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Sustainability, the Starting Point for Brand Reputation

The regulatory scenario and the key elements that give value to a company according to Ada Rosa Balzan, founder and president of ARB S.B.p.A.


Sustainability is an indispensable tool for the business world today. In effect, with a detailed risk management analysis, a sustainable company achieves better market positioning, increases brand reputation and can access the banking system with more favorable rates and conditions.
2025 will be an extremely important year for the numerous companies that will have to comply with the new Corporate Sustainability Reporting Directive, the CSRD, but also in view of 2026 and the CSDDD (Corporate Sustainability Due Diligence Directive) which requires large companies to constantly monitor their supply chain from both a social and environmental perspective.
Companies are also required to disclose information on the material impacts, risks and opportunities arising from their direct and indirect business relationships in the upstream and/or downstream value chain. Such information does not necessarily concern every actor in the value chain.
There are circumstances in which an enterprise is not able to collect the upstream and downstream value chain information as required. In these cases, the company must estimate what needs to be disclosed using reasonable and sustainable information, such as average sector data and other proxies. For the first three years, if the information is not available, the company must explain the efforts made to obtain it, the reasons why it could not acquire it, and its plans to obtain it in the future. The company may, however, limit itself to providing information on internally-available policies, actions and objectives.
All this does not just concern large companies but cascades down to suppliers, who, rather than a legal obligation, will have a duty to fulfil in order to stay in the market.
Another no less important directive regards green claims. In this particular historical context, the market requires sustainability in both B2B and B2C. Today's consumers are increasingly aware and demanding and communication must therefore also be carefully worded, starting of course with concrete facts and initiatives that the company has already put into play on this front.
This is why generic or misleading phrases such as “zero impact” should be sanctioned since it is scientifically impossible for an object to be produced, used or disposed of without having an impact on the environment. Jewelry and fashion are no exception. On the contrary, this is so true that one of the more immediate objectives is that of an ethical, fair and sustainable supply chain, both from an environmental and social point of view and in terms of respect for people.
It is therefore essential to be able to demonstrate adequate supervision of these issues in the choice of materials and suppliers.

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