UNECE’s Efforts to Improve Supply Chain Diligence and Digital Connectivity of Transit Corridors

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UN Economic Commission

The transition to digital exchange of trade data and documents has the potential to increase efficiency, decrease costs, improve transparency, and make data more accessible and analyzable. However, current efforts to digitalize data and documents are fragmented and focus on specific parts of the supply chain, creating challenges for interoperability and access to markets, exports, and sustainable development.

As supply chain diligence regulations gain traction, importers are facing pressure to provide verifiable sustainability data for their entire supply chains, not just the final products. In response, UNECE is working to expand transparent supply chain tracing and strengthen the digital connectivity of 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).

UNECE Executive Secretary Tatiana Molcean emphasized the need for innovative and digital solutions to address trade disruptions and promote inclusive progress. She also highlighted the potential of UNECE’s digital tools to streamline cross-border transactions, improve customs procedures, and promote ethical global trade.

Italian Ambassador and Permanent Representative to the International Organizations in Geneva, Vincenzo Grassi, pointed out that UNECE’s digital tools and standards regulate information about the origin and sustainability of materials and products. These tools facilitate real-time sharing and storing of reliable information, aiding in risk and operations management. The Government of Italy will host the 43rd UN/CEFACT Forum in Rome in December 2024 to further discuss these issues.

Promoting responsible consumption and production choices

In recent years, there has been a growing demand for enhanced sustainability in products and processes, leading to increased scrutiny on sustainability claims. With this comes the risk of greenwashing, as seen in a 2021 European Commission report where 59% of environmental claims had no evidence and 42% were deemed false or deceptive. To address this, credible evidence and disclosures are essential. UNECE is working to promote responsible consumption and production choices by developing digital product passports that provide information on products, materials, production conditions, and sustainability performance.

UNECE is currently finalizing its new Recommendation No. 49, “Transparency at Scale,” which will introduce the United Nations Transparency Protocol (UNTP). This protocol aims to share critical information across global supply chains in a way that is accessible to all. It is being discussed at the 42nd UN/CEFACT Forum, the 4th meeting of the UNECE’s Team of Specialists on Environmental, Social, and Governance (ESG) Traceability of Sustainable Value Chains in the Circular Economy, and the 30th UN/CEFACT Plenary. It is set to be adopted in 2025.

The UNTP is scalable and accessible to businesses of all sizes and technical capabilities, making it a framework that can be easily implemented. It represents a significant step towards a more transparent, equitable, and sustainable global economy.

Digital connectivity of transit corridors for sustainable growth

The disruptions in supply chains have led to more complex, costly, and uncertain export control regimes, creating risks for global trade processes. To address this, UNECE is also focusing on the digital connectivity of transit corridors. Reducing trade costs is crucial for promoting growth and sustainable development, and UNECE is working to achieve this through the adoption of digital trade facilitation measures, such as electronic data and document exchange across borders.

UNECE’s information exchange standards, including Single Window, UN/EDIFACT, and UN/LOCODE, ensure seamless and uniform electronic data exchange in the trade, transport, and logistics sectors, reducing the time, cost, and errors of information exchange. These standards have already been implemented along the Trans-Caspian Transport Corridor in Central Asia and the European Union Single Window Environment for Customs and can be relevant in other regions of the world.

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