requirements relevant to the company – This is the only way to overcome the following challenges.
EHS relevant trends and legislative changes in 2023:
- EPA (Environmental Protection Agency) focuses on holding polluters and responsible parties accountable. Supporting this is a significant investment to enforce and ensure compliance with national environmental laws. One of EPA’s goals is to incorporate environmental justice and civil rights into programs, policies, and activities to bring about a reduction in environmental and public health disparities. Against this backdrop, greenhouse gas emissions are to be minimized through the introduction of pollution regulations in the energy sector.
- The Safer Communities by Chemical Accident Prevention (SCCAP) regulation is also facing an important change to address climate change impacts, environmental justice, worker participation and better community information.
The implementation of this amendment should result in better consideration of surrounding communities and the consequences of potential chemical spills when certain facilities are used, which could have a significant impact on future industry requirements. In addition, in the future, facilities will need to address how to limit damage around per- and polyfluoroalkyl substances (PFAS).
Besides EHS, other areas are also facing upheaval.
- California, Connecticut, Colorado, Utah and Virginia are about to implement the new privacy laws. Companies are encouraged to create cross-functional teams. These teams should be comprised of legal compliance, privacy, technical and risk management professionals.
- In addition, the Supply Chain Due Diligence Act will have a significant impact on international trade between the USA and Germany. Companies will have to take a stand on human rights issues and ensure that human rights are not violated.
Identifying, understanding and prioritizing compliance risks and developing a strategy will lead to minimizing compliance risk in the company. A suitable compliance management system not only ensures that country regulations are adhered to, it also identifies risks relating to company-relevant requirements in connection with German companies. This ensures that a uniform compliance standard is guaranteed internationally.
Our solution
Our compliance management software Eticor and our update service ensure that you are always aware of all legal requirements and updates that affect your company. Thus, you are always up-to-date in the compliance area. By translating complex legal requirements into easy-to-understand tasks, your employees will always act in a compliant manner and will know exactly what needs to be done and when.
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Legal Compliance Expert
Managing Director & Legal Representative China