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Kumi and Circulor hosted an essential webinar on how to navigate and prepare for the EU Batteries Regulation due diligence obligations, to which companies must implement by August 2025.


Please fill in the form to access the webinar.

Kumi und Circulor veranstalteten ein wichtiges Webinar über die Navigation und Vorbereitung auf die Sorgfaltspflichten der EU-Batterieverordnung, die Unternehmen bis August 2025 umsetzen müssen.

Webinar - Due Diligence im Rahmen der EU-Batterieverordnung: Vorbereitung auf die Compliance-Anforderungen des nächsten Jahres

Kumi 和 Circulor 举办了一场重要的网络研讨会，内容涉及如何导航和准备欧盟电池法规尽职调查义务，公司必须在 2025 年 8 月之前履行这些义务。

网络研讨会 - 根据欧盟电池法规进行尽职调查：为明年的合规性要求做准备

Kumi is a specialist consultancy in implementing responsible business practices in global supply chains and have been working with the European Commission to create the Implementation Guidelines for the due diligence requirements in the EU Batteries Regulation. These due diligence requirements have far-reaching implications for the global battery industry and will drive progressive improvement in the sustainability of this sector. 

In this webinar, Kumi and Circulor discuss in detail:

They also discuss the management systems and due diligence actions that companies will need to undertake to identify, assess and respond appropriately to social and environmental risks in battery supply chains. 

If you have any questions on the insights shared in this webinar, or how Circulor can support your business, please set-up a meeting with our team 

Circulor and Kumi EU Battery Regulation Due Diligence Webinar Transcript:

•	James Lewry - Kumi, Client Services Director 

•	Alexander Graf - Kumi, Senior Consultant 

•	Andrew Britton - Kumi, Founder and CEO 

•	Douglas Johnson-Poensgen - Circulor, Founder and CEO 

•	Ellen Carey, Circulor - Chief External Affairs Officer

A warm welcome and thank you for joining our webinar on the due diligence requirements of the new EU Batteries regulation.

There's been a big growth in corporate sustainability regulation in recent years, particularly in Europe, and there's even more on the way. We've seen national acts like the LKSG in Germany and the Norwegian Supply Chain Act lay the groundwork for Europe-wide regulation like the forthcoming CSDDD and the EU Deforestation Regulation.

But the EU Batteries Regulation is probably one of the most demanding we've seen to date.

Its due diligence requirements go well beyond what many companies are doing right now, setting a new benchmark in transparency and accountability.

Part of the Europe's Green Deal, the Batteries Regulation will embed sustainability and transparency across the entire life cycle of batteries within the EU market. It requires due diligence to identify human rights impacts and environmental harm in high-risk supply chains across all stages of the battery life cycle.

It's also one of the most demanding sets of requirements to date. So, in the next hour we will demystify the due diligence requirements of the new regulation. We'll cover what businesses tuning in to this webinar need to know to comply by August 2025, which is when the requirements take effect.

We'll also see how the regulation requires collaboration, not just data from the OEM's and other Economic Operators, and across the entire supply chain. This also includes the role of neutral third parties to address concerns of commercial confidentiality and data integrity in supply chain transparency. So, to help us unpack the regulation, we have a panel bursting with expertise.

I'm James Lewry. I am the Client Services Director with Kumi and I am lucky enough to moderate a real expert panel today.

Andrew Britton is Kumi's founder and CEO, and he's been instrumental in helping to shape due diligence policy and practice with the OECD and the European Commission on Industry Standards and compliance frameworks. Andrew has been leading Kumi’s development of the due diligence implementation guidance for the EU Batteries Regulation.

Next up, Doug Johnson-Poensgen is the founder and CEO of Circulor and a pioneer in establishing traceability across the battery supply chain. Doug will bring his first-hand experience in the Battery Pass project to our discussion today to help us understand how these regulations can be scaled across industry.

Next, Ellen Carey is Circulor's Chief External Affairs Officer.  She has over 15 years’ experience of bridging the gap between policy and business and she'll be sharing her insights on supply chain transparency and accountability, drawing on her international and US experience, where she helped integrate physical tracing into the US Clean Vehicle Tax Credit.

And finally, Alex Graf is Kumi's senior lead on the due diligence guidelines and he'll be taking us through his first-hand knowledge of the requirements.

Now, before we start a big thank you to all of you that have sent questions for our panel today, we are going to try and get through as many as possible and there will be a follow up FAQ to this webinar with answers and if we didn't get time to cover your question, don't worry. And don't forget you can also ask questions during the session in our Q&A box on the Zoom panel which our team will answer as they go.

So, with that, let's hear from Alex and he will give us an overview of the new regulation and what it means for business. Alex.

Thank you, James. As we all know, EU Batteries Regulation has come into force in August 2023 and companies are expected to gradually implement its requirements over the next couple of years. Requirements such as, for example, carbon footprint, different recycling targets and supply chain diligence among others.

Not only that, the EU Batteries Regulation is, actually, not the only kind of EU legislative effort connected to supply chain due diligence. There is, for example, the EU Conflict Minerals Regulation that is already in force for a couple of years. And, of course, there's also, as we have heard from James, the much broader, much larger scale Corporate Sustainability Due Diligence Directive.

As for diligence in the battery supply chain, the expectations will come into force in August 2025 leaving companies with roughly nine months in order to demonstrate successful implementation of the requirements.

Now, despite this actually rather short time frame, there is still not much information out there. The regulation is rather clear as to what the requirements are, but in our work with companies, we can clearly see that they are struggling to understand actually what is needed in terms of what is expected from them and in terms of how to implement these requirements.

This combination of, well, a rather short time frame together with actually little knowledge that is out there is actually putting quite some pressure on companies.

Now, if you're asking yourself, what do we actually have to do, here is the answer.

This is what you have to do. This is what you have to do until August 2025. The only exception being reporting and disclosure which, at least, based on the current state-of-the-art, is due one year later, so, August 2026 but this is information still to be confirmed.

The extent of the regulation lists the set of international frameworks that builds the basis of all the due diligence expectations in the regulation among these, the so-called OECD due diligence guidance.

In short, the OECD Minerals Guidance and the cross-sector OECD due diligence guidance for responsible business conduct. For those of you familiar with the OECD guidance, probably most, if not all, of these elements, as you can see them here, are not new in that sense. And in that sense, the regulation is also not reinventing the wheel, the only exception being the so-called third-party verification. 

Third party verification is a mechanism in order to assess and approve conformity with requirements in EU product legislation, such as the EU Battery Regulation.

And, as you can see here, this is actually quite a lot of things that you need to implement until August 2025, especially if you have not already some sort of due diligence process, OECD aligned due diligence process, in place. 

Interestingly, in our work, in our support of companies to prepare them for the Battery Regulation, we can often see a very strong focus on policies. “Can you help us establish a policy?” And, from there, directly jumping, then, into third-party verification, “What do we need to do in order to get third-party verified?” And reporting, “What needs to go into the report?”

However, while these are important aspects and items of the due diligence requirements in the regulation, these are neither the most challenging ones nor the most important.

In fact, in our conversations with companies, the vast majority of them would immediately say that the main sticking point for them is supply chain transparency, so, the so-called system of control and transparencies - Article 49.2.

This is for companies to collect a minimum amount of reliable information in order to understand the supply chain.

Who are your suppliers beyond your direct business relationships? What are they doing and what are they doing in terms of due diligence?

It is already very challenging and difficult actually to only collect the most basic information about the supply chain beyond direct suppliers.

In addition, core aspects of due diligence or the core aspects of the diligence are what you can see in terms of the management processes, risk assessment and risk response. So, identifying and understanding what risks and also what already existing impacts are in your supply chain and what action needs to be taken about that.

Together, these are the elements that should be in the focus of supply chain due diligence. And when you ask ‘why are they challenging?’, well, one of the main reasons is all these elements that are just listed; supply chain transparency, risk assessment, risk response but, actually, also grievance mechanisms, as you can see them on this list. They all require some sort of supplier engagement.

And, as you probably know from your own experience, supply engagement requires time. It requires effort, it requires collaboration, trust, etc.

Now, apart from the due diligence requirements as such in the regulation, the regulation is also quite specific in terms of scope.

First, an extent of the regulation lists a specific set of risks in terms of environmental and social and human rights risks. Two important points. Number one, I just mentioned, this list not only includes either environmental or social and human rights risks, but both.

Number two, this list is non exhaustive meaning that companies are actually required to look into other risks and, if identified, to act accordingly and address them. This includes first and foremost, but not exclusively, the so-called Annex 2 risks in the OECD Minerals guidance.

So, we are talking here about, for example, severe governance risks such as conflict financing, corruption and bribery, or money laundering.

In addition, the Battery Regulation also defines the supply chain focus. This means first of all, that only four raw materials are actually in scope of the regulation. Four raw materials; nickel, lithium, cobalt and graphite as they are needed in order to produce the so-called battery active material. 

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Due Diligence under the EU Batteries Regulation: Preparing for next year’s compliance requirements

Please fill in the form to access the webinar.

JUST AUTO: Tracing tyres and the EU Deforestation Regulation

POWER TECHNOLOGY: Powin and Circulor link on battery passports for energy storage systems

Powin and Circulor partner to advance Battery Passports for Utility-Scale Energy Storage Systems

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BATTERY PASS: Path Cleared for the Battery Passport

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