The document is a presentation about navigating supply chain multiverses and understanding the impacts of digital legislation. It discusses the EU Green Deal, ESG regulations, and the new EU legal framework which includes regulations around sustainability reporting, due diligence, auditing, and more. It then covers the "twin transition" of moving to a green and digital economy in light of the COVID-19 pandemic and plans for economic recovery. The presentation introduces concepts of an EU digital twin and system of systems using connected data spaces and infrastructures to make everything from industry to decision making more integrated and data-driven.

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Navigating Supply
Chain Multiverses:
Understanding
impacts of Digital
themed legislations.
Presented at ChemUK2023, Thursday 11th May 2023.
Presented by: Eur Ing. Raj Takhar, MSc, CEng, PhD,
Regulatory & Sustainability Expert.
Email: Raj.Takhar@assent.com.

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Agenda – 11th May 2023
About Me
1. Introduction.
2. EU Green Deal, ESG and the EU New Legal
Framework
3. The Twin Transition
4. EU Digital Twin
5. EU Systems of Systems
6. Q&A.

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Raj Takhar
About Me
Regulatory &
Sustainability Expert:
Product Sustainability
Assent Inc.
❏ Education: MSc, PhD.
❏ Professional: Chartered Engineer, European Chartered
Engineer.
❏ Doctoral Research: ‘The effect of chemical regulations on
the Aerospace and Defence sector’.
❏ Standards: IPC, BSi, ASD, CENELEC, ISO.
❏ Trade Associations: IPC, Digital Europe, IET.
❏ Stakeholder Groups: (numerous workshops related to
updates to EU REACH), SCIP IT User Group, UK REACH
(Several Stakeholders) group.
❏ Contact:
❏ Raj.Takhar@assent.com.
❏ https://www.linkedin.com/in/eur-ing-raj-takhar-
msc-ceng-phd-4791134/

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Introduction to Assent
Helping complex manufacturers bring responsible
products to the world with solutions to
see deeper, be smarter and grow better
International team of regulatory experts
with deep expertise
World-Class Solutions for:
▸ Product Compliance
▸ Environmental, Social, and Governance (ESG)
▸ Trade Compliance
A Global Presence
▸ Ottawa, Ontario
▸ Columbus, Ohio
▸ Penang, Malaysia
▸ Amsterdam,
Netherlands
▸ Eldoret, Kenya
Some Companies That Trust Assent

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Introduction

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Supply chains were never built
with sustainability in mind.

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Introduction: Value Chains

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Introduction: Value Chains

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Introduction: Value Chains
Constantly Being
Consumers by All Value
Chains Around The
World!!!!

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Introduction: Growth & Complexity

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EU Green Deal, ESG and
the EU New Legal
Framework

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Our goal is to reconcile the economy with our planet, to
reconcile the way we produce, the way we consume,
with our planet and to make it work for our people
— Ursula von der Leyen, European Commission President, Dec 2019

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EU Green Deal (2019)
▸ Climate neutral
▸ Significantly reduced ecological footprint
▸ Focus on ressource conservartion, reuse & recyling
▸ Safe and clean environment
▸ Supported by financial instruments
▹ Taxonomy regulation for classifying
‘green investment’
▹ Acceleration of private investment
▸ Need for cohesive law-making
▹ Chemicals Strategy for Sustainability
(CSS)
▹ Corporate Due Diligence
▹ Auditing and reporting
▹ Implementation and enforcement
▹ Transparent KPIs, including non-financials
Sustainabilty of EU industries “All industrial value chains,
including energy-intensive sectors,
will have a key role to play”
cf https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en

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Environmental, Social and corporate Governance (ESG)
* Revised / recasted Non-Financial Reporting Directive (NFRD)
** EU Sustainability Reporting Standard (ESRS) / European Financial Reporting Advisory Group (EFRAG)
Mandatory Human
Rights & Environment
Due Diligence (MHREDD)
Duty
of Care
German Supply
Chain Act
EU Member
State Acts
EU Ban of Forced Labour
EU Corporate Sustainability
Reporting Directive (CSRD)*`
EU Sustainable
Finance Disclosure
Regulation (SFDR)
Standards
(ESRS/EFRAG)** Taxonomy
EU Corporate Sustainability
Due Diligence (CSDD)
Directive → CS3D
Due Diligence Obligations
Good Corporate Citizen

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Environmental, Social and corporate Governance (ESG)
* Revised / recasted Non-Financial Reporting Directive (NFRD)
** EU Sustainability Reporting Standard (ESRS) / European Financial Reporting Advisory Group (EFRAG)
Mandatory Human
Rights & Environment
Due Diligence (MHREDD)
Duty
of Care
German Supply
Chain Act
EU Member
State Acts
EU Ban of Forced Labour
EU Corporate Sustainability
Reporting Directive (CSRD)*`
EU Sustainable
Finance Disclosure
Regulation (SFDR)
Standards
(ESRS/EFRAG)** Taxonomy
EU Corporate Sustainability
Due Diligence (CSDD)
Directive → CS3D
Due Diligence Obligations Corporate Level Reporting
Good Corporate Citizen Annual Corporate
Sustainability Reporting

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Environmental, Social and corporate Governance (ESG)
* Revised / recasted Non-Financial Reporting Directive (NFRD)
** EU Sustainability Reporting Standard (ESRS) / European Financial Reporting Advisory Group (EFRAG)
Mandatory Human
Rights & Environment
Due Diligence (MHREDD)
Duty
of Care
German Supply
Chain Act
EU Member
State Acts
EU Ban of Forced Labour
EU Corporate Sustainability
Reporting Directive (CSRD)*`
EU Sustainable
Finance Disclosure
Regulation (SFDR)
Standards
(ESRS/EFRAG)** Taxonomy
EU Corporate Sustainability
Due Diligence (CSDD)
Directive → CS3D
Due Diligence Obligations Corporate Level Reporting
Good Corporate Citizen Annual Corporate
Sustainability Reporting
Financial Sector Reporting
Sustainable Investment
Reporting

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EU NLF: Product Level Reporting

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EU NLF: Financial Reporting & New Liabilities

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Convergence of ESG and Product Compliance
Minamata
Convention
(2013)
Stockholm
Convention
(2001)
Basel
Convention
(1989)
REACH
Regulation
WEEE Directive
RoHS
Directive
Responsible
Minerals
Conflict Minerals
Regulations
Manufacture
Mercury-Added
Products
Use of Mercury/
Mercury
compounds in
production
processes
Inadequate
Treatment of
Mercury Waste
Illegite
manufacture
and use of
POPs
Inadequate
Handling,
Collection,
Storage, and
Disposal of
Waste
Illegal
Transboundary
Movement of Waste
German Supply Chain Act
Improper Use of
Security Forces
International
Conventions
(EU) Legal
Requirements
CLP Regulation
Mercury
Regulation
POPs
Regulation
Current State Future State
EU SCIP
Forced Labour
US UFLPA
EU FLB
Recycled Content
EU
RAPEX
PFAS Regulation?
Limited data
sharing between
EU systems.
EU RAPEX - non-
integrated
regulator system
showcasing
products removed
/ restricted from
EEA
EU EPREL - an
existing EU
labelling data for
energy related
products.
EU SCIP was on
step on a long
road…
EU
EPREL
(old)
EU
RAPEX
(old)
EU ICSMS
- Register
Productda
ta (EU
DPP)
Inter Connected
Systems ..
ICMS -
Information and
Communication
System on
Market
Surveillance ..
European
Dataspace for
Smart Circular
Applications
(EDSCA)
connected with
the Register for
DPP.
EU FLB (Forced
Labour Ban)
database
EU SCIP
database -
REACH 2.0
EU SCIP -
REACH 2.0
EU FLB
Database
Extended
Minerals
Reporting
Silos breaking up

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The Twin Transition

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The Twin Transition (ii)
EU Green Deal, COVID-19 Pandemic, Post-Pandemic Recovery & Resilience
EU Green Deal
COM 2019/640
EU Climate Target Action
Plan COM 2020/562
EU Chemicals Strategy for
Sustainability COM 2020/267
EU New Legal Framework

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The Twin Transition (ii)
▸ COVID-19 Pandemic:
▹ Lack of connected systems to identify issues and
manage resources efficiently.
▹ Post pandemic recovery for EU industry severely
hampered by lack of data to manage industrial
recovery.
EU Green Deal, COVID-19 Pandemic, Post-Pandemic Recovery & Resilience
EU Green Deal
COM 2019/640
EU Climate Target Action
Plan COM 2020/562
EU Chemicals Strategy for
Sustainability COM 2020/267
EU New Legal Framework

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The Twin Transition (ii)
▸ COVID-19 Pandemic:
▹ Lack of connected systems to identify issues and
manage resources efficiently.
▹ Post pandemic recovery for EU industry severely
hampered by lack of data to manage industrial
recovery.
EU Green Deal, COVID-19 Pandemic, Post-Pandemic Recovery & Resilience
EU Green Deal
COM 2019/640
EU Climate Target Action
Plan COM 2020/562
EU Chemicals Strategy for
Sustainability COM 2020/267
EU New Legal Framework
Shaping EU Digital Future
COM 2020/67
EU New Industrial Strategy
COM 2020/102
EU Digital Decade
COM 2021/118
EU State of The Union 2020
▸ NextGenerationEU project:
▹ €806.9 billion funding.
▹ Digital transformation of
the EU.

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EU Digital Twin

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EU Current State: Administrative Systems
• Systems built on top of other systems,
over several decades.
• Customised solutions implemented to
meet very specific needs.
• Lack of unified data model, resulting
in data being replicated, with very little
data sharing capabilities.
• Resource intensive data management
activities to support systems.
• Costly on-premise systems and
storage.
• Reliant on historical data feeds
between systems and other sources.
• Leading to reactive analysis and
decision making becoming the norm.

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EU Future State: Digital Twin Project
• EU has been embarking on a digital
twin transition project.
• Existing state systems are being
transitioned onto a digital twin.
• The new systems are being designed
with much more interoperability
between different systems.
• The net result will more efficient
processes, with cleansed data being
shared onto the new ‘system of
systems’ emerging …

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EU System of Systems
Internal Systems, Industry,
Infrastructures, Skills, Informed
Decision Making

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EU System of Systems (i): EU Digital Compass and the EU Digital Decade
Europe's Digital
Transformation:
• People.
• Industry.
• Sustainable and
Prosperous digital future.
Europe's Digital Decade:
Digital Rights and Principles.
• Multi-Country Projects.
• International Projects.
• Strategic Roadmaps.
• Digital Economy and
Society Index.

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EU System of Systems
(ii): EU New Legal
Framework

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EU System of Systems (iii): Data Spaces Defined
Data Spaces Core Concepts:
• Collaborative data sharing environments.
• Provision data against the needs of a given ecosystem or other specific requirement(s).
• Members maintain trust and data sovereignty between each other.
• Data storage is maintained at source and not centrally.
• Data spaces enable more accurate datasets. Upon which further analytical methods would theoretically result in more
informed decision making.

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EU System of Systems (iv): EU Data Spaces

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EU System of Systems (v): New Infrastructures

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EU System of Systems (vi): Everything Becomes Connected!!
▸ Everything is
connected.
▸ Real-time data
collection,
analytics and
decision making
aided by AI.
▸ Extended
dataspaces
enabling
enhanced
decision making.
▸ Industry
becomes more
accountable.

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Questions?

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