The transition to digital trade data and document exchange has the potential to increase efficiency, reduce costs, increase transparency, and allow for better accessibility and data analysis. However, current efforts to digitize trade data and documents are fragmented and focused on specific parts of the supply chain, posing challenges for interoperability and ultimately hindering economic growth and sustainable development.
As demand for verifiable sustainability data throughout the entire supply chain increases, UNECE is working to expand transparent supply chain tracing and strengthen digital connectivity in transport corridors to support regional and global economic integration. These efforts are the focus of the UNECE Sustainable and Digital Trade Facilitation Week, which includes the 42nd UN/CEFACT Forum (8-10 July) and the 30th UN/CEFACT Plenary (11-12 July).
“In order to address current global challenges, we must constantly explore innovative and digital solutions,” stated UNECE Executive Secretary Tatiana Molcean at the opening of the UNECE Sustainable and Digital Trade Facilitation Week in Geneva. “By utilizing UNECE digital tools, we can streamline cross-border transactions, improve customs procedures, and promote more resilient and ethical global trade.”
Italian Ambassador and Permanent Representative to the International Organizations in Geneva, Vincenzo Grassi, emphasized the importance of UNECE’s digital tools and standards in standardizing information on the origin and sustainability of materials and products. “These tools facilitate real-time sharing and storage of reliable and up-to-date information, allowing for improved risk and operations management. To further facilitate discussions on these issues, the Government of Italy will host the 43rd UN/CEFACT Forum in Rome from 10-12 December 2024.”
Ensuring more responsible consumption and production
In recent years, there has been a growing demand for enhanced sustainability in products and processes, as well as transparent corporate reporting on sustainability. This shift has affected consumer preferences, business practices, capital access, and regulatory measures, such as the EU’s due diligence, corporate sustainability reporting, green claims, and deforestation legislation, which have significant impacts on businesses.
However, according to a 2021 European Commission report on greenwashing, 59% of environmental claims lack evidence and 42% are considered false or deceptive. As scrutiny on verifiable sustainability claims increases and the risk of greenwashing grows, credible evidence and disclosures are essential. Value chain transparency, supported by high-integrity data, incentivizes companies to meet higher sustainability standards.
To promote more responsible consumption and production choices and encourage circular business models, UNECE has developed recommendations and standards for digital product passports. These passports provide information on products, materials, production conditions, and sustainability performance to inform consumers and businesses.
UNECE is currently finalizing its new Recommendation No. 49 “Transparency at Scale,” which will introduce the United Nations Transparency Protocol (UNTP) to establish a means for sharing critical information across global supply chains in an accessible manner. This recommendation will be discussed at both the 42nd UN/CEFACT Forum and the 30th UN/CEFACT Plenary, with plans for adoption in 2025.
The UNTP aims to combat greenwashing and ensure that businesses adhering to rigorous ESG standards can effectively communicate their credentials. By doing so, it seeks to restore consumer confidence and reward businesses for their genuine commitment to sustainability. The most important aspect of the UNTP is its scalability and accessibility to businesses of all sizes and technical capabilities, thanks to its detailed technical specifications. It provides a framework that can be implemented with minimal barriers to entry and represents a significant step towards a more transparent, equitable, and sustainable global economy.
Digital connectivity of transport corridors to promote sustainable growth
Due to disruptions in supply chains, export control regulations have become more complex, costly, and uncertain, creating risks for global trade processes. Economic operators face increased reporting and documentation requirements, changing lists of controlled goods, sanctions, and varying permit procedures. Another key focus of UNECE’s work is the digital connectivity of transport corridors.
Reducing trade costs is crucial for enabling economies to effectively participate in regional and global value chains, promote growth, and achieve sustainable development. For example, the adoption of digital trade facilitation measures, such as seamless electronic data exchange across borders, has the potential to significantly reduce trade costs by over 15% in participating States of the United Nations Special Programme for the Economies of Central Asia (SPECA), which includes Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.
UNECE is working to strengthen the digital connectivity of transport corridors through the use of its information exchange standards, such as Single Window, UN/EDIFACT, and UN/LOCODE. These standards ensure uniform and seamless electronic data exchange in the transport and logistics sectors, significantly reducing the cost, speed, and error of information exchange.