Cloudsyte is a Sustainability Compliance software designed to assist global brands in maintaining compliance with all Environmental, Social, and Governance (ESG) pillars. The software helps brands reduce risks associated with their suppliers and ensure compliance with regulated substances in their products through analysis of their Bill of Materials.
The importance of ESG compliance for global brands cannot be understated. Companies that prioritize sustainability and ethical practices are increasingly being rewarded by consumers, investors, and regulators. By using Cloudsyte, global brands can easily manage their compliance with various ESG regulations and standards, reducing the risk of non-compliance and reputational damage.
Cloudsyte's supplier-level compliance feature helps companies assess and manage the risks associated with their suppliers, ensuring that they are following ethical and sustainable practices. This can include evaluating their labor practices, environmental impact, and business ethics.
At the product level, Cloudsyte's analysis of a brand's Bill of Materials can help identify any regulated substances that may be present. This can be crucial for ensuring compliance with laws such as the Global Automotive Declarable Substance List (GADSL), REACH, and the Uyghur Forced Labor Prevention Act (UFLPA).
Overall, Cloudsyte is a valuable tool for global brands looking to prioritize ESG compliance and build a reputation for sustainability and ethical practices.
Conflict Minerals Assessment: This refers to the audit of a company's supply chain to ensure that it does not include minerals (such as tin, tungsten, and tantalum) that are sourced from conflict regions. This is important to prevent the funding of armed conflicts through the sale of these minerals.
Supplier Due Diligence: This refers to the process of evaluating a company's suppliers to ensure that they are following ethical and sustainable practices. This can include evaluating their labor practices, environmental impact, and business ethics.
Global Automotive Declarable Substance List (GADSL): This is a list of substances that are commonly used in the automotive industry and must be disclosed to regulators. The list is intended to help ensure the safe use of these substances and prevent harmful effects on human health and the environment.
The Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH): REACH is a European Union regulation that requires companies to register and evaluate the potential risks of the chemicals they use and sell. This is intended to ensure the safe use of chemicals and prevent harm to human health and the environment.
Uyghur Forced Labor Prevention Act (UFLPA): The UFLPA is a U.S. law that aims to prevent the use of forced labor from the Uyghur region of China in the production of goods sold in the United States. This law requires companies to conduct due diligence and provide certification that their products are not made using forced labor.
Substances of Concern In articles, as such or in complex objects (SCIP): SCIP is a European Union database that contains information on substances that are of concern because of their potential negative impact on the environment. Companies are required to disclose the presence of these substances in their products to regulators.
TSCA (Toxic Substances Control Act): TSCA is a U.S. law that gives the Environmental Protection Agency (EPA) the authority to regulate the use of chemicals in order to protect human health and the environment. The law requires companies to disclose information about the chemicals they use and sell, and the EPA can take action to regulate or ban the use of certain chemicals if they pose a risk.
Full Material Declaration (FMD): An FMD is a document that provides detailed information about the materials used in a product. This can include information about the chemical composition, environmental impact, and potential health effects of the materials.
Proposition 65: Proposition 65 is a California law that requires companies to disclose the presence of certain chemicals in their products. These chemicals are known to cause cancer, birth defects, or other reproductive harm, and the law is intended to help consumers make informed choices about the products they buy.
Compliance checklist
Conduct a thorough audit of your supply chain to ensure that it does not include minerals from conflict regions.
Evaluate your suppliers to ensure that they are following ethical and sustainable practices.
Disclose the presence of substances on the GADSL to regulators.
Register and evaluate the potential risks of the chemicals you use and sell in accordance with REACH regulations.
Conduct due diligence and provide certification that your products are not made using forced labor in accordance with the UFLPA.
Disclose the presence of substances of concern in your products to regulators in accordance with SCIP regulations.
Disclose information about the chemicals you use and sell in accordance with TSCA regulations.
Provide detailed information about the materials used in your products in an FMD document.
Disclose the presence of certain chemicals in your products in accordance with Proposition 65.
Develop a clear understanding of the regulations that apply to your business and the products you sell.
Create a plan to ensure compliance with these regulations, including procedures for conducting audits, evaluating suppliers, and disclosing information.
Implement systems and processes to track and monitor compliance, including monitoring changes to regulations and updating your compliance plan as needed.
Train your staff on the requirements of these regulations and how to implement your compliance plan.
Regularly review and assess your compliance efforts to identify areas for improvement and ensure continued compliance.
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