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For many years, plastic has been an inseparable part of business activities and everyday life. From food and beverage packaging to the automotive industry, almost every sector relies on plastic. The reasons are simple: it is inexpensive, flexible, and efficient. However, the question is now shifting. What happens when the material that has long been the most economical starts becoming increasingly expensive? Recently, plastic is no longer viewed as just another raw material. It has become a recurring topic in boardrooms, public policy agendas, and everyday discussions, particularly among business players such as UMKM. This is not driven by new innovation, but rather by rising prices that are beginning to put pressure on many industries. Behind this trend are multiple interconnected factors. Geopolitical tensions in energy-producing regions, post-pandemic supply chain disruptions, and fluctuations in global oil prices all have a direct impact on the petrochemical industry. As plastic is derived from oil and gas, the effects are inevitably felt across the sector. At the same time, environmental concerns can no longer be overlooked. Ocean pollution, the waste crisis, and emission reduction targets are pushing many countries to tighten regulations. This means companies are facing not only rising raw material costs but also additional expenses related to waste management obligations, recycling requirements, and increasing demands for transparency. In other words, today’s plastic prices no longer reflect production costs alone—they are beginning to incorporate environmental costs that were previously overlooked. This signals a significant shift, where economic and environmental factors are becoming increasingly interconnected. Time to Reduce Plastic and Transition to Sustainable Materials Why Act Now? Rising plastic prices highlight an increasingly unstable dependency Fossil-based plastics are highly vulnerable to geopolitics and energy price fluctuations Environmental costs have not been fully reflected in pricing Global regulatory pressure is intensifying   The Direction of Change: Emerging Material Alternatives 1.      Recycled Plastics (rPET, rPP) Recycled plastics such as rPET (recycled polyethylene terephthalate) and rPP (recycled polypropylene) are among the fastest to be adopted, as they remain within the same “family” as conventional plastics. These materials are derived from collected plastic waste, reprocessed, and reused as raw materials. Their main advantage lies in reducing dependency on virgin plastics while lowering the carbon footprint of production. However, challenges remain in terms of quality and availability. Not all plastic waste can be recycled to the same standard, and collection and sorting infrastructure is still limited in many countries. As a result, recycled plastics are often more expensive than virgin plastics. 2.      Bioplastics (Plant-Based) Bioplastics are made from renewable resources such as corn, sugarcane, or cassava. Unlike conventional fossil-based plastics, they are designed to reduce reliance on petroleum. Some types of bioplastics are also biodegradable or compostable, allowing them to break down more quickly under certain conditions, making them an attractive alternative from an environmental perspective. That said, bioplastics are not without criticism. Production costs remain relatively high, and in some cases, they compete with food resources due to their reliance on agricultural inputs. Additionally, not all bioplastics decompose naturally—some require specialised industrial facilities. 3.      Natural Fibre-Based Packaging (Paper, Bamboo and relevant materials) Materials such as paper, cardboard, and bamboo are increasingly used as substitutes for plastic, particularly in single-use packaging. Their primary advantage is that they are derived from renewable sources and are generally more easily biodegradable. They are also often more readily accepted by consumers, who perceive them as more environmentally friendly. However, trade-offs must be considered. Paper production, for instance, requires significant amounts of water and energy and may contribute to deforestation if not managed sustainably. In terms of performance, these materials are not always as durable or flexible as plastic, particularly for products requiring high strength or moisture resistance. 4.      Reusable Systems (Refill / Return Models) Unlike material-based approaches, reusable systems focus on reducing the need for packaging production altogether. This concept promotes the use of containers that can be reused multiple times, either through refill systems or return schemes. This model is considered one of the most effective solutions within the circular economy  framework, as it directly reduces waste volume. Over time, it can also create cost efficiencies when implemented at scale. However, the main challenge lies in behavioural change. Reusable systems require active consumer participation, as well as supporting infrastructure such as return logistics and proper sanitation processes.   Strategic Opportunities Reducing risks associated with raw material dependency Enhancing brand value and consumer trust Achieving long-term efficiency through circular systems Gaining access to global markets with stricter ESG requirements   Ultimately, rising plastic prices are not merely a cost issue they are a signal of a broader shift. Industries that can adapt to more stable, sustainable packaging systems will be better positioned to navigate future global uncertainties and build resilience. The increase in plastic prices, driven by geopolitical dynamics, highlights an increasingly clear reality: dependence on fossil-based materials is not only unsustainable but also unstable. When global supply chains are disrupted, the impact quickly cascades into production costs and consumer prices, exposing the fragility of a system once considered efficient. The transition towards approaches such as the circular economy is no longer just a strategic option, but a necessity for achieving long-term stability. The adoption of more sustainable packaging, whether through recycled materials, natural alternatives, or reusable systems, represents a critical step in reducing risk while addressing growing environmental pressures. Reference: Hamapu, A. (April 7, 2026). Harga Plastik di Batam Naik hingga 30 Persen, Disperindag: Dampak Global. DetikSumut. https://www.detik.com/sumut/berita/d-8432780/harga-plastik-di-batam-naik-hingga-30-persen-disperindag-dampak-global (August 15, 2024). Pemerintah Siapkan Kebijakan Ekonomi Sirkular untuk Industri Plastik. ANTARA News. https://www.antaranews.com/berita/4263199/pemerintah-siapkan-kebijakan-ekonomi-sirkular-untuk-industri-plastik (April 10, 2026). Harga Plastik Naik, Industri Didorong Bangun Ketahanan di Tengah Tekanan Global. Warta Ekonomi. https://id.investing.com/news/economy-news/harga-plastik-naik-industri-didorong-bangun-ketahanan-di-tengah-tekanan-global-2947794

During the 2026 Eid al-Fitr celebrations, Jakarta a city long associated with severe air pollution recorded a remarkable improvement in air quality. For a brief period, Jakarta even surpassed global cities such as Seoul and London in terms of air quality. This event is not merely a fleeting piece of good news, but a significant reflection for sustainability discourse, particularly in the context of urban living and carbon emissions management. Jakarta Air Quality Data During Eid al-Fitr 2026 Throughout the Eid al-Fitr holiday, Jakarta’s Air Quality Index (AQI) hovered around 50, classified as ‘good’—an achievement rarely seen under normal circumstances. In comparison: Seoul recorded a higher AQI than Jakarta London also posted figures above Jakarta In other words, Jakarta briefly transformed into one of the world’s cleanest major cities. Factors Behind Jakarta’s Improved Air Quality Reduced Vehicle Volume Millions of residents left the city to return to their hometowns, leaving streets deserted. Congestion and vehicular emissions dropped dramatically. Road transport remains the main contributor to Jakarta’s air pollution. Slowed Industrial and Office Activities The extended holiday saw many industries and offices close temporarily. Emissions from these sectors fell significantly. Logistics activity also slowed. Lower Energy Consumption With business activities reduced, electricity usage fell. Emissions from power generation also declined. There is a direct correlation between energy consumption and air quality. Direct Positive Impacts Observed by Residents The sky appeared bluer, and the air felt fresher. Visibility increased. Pollution exposure was noticeably reduced. Urban quality of life improved as pollution was curbed. Sustainability Insight: Jakarta as a Low-Emission City Experiment The Lebaran 2026 phenomenon served as a ‘natural laboratory’ for a sustainable city. Key takeaways include: Air pollution is reversible. Changes in human activity have immediate impact. Large cities have significant potential to transform towards environmental friendliness. Jakarta could genuinely become a low emission city with sustained effort. Comparison with Global Cities Although Seoul and London have more advanced transport systems and environmental regulations, air quality is still highly influenced by: Stable economic activities and daily mobility Geographical and weather factors Jakarta experienced an extreme drop in activity, which instantly improved air quality Post-Lebaran: Air Quality Deteriorates Again Unfortunately, the improvement proved temporary. Once residents returned: Vehicles again crowded the streets Industrial and office activity resumed Emissions increased, and Jakarta’s AQI returned to ‘unhealthy’ levels within days This confirms that Jakarta’s pollution problem is not unsolvable, but has yet to be managed consistently. Implications and Recommendations for Sustainability Strategy Government Strengthen public transport Enforce emission restrictions Provide incentives for electric vehicles Adopt sustainability-based urban planning Business Sector Implement ESG strategies Reduce operational carbon footprint Embrace hybrid working policies Society Reduce private vehicle use Increase environmental awareness Adopt sustainable lifestyles Conclusion Jakarta’s experience during Lebaran 2026 demonstrates that clean air is not an impossibility. However, without systemic changes and consistent policy, this achievement will remain seasonal and temporary. Is Jakarta ready to maintain better air quality in a sustainable manner? References Oswaldo, I. G. (11 March 2026). 143.9 Million People Predicted to Travel Home for Lebaran 2026, Majority Using Private Cars. Detik Finance. https://finance.detik Kencana, M. R. (14 March 2026). With Residents Away, Jakarta’s Electricity Consumption Drops by 2,000 MW During Lebaran 2026. Liputan6.com . https://www.liputan6.com Huda, L. (9 April 2025). After Lebaran Holiday, Jakarta’s Air Quality Unhealthy Today. Kompas.com . https://megapolitan.kompas.com/read/ (2024). World Air Quality Index (AQI) Ranking. IQAir. https://www.iqair

The Global Organic Textile Standard (GOTS) is the leading global standard for organic fibre textiles, covering the entire supply chain from raw materials to labelling. It emphasises environmental, social, and value chain transparency. Although voluntary, GOTS is widely recognised in the textile industry as a mark of credibility and sustainability commitment. Global Organic Textile Standard (GOTS) Version 8.0 GOTS Version 8.0 was released on March 2, 2026, and takes effect for all certified entities on March 1, 2027. While a one-year transition period applies, early implementation is strongly encouraged. Previous GOTS versions focused on organic fibre content, chemical restrictions, and social requirements aligned with ILO conventions. Version 8.0 maintains this foundation and adds a systematic, documented due diligence system. Companies must now demonstrate ongoing risk identification, prevention, and mitigation, particularly regarding human rights, homeworkers, and migrant workers. Environmentally, GOTS Version 7.0 focused on prohibited chemicals and waste treatment. GOTS Version 8.0 strengthens chemical input controls with comprehensive evaluations, clarifies approval criteria, and raises expectations for energy efficiency, emission reduction, and wastewater management. This aligns with growing global demands for transparency and reduced environmental impact in the textile industry. Previous versions required Scope and Transaction Certificates for traceability. GOTS Version 8.0 clarifies the system with documentation confirmation, material segregation, and stricter transaction oversight. Companies must maintain an internal management system that consistently documents the flow of organic materials. Governance in GOTS Version 7.0 focused on normative social compliance. Version 8.0 shifts to emphasise management accountability, grievance mechanisms, and transparency of internal policies, moving from compliance to a strategic approach to sustainability management. Structure and Main Contents of GOTS Version 8.0 Standard Principles & Scope Operational scope and material thresholds. • Organic fibre content is at least 70%. • Includes processing, manufacturing, labelling, and distribution. • National legal compliance or GOTS (choose a more stringent one). Supply Chain & Traceability Integrity of organic material grooves. • Used a Scope Certificate (SC)  and Transaction Certificate (TC) . • Obligation to segregate organic matter from non-organic. • A strictly documented internal reporting system. Environmental Criteria Mitigation of the industry's ecological impact. • Efficiency of water and energy use.• Reduction of greenhouse gas emissions.• Comprehensive management of liquid and solid waste. Social Criteria & Governance Labor protection and accountability. • Prohibition of forced labor, child labor, and discrimination. • Special protection for migrant and domestic workers . • Implementation of grievance mechanism . Product Compliance Physical and technical quality standards. • Testing of maximum chemical residue values. • Special criteria for food contact textiles. • Application of the principle of product circularity . Chemical Inputs Control of process auxiliaries. • Strict evaluation and approval of dyes and auxiliaries . • Prohibition of hazardous materials based on RSL/MRSL lists. • Direct audit of chemical manufacturers.   The following presents a comparison between the focal areas of the GOTS Version 8.0 update and those of previous versions of the standard. GOTS Version 1-6 Organic Content & Fibre Integrity: Ensuring that the raw materials used were authentically organic. Input Approval: Establishing the foundational rules for verifying every substance that enters the production chain. Chemical Restrictions:  Implementing crucial bans on hazardous chemicals to ensure "clean" production from the start. GOTS Version 7.0 Environmental & Social Compliance: Introducing specific criteria that apply across the entire supply chain, not just the final product. Compliance-Based Structure:  Shifting the focus towards a more structured and monitored approach to standards. Future-Proofing:  Preparing the industry for emerging global challenges and stricter regulations. GOTS Version 8.0 GHG & Climate Management: Introducing mandatory requirements for monitoring carbon footprints and mitigating climate impact. Due Diligence & Governance:  Focusing on advanced, risk-based social due diligence to protect worker dignity. Circularity & Environmental Performance Data: Prioritising textile waste circularity, microfibre release control, and the provision of transparent, verifiable performance data. Core Updates and Strategic Implications Section / Clause GOTS Version 7.0 GOTS Version 8.0 Strategic Implications for Certified Entities Introduction & Scope Defines the standard’s aim to maintain organic integrity from raw material to final product.   Keeps the same goal but adds ESG integration and alignment with global due diligence frameworks. Only full textile products can be certified; mixed items must specify certified textile parts.   Mixed-product makers must adjust labels and ensure transparent, non-misleading claims.   Certification & Auditing Certification mainly based on on-site verification.     Introduces flexibility for digital and hybrid audits. Provides formal guidance for remote audit models (desktop, virtual, live-stream).   Allows hybrid audits and requires digital records, visual evidence, and secure document sharing.   Materials & Accessories No specific reference to microplastics or synthetics.   Prohibits virgin synthetics ; only recycled synthetics permitted, subject to strict documentation. Adds microplastic restriction aligned with EU & OECD environmental policies. Must update accessory specs to meet microplastic limits and ensure traceable recycled inputs.   Due Diligence Process Six-step process, aligned with OECD, recommended but not mandatory.   Due diligence becomes a core and mandatory  element of certification. Adds gender-aware due diligence, multi-source checks, stakeholder input, and clear communication.   Requires a documented due diligence system with risk, grievance, and remediation processes.   Environmental Criteria Focused on wastewater, energy, and waste management.   Expands to include GHG management, air emissions, textile waste, and circularity principles. Requires an Environmental & Chemical Policy and ZDHC wastewater rules.   Requires GHG targets, energy/water tracking, and ZDHC-aligned wastewater testing.   Human Rights & Social Criteria Six-step process, aligned with OECD, recommended but not mandatory.   Covers gender equality, harassment prevention, worker protection, and living-wage checks. Adds ILO instruments, climate-wellbeing clauses, and wage policy requirements.   Requires gender-equality policies, climate-resilience measures, and living-wage reviews.   Governance Criteria Limited attention to governance or anti-corruption.   Becomes a dedicated section of the standard. Adds governance rules on transparency, anti-corruption, conflicts of interest, and ESG disclosure. Adds requirement for supply chain actors to provide data (e.g., energy use, material inputs, transport distance, etc.) for product-level GHG emissions calculation.   Must set governance policies, assign ESG oversight, and publish periodic sustainability reports.   Product Technical Quality Defines residue limits (pesticides, heavy metals) and quality tests.   Tightens residue limits; introduces Section 5.3 Circularity Principles. Requires ISO 5354-1/2 GMO tests and protects pesticide limits.   Requires ISO GMO tests for cotton and circularity measures.     Overall, GOTS Version 8.0 establishes a more comprehensive sustainability framework for the textile industry, while its manual ensures the standard can be applied consistently, verified, and maintained as credible worldwide. For more details on the GOTS Version 8.0 update, please refer to the following material: Global Organic Textile Standard v 8.0 Manual for the Implementation of GOTS v 8.0

The Business and Human Rights (BHR) Compliance Assessment, known in Indonesia as  Penilaian Kepatuhan Pelaku Usaha terhadap Bisnis dan Hak Asasi Manusia (BHAM), is a tool created by the Indonesian Government to help monitor, evaluate, and encourage private companies to respect human rights. The Ministry of Law and Human Rights runs this program.   Primary Objectives of the BHR Assessment Risk Mitigation Helps companies find possible human rights violations in their supply chains and daily operations. Transparency Shows how well companies put human rights principles into practice. Global Competitiveness Ensures companies adhere to international standards, such as the United Nations Guiding Principles on Business and Human Rights (UNGPs), which are now important for global trade and EU rules. Protection of Workers and Communities Protects the rights of workers and indigenous peoples, and supports environmental sustainability along with business goals.   While BHR compliance may appear administrative, it offers significant benefits: The 12 PRISMA Assessment Components The 12 PRISMA Indicators (Programme for Business and Human Rights Risk Assessment) are the Ministry's main tool for assessing how well companies respect human rights. These indicators ensure companies pursue profit while also minimising negative impacts on people and the environment. Human Rights Policy:  The company must have a policy committing to respect human rights, supported by thorough due diligence and communicated to all employees and relevant stakeholders. Labour:  Respect for fundamental workers’ rights, including the prohibition of forced labour and child labour, and the assurance of freedom of association. Working Conditions:  Provision of a safe and healthy workplace, reasonable working hours, and fair wages in accordance with international standards or national regulations. Trade Unions:  Respect for workers’ rights to form or join trade unions and to engage in collective bargaining without discrimination. Privacy:  Protection of employees’ and customers’ personal data from misuse. Non-Discrimination:  Elimination of all forms of discrimination in employment (recruitment, promotion, remuneration) based on race, gender, religion, or disability. Environment:  Corporate responsibility for operational impacts, including pollution prevention and the protection of ecosystems. Land and Indigenous Peoples:  Respect for land rights and traditional practices, including the principle of free, prior and informed consent (FPIC) in land use. Corporate Social Responsibility (CSR):  CSR should be implemented as a corporate responsibility rather than merely charitable activities, and integrated into core operations to support human rights. Grievance Mechanism:  Provision of safe, confidential, and effective grievance channels for workers or affected communities. Supply Chain:  The company must conduct due diligence on suppliers to ensure human rights standards are applied throughout the production process. Business Impact of Human Rights Compliance:  Adherence to human rights enhances corporate reputation, prevents legal risks, improves performance outcomes, and facilitates licensing processes. The implementation of BHR compliance is grounded in Presidential Regulation (Perpres) No. 60 of 2023 on the National Strategy for Business and Human Rights (Stranas BHAM). This regulation mandates that ministries, agencies, and regional governments ensure that companies within their jurisdictions apply human rights principles in their operations. 2026 Update: Transition Towards Mandatory Compliance In 2026, Indonesia’s BHR Compliance Assessment moved from voluntary to the first phase of mandatory legal enforcement. New Presidential Regulation in Finalisation (Target: 2026) President Prabowo Subianto has approved the drafting of a new Presidential Regulation concerning Business and Human Rights Compliance Assessment. The draft is now being finalised with input from ministries, agencies, and civil society groups, with completion targeted for the end of 2026 to create a stronger legal foundation than before, so Indonesia has a consistent national compliance standard recognised internationally and aligned with OECD standards. Compliance Roadmap (2026–2028) The government has planned a step-by-step transition: Conclusion This assessment serves as human rights due diligence . Companies will be judged not just on their policies, but also on the real steps they take to prevent and reduce harm to people and communities. Indonesia’s 2026 regulatory update marks a clear move from voluntary commitment to enforceable accountability in business and human rights.   Reference : Muis, A., Prasetyo, T., & Yudha, A. (2024). LEGAL REVIEW OF THE READINESS OF BUSINESS IMPLEMENTATION BASED ON HUMAN RIGHTS IN THE MAKASSAR INDUSTRIAL AREA. https://doi.org/10.33059/jhsk.v19i1.9741 https://news.detik.com/adv-nhl-detikcom/d-8336826/prabowo-setuju-penyusunan-rancangan-perpres-soal-bisnis-dan-ham https://www.business-humanrights.org/en/latest-news/indonesia-president-approves-initiatives-for-presidential-regulation-on-business-and-human-rights-compliance-assessment/ https://www.makarim.com/news/follow-up-regulation-on-indonesian-private-sector-human-rights-due-diligence-expected-in-2026

In an era where 'sustainability' has become a cornerstone of corporate branding, the European Commission is moving to transform environmental marketing from a voluntary practice into a legally binding obligation. The proposed Green Claims Directive marks a pivotal shift in the European Green Deal’s agenda, aiming to eliminate 'greenwashing' and provide a standardised framework for the circular economy. For businesses operating within or exporting to the European Economic Area, the guidance outlines a transition from creative marketing to data-led substantiation. 1. Why 'Eco-Friendly Claims' is No Longer Enough The guidance marks the end of the "vague era." Terms such as 'eco-friendly' , 'sustainable' and 'green' are now considered misleading unless accompanied by specific, measurable evidence. The Commission’s stance is clear: if a claim cannot be verified, it cannot be made. To comply, businesses must narrow their focus. Instead of claiming a product is "better for the planet," they must specify the attribute—for instance, "50% reduction in water consumption during the dyeing process compared to the 2022 baseline." This level of granularity ensures that consumers are not misled by broad, emotive language. 2. The Life-Cycle Assessment (LCA) Mandate A fundamental pillar of the new guidance is the requirement for a Life-Cycle Assessment . Businesses can no longer "cherry-pick" positive data. For example, a company cannot claim a bottle is "environmentally superior" because it is plastic-free if the alternative material requires twice the energy to transport and three times the water to manufacture. The assessment must account for: Raw material sourcing: The impact of extraction or cultivation. Manufacturing processes: Energy intensity and chemical usage. Distribution: Carbon footprint associated with logistics. End-of-life: Whether the product is truly recyclable, compostable, or destined for landfill. 3. Pre-Approval and Third-Party Verification Perhaps the most significant administrative change is the introduction of mandatory ex-ante verification . Unlike previous regimes, in which authorities reacted to complaints, the new directive requires claims to be verified before  they reach the consumer. Accredited independent verifiers will be responsible for auditing the scientific data behind every claim. Once satisfied, they will issue a Certificate of Conformity , which is recognised across all EU Member States. This creates a "passport for claims," ensuring that a product verified in Ireland can be sold in France or Germany without undergoing secondary environmental audits. 4. Visual Cues and Implicit Greenwashing The guidance also covers non-verbal communication. The use of nature-inspired imagery—such as green leaves, forests, or endangered animals—on packaging is now under scrutiny. If these images suggest a greater environmental benefit than the product delivers, it may be flagged as implicit greenwashing. Similarly, the use of "earth tones" or specific shades of green to mislead consumers into believing a product is natural will be subject to regulatory review.   Detailed Summary of Regulatory Requirements Regulatory Pillar Detailed Requirement Compliance Standard (UK English) Scientific Substantiation Claims must be based on recognised scientific evidence and state-of-the-art methods. Must use primary data where available; secondary data must be high-quality. Comparative Claims Comparisons between products or competitors must be fair and use equivalent methodologies. Must compare the same functional unit and time period. Carbon Offsetting Claims of "carbon neutrality" via offsetting must be separated from actual emission reductions. Offsets must be high-quality, permanent, and transparently disclosed. Labelling Governance Proliferation of private labels is restricted to prevent "label fatigue." Labels must be transparent, third-party verified, and regularly reviewed. Public Disclosure Information supporting the claim must be made available via a physical link or QR code. Data must be presented in a clear, non-technical summary for consumers. Sanctions & Penalties Member States must impose "effective, proportionate, and dissuasive" penalties. Fines can reach up to 4% of annual turnover in the relevant Member State. Future Promises Claims about future goals (e.g. "Net Zero") require a concrete transition plan. Must include interim milestones and a dedicated budget for implementation. 5. Strategic Implications for UK and Global Exporters While the UK's Competition and Markets Authority (CMA)  operates its own 'Green Claims Code', the EU Directive is notably more prescriptive regarding third-party verification. UK businesses must recognise that compliance with British law may not automatically satisfy EU requirements. To prepare, companies should: Organise Internal Data: Centralise all environmental performance data to facilitate easy auditing. Review Supply Chains: Engage with suppliers to ensure they can provide the verified data points required for a Life-Cycle Assessment. Budget for Verification: Recognise that third-party certification will become a standard operational cost for marketing departments. Conclusion: The European Commission's guidance is designed to reward genuine innovation. It ensures that companies truly investing in decarbonisation and resource efficiency are not undercut by competitors using cheap, unsubstantiated marketing tactics. For consumers, it heralds a new age of transparency, where the "green" choice is finally one they can trust.       Reference : https://environment.ec.europa.eu/topics/circular-economy-topics/green-claims_en   https://www.insideenergyandenvironment.com/2025/12/the-european-commissions-new-green-claims-guidance-what-businesses-need-to-know/

The global fashion and textile industry is evolving. To meet growing demands for transparency and ethical production, Textile Exchange has introduced its most ambitious initiative, the Materials Matter Standard. This voluntary sustainability framework aims to transform the production and management of raw materials. It establishes a shared industry goal to produce clothing that respects the climate, nature, people, and animals. A Unified Vision for Sustainability For over two decades, Textile Exchange has developed material-specific standards. The introduction of the Materials Matter Standard marks a transition to a more unified, science-based approach. The criteria were developed over five years in collaboration with an International Working Group of brands, retailers, suppliers, and NGOs. The framework was pilot-tested in varied settings, across Peru's highlands to Italian factories, to ensure robustness and practicality. The standard establishes a common industry language. While it acknowledges each producer's unique context, it maintains a strong global benchmark. What Does the Standard Cover? The Materials Matter Standard focuses on the earliest and most impactful stages of the supply chain. It outlines detailed requirements for: Environmental Stewardship: Management of land, water, energy usage, and emissions. Social Responsibility: Ensuring fair and safe working conditions for all individuals involved in textile production. Animal Welfare: Strict requirements for the treatment of livestock. Chemical and Waste Management: Minimizing the environmental impact of primary processing. Currently, the scope includes recycled materials, previously covered by  the Global Recycled Standard  and Recycled Claim Standard , as well as Responsible Animal Fibres  such as wool, alpaca, and mohair. Why It Matters for Brands and Consumers For brands and retailers, this standard provides a transparent framework to support  sustainability claims.  By combining practice- and outcome-based criteria, it enables businesses to credibly verify their impact. While the Materials Matter Standard addresses raw materials, the existing Content Claim Standard (CCS)  will continue to ensure chain of custody and maintain tracking integrity from source to final product. Next Steps and Key Dates The transition has begun, with the final standard scheduled for publication in December 2025. Stakeholders should review current operations, assess gaps relative to the new criteria, and develop plans to achieve compliance. Prepare teams for training, participate in upcoming consultations, and monitor Textile Exchange updates to remain aligned with implementation milestones. 12 December 2025 Materials Matter Standard and Claims and Labeling Policy were published 31 December 2026 The Standard becomes effective ; voluntary audits can begin. 31 December 2027 The Standard becomes mandatory for all relevant prior scopes.   Together, by adopting the Materials Matter Standard, the industry can take tangible steps towards a future where sustainability is not just an aspiration, but a reality achieved through collective effort and commitment.   Reference : https://textileexchange.org/materials-matter-standard/

Industry is quickly changing. Packaging, which used to be overlooked and has now become a main focus. Starting 12 August 2026, the EU Packaging and Packaging Waste Regulation (PPWR) will change how businesses everywhere handle environmental responsibility. The PPWR is more than just a new set of rules. For everyone who works in Manufacturing and Life Sciences, 2026 marks the point when sustainability becomes essential, driven by circular innovation. 1. The Timeline: The Final Countdown to Compliance The move from a directive to a regulation is significant. It ends fragmented national laws and creates one strict standard across the European Union. 12 August 2026 is the official start date. From then on, any packaging sold in the EU must meet unifi ed sustainability, labelling, and technical documentation requirements. The Eradication of PFAS:  At the same time, a strict ban on "forever chemicals" (PFAS) in food-contact packaging will take effect. This is an important step for long-term public health and environmental protection. A Decade of Transformation:  This is just the beginning. By 2030, the "Design for Recycling" (DfR) standard will be required, and by 2035, all packaging must be recycled at a commercial scale. 2. Manufacturing: The Focus on Minimization Under the new regulation, manufacturers are now considered "Producers" and have full Extended Producer Responsibility (EPR) . The Mandate for Precision: Extra packaging is now a liability. Manufacturers must show that every bit of packaging is necessary for the product’s integrity. The days of using oversized boxes are ending. Documentation as an Asset:  Technical files and EU Declarations of Conformity  must be kept for up to ten years. In 2026, the data that comes with the package will be checked as carefully as the product itself. 3. Life Sciences: Balancing Clinical Effectiveness with Environmental Responsibility The pharmaceutical and medical device sectors work in a "hybrid" environment. While regulations recognize the importance of patient safety, a complete exemption is not realistic. Safeguarding Public Health:  Some see the recyclability exemptions for primary packaging, like blister packs and sterile barriers, as a "blessing." These rules make sure that sustainability efforts do not compromise clinical sterility or patient outcomes. The Logistical Obligation: However, secondary and tertiary packaging, such as cartons and pallets used in global supply chains, must meet strict minimization standards. The challenge for life sciences is to keep medical-grade protection while adopting more minimal logistics. 4. Strategic Imperatives for a Circular Future True resilience in 2026 will be defined by Circular Innovation. Organisations that succeed in navigating this transition will do so by adopting three core strategies: Digital Product Passports (DPP): The use of QR codes for digital traceability is no longer a luxury. It is a vital tool for providing disposal instructions and ensuring transparency across the value chain. Material Harmonisation: Transitioning from complex multi-layer laminates to mono-material solutions enables easier reclamation and reuse, aligning with the EU’s broader carbon-neutrality objectives. Sustainable Infrastructure: Echoing the "Sponge City" concept, manufacturing facilities are increasingly expected to manage their own environmental impact—such as on-site rainwater attenuation—as part of their broader ESG commitments under the CSRD. Conclusion: Leadership in the New Green Economy The implementation of the PPWR in August 2026 should not be seen as an obstacle to be circumvented but as a catalyst for excellence. It demands a sophisticated re-evaluation of how we protect, transport, and present the fruits of our industry. By preparing the necessary "innovation frameworks" today, your organisation can ensure that when the regulatory environment shifts in 2026, it not only survives the transition but also emerges as a leader in a cleaner, more transparent global market.     Reference : EU Packaging and Packaging Waste Regulation: New Compliance Requirements for E-Commerce | Insights | Greenberg Traurig LLP   https://www.taylorwessing.com/en/insights-and-events/insights/2025/06/what-the-eu-packaging-regulation-means-for-medical-devices   https://www.news-medical.net/whitepaper/20251217/Developments-in-EU-medtech-legislation.aspx   Packaging & Packaging Waste Regulation - European Commission

Industri sedang berubah dengan cepat. Kemasan, yang sebelumnya sering dianggap sebagai aspek pendukung, kini menjadi fokus utama. Mulai 12 Agustus 2026 , Regulasi Kemasan dan Limbah Kemasan Uni Eropa (Packaging and Packaging Waste Regulation / PPWR)  akan mengubah secara mendasar cara perusahaan di seluruh dunia menjalankan tanggung jawab lingkungannya. PPWR bukan sekadar seperangkat aturan baru. Bagi seluruh pelaku di sektor Manufaktur  dan Life Sciences , tahun 2026 menandai titik di mana keberlanjutan tidak lagi bersifat opsional, melainkan menjadi kebutuhan utama yang didorong oleh inovasi sirkular. 1. Garis Waktu: Hitung Mundur Menuju Kepatuhan Peralihan dari directive  menjadi regulation  merupakan perubahan yang sangat signifikan. Hal ini mengakhiri perbedaan penerapan hukum di tiap negara anggota dan menciptakan satu standar yang ketat dan seragam di seluruh Uni Eropa. 12 Agustus 2026  adalah tanggal resmi mulai berlakunya regulasi. Sejak saat itu, setiap kemasan yang dipasarkan di Uni Eropa harus memenuhi persyaratan terpadu terkait keberlanjutan, pelabelan, dan dokumentasi teknis. Penghapusan PFAS : Pada saat yang sama, larangan ketat terhadap “bahan kimia abadi” (PFAS) pada kemasan kontak pangan akan diberlakukan. Ini merupakan langkah penting untuk melindungi kesehatan publik dan lingkungan dalam jangka panjang. Satu Dekade Transformasi : Ini baru permulaan. Pada tahun 2030 , standar Design for Recycling  (DfR) akan menjadi kewajiban, dan pada tahun 2035 , seluruh kemasan harus dapat didaur ulang pada skala komersial. 2. Manufaktur: Fokus pada Minimalisasi Kemasan Dalam regulasi baru ini, produsen kini secara resmi dikategorikan sebagai “Produsen”  dan sepenuhnya bertanggung jawab di bawah skema Extended Producer Responsibility (EPR) . Kewajiban Presisi Kemasan berlebih kini menjadi risiko hukum. Produsen harus mampu membuktikan bahwa setiap elemen kemasan benar-benar diperlukan untuk menjaga integritas produk. Era penggunaan kotak dan lapisan berukuran berlebihan telah berakhir. Dokumentasi sebagai Aset Strategis Berkas teknis dan Deklarasi Kesesuaian Uni Eropa harus disimpan hingga sepuluh tahun. Pada tahun 2026, data yang menyertai kemasan akan diaudit dengan tingkat ketelitian yang setara dengan produknya sendiri. 3. Life Sciences: Menyeimbangkan Efektivitas Klinis dan Tanggung Jawab Lingkungan Sektor farmasi dan alat kesehatan beroperasi dalam lingkungan “hibrida”. Meskipun regulasi mengakui pentingnya keselamatan pasien, pengecualian secara menyeluruh tidak lagi realistis. Perlindungan Kesehatan Publik Pengecualian terhadap persyaratan daur ulang untuk kemasan primer—seperti blister dan penghalang steril—sering dianggap sebagai “kelegaan”. Aturan ini memastikan bahwa upaya keberlanjutan tidak mengorbankan sterilitas klinis maupun hasil pengobatan pasien. Kewajiban Logistik Namun demikian, kemasan sekunder dan tersier—seperti karton dan palet dalam rantai pasok global—harus memenuhi standar minimalisasi yang ketat. Tantangan utama sektor life sciences adalah mempertahankan perlindungan kelas medis sambil menerapkan logistik yang lebih ringkas dan efisien. 4. Imperatif Strategis Menuju Masa Depan Sirkular Ketangguhan sejati pada tahun 2026 akan ditentukan oleh Inovasi Sirkular . Organisasi yang berhasil melewati transisi ini umumnya mengadopsi tiga strategi utama berikut: Digital Product Passport (DPP) : Penggunaan kode QR untuk keterlacakan digital bukan lagi kemewahan, melainkan kebutuhan penting untuk menyediakan panduan pembuangan dan menjamin transparansi di seluruh rantai nilai. Harmonisasi Material : Transisi dari struktur laminasi multilapis yang kompleks menuju solusi mono-material memungkinkan proses daur ulang dan penggunaan kembali yang lebih mudah, sekaligus selaras dengan target netralitas karbon Uni Eropa. Infrastruktur Berkelanjutan : Sejalan dengan konsep Sponge City , fasilitas manufaktur semakin diharapkan untuk mengelola dampak lingkungannya sendiri—misalnya melalui pengelolaan air hujan di lokasi—sebagai bagian dari komitmen ESG yang lebih luas di bawah kerangka CSRD . Kesimpulan: Kepemimpinan dalam Ekonomi Hijau Baru Penerapan PPWR pada Agustus 2026 seharusnya tidak dipandang sebagai hambatan yang harus dihindari, melainkan sebagai langkah menuju keunggulan operasional . Regulasi ini menuntut evaluasi ulang yang mendalam terhadap cara kita melindungi, mengangkut, dan menyajikan produk industri. Dengan menyiapkan kerangka inovasi  yang tepat sejak hari ini, organisasi Anda dapat memastikan bahwa ketika lanskap regulasi berubah pada tahun 2026, perusahaan tidak hanya mampu bertahan, tetapi juga muncul sebagai pemimpin dalam pasar global yang lebih bersih, transparan, dan berkelanjutan.   Referensi : EU Packaging and Packaging Waste Regulation: New Compliance Requirements for E-Commerce | Insights | Greenberg Traurig LLP   https://www.taylorwessing.com/en/insights-and-events/insights/2025/06/what-the-eu-packaging-regulation-means-for-medical-devices   https://www.news-medical.net/whitepaper/20251217/Developments-in-EU-medtech-legislation.aspx   Packaging & Packaging Waste Regulation - European Commission

What is CBAM?   CBAM is a carbon border tax. It is designed to ensure that the EU’s climate policies do not cause "carbon leakage", where companies move production to countries with weaker environmental rules to save money, shifting rather than reducing global emissions. By placing a price on the carbon emitted during the production of certain goods imported into the EU, the mechanism ensures that foreign products face the same costs as those made within the bloc under the EU Emissions Trading System (ETS), which requires companies to pay for the right to emit carbon dioxide.  Which Sectors are Affected? To understand CBAM's impact, it is important to see which industries are subject to its requirements.   CBAM initially targets the most carbon-intensive industrial sectors:  Iron and Steel  Aluminium  Cement  Fertilisers  Electricity  Hydrogen  The EU plans to expand this list in the coming years to include processed products and possibly more sectors like chemicals and plastics. This potential expansion highlights the need to monitor regulatory developments.  Timeline of Implementation   Phase 1: The Definitive Period (2026 – 2034)   This is is the most important window for Non EU exporters. The system is now a live tax mechanism, not a pilot.  1 January 2026: Financial obligations commence. Importers must be registered as "Authorised CBAM Declarants" to bring covered goods into the EU.  31 August 2026: Deadline for the final "Transitional" quarterly report (covering Q4 2025).  1 February 2027: The first window opens for purchasing CBAM certificates to cover emissions from goods imported during 2026.  31 August 2027: The first Annual CBAM Declaration is due. Importers must surrender certificates equivalent to the total verified embedded emissions—the carbon released during manufacture—of their 2026 imports.  2026–2034: During this period, the EU will reduce free allowances to domestic industries each year. As these allowances drop, CBAM costs for importers will rise until all embedded carbon is taxed.  Phase 2: Scope Expansion (2026 – 2030)   By End of 2026: The Commission will complete a review to decide whether to include organic chemicals and polymers (plastics) in the scope.  By 2030: The goal is to include all sectors currently covered by the EU Emissions Trading System, which could bring paper, pulp, and glass into the mechanism.  A Global Domino Effect?   The EU is the first to implement such a scheme, but likely not the last. The UK government has already announced plans to introduce its own UK CBAM by 2027 to protect British industry from being undercut by high-emission imports.  Conclusion   CBAM represents a fundamental shift in international trade. 'Greenness' is now a financial liability, not just a social responsibility metric. Businesses must ensure data transparency and invest in low-carbon technology to access the market.

Sumatra is not only blessed with abundant natural resources but is also one of the regions most vulnerable to natural disasters. This presents a significant challenge for both local communities and businesses, given that the island is one of the world’s largest hubs for palm oil production. While the industry offers immense potential as an economic driver, environmental concerns persist, with industrial operations often blamed for land-use changes. Palm oil companies must take preventive and adaptive measures to mitigate the risks associated with their operations. Obtaining operational certifications is essential—not just to meet regulations, but to help mitigate disasters and secure long-term business sustainability. Certification as a Mitigation Solution The implementation of certification standards sets strict criteria to prevent environmental impacts from industrial operations. These standards include the mandatory ISPO (Indonesian Sustainable Palm Oil) and the voluntary RSPO (Roundtable on Sustainable Palm Oil). The following reasons why implementing certification standards is essential : Protect High Conservation Value (HCV) Areas: Companies must preserve natural water catchments and river buffers to protect these areas. Certification prohibits the clearing of new peatlands. It also mandates water table management. This helps prevent land subsidence, which can trigger permanent flooding. Operations must ensure that drainage systems do not discharge extreme water volumes. This prevents flooding in downstream residential areas. Flooding not only harms local communities: it also paralyses company operations. Certification helps businesses build resilience. Conclusion The recent floods in Sumatra serve as a reminder that nature has its limits. Palm oil certification acts as a bridge. It helps ensure that corporate operations stay in harmony with the environment’s carrying capacity. By adhering to sustainability standards, the palm oil industry protects both the ecosystem and its own economic future. In the face of these environmental adversities, Peterson Solutions Indonesia extends solidarity to the people of Sumatra and another areas that faced similar disasters. We firmly hope that integrated mitigation efforts will soon yield a more stable, resilient landscape for generations to come.

Background: Standardising Sustainability for the Downstream Industry As a follow-up to Presidential Regulation No. 16 of 2025 on the Indonesian Sustainable Palm Oil (ISPO) Certification System, the Ministry of Industry issued Minister of Industry Regulation No. 38 of 2025 to provide technical provisions for ISPO certification for the downstream palm oil industry. This regulation ensures that palm oil derivative products comply with national standards on legality, traceability, and sustainability across the downstream value chain. This regulation fills in the technical details not elaborated in the Presidential Regulation, including procedures for certification audits, documentation requirements, monitoring mechanisms, and the system of sanctions for industrial companies that fail to comply with ISPO requirements. Key Provisions on ISPO Certification for the Downstream Palm Oil Industry under Minister of Industry Regulation No. 38 of 2025 1. Certification Obligations for the Downstream Industry All companies engaged in the processing and manufacturing of palm oil derivatives  are required to hold a valid ISPO Certificate. This obligation applies to downstream activities producing refined palm oil products, oleochemicals, food and non-food palm-based products, including cooking oil, margarine, specialty fats, palm-based animal feed, and other derivative outputs. The scope of regulated business activities is determined based on the Indonesian Standard Industrial Classification (KBLI)  listed in the annexe to Minister of Industry Regulation No. 38 of 2025, which specifically covers downstream palm oil processing and manufacturing activities . 2. Certification Principles and Criteria The regulation applies the core ISPO principles to downstream industrial activities, covering: Legal compliance , including business licences, tax identification numbers (NPWP), and trademark legality. Supply chain traceability , through supplier verification, supply chain models, and traceability of raw material origins. Sustainable business improvement , relating to product quality, operational efficiency, and environmental management. Each principle is supported by indicators and parameters that are verified through audits. 3. ISPO Certification Process The certification process includes: verification of document completeness; Stage 1 and Stage 2 audits; assessment by the certification body; issuance of the certificate, including provisions on the use of the ISPO logo on products. Audit duration is determined based on the company’s production capacity. 4. Surveillance and Recertification Companies are required to undergo annual surveillance audits and recertification every five years. 5. Certificate Transfer Companies may transfer their certification from one ISPO Certification Body to another through an established transfer mechanism. 6. Administrative Sanctions Companies that fail to comply with the provisions may be subject to: written warnings; administrative fines; temporary suspension of business activities. 7. Guidance and Supervision The Ministry of Industry carries out guidance, facilitation, and supervision to ensure that certification implementation is conducted in accordance with regulatory requirements. Why This Regulation Matters 1. Alignment of Sustainability Standards For the first time, the downstream palm oil industry is explicitly subject to mandatory sustainability standards under the ISPO system. 2. Strengthening Product Traceability Supply chain requirements ensure that palm oil products can be traced back to the origin of their raw materials. 3. Supporting Global Market Competitiveness Global demand for sustainably produced palm oil continues to grow; ISPO certification serves as a tool to maintain credibility and market access. 4. More Systematic Oversight Annual surveillance and standardised audit requirements ensure consistent implementation of sustainability practices. Effective Date and Transition Period Minister of Industry Regulation No. 38 of 2025 sets out two key timelines: 1. Six-Month Transition Period Article 49 stipulates that the regulation enters into force six months after its promulgation. If promulgated on 3 November 2025, the regulation will become effective in May 2026. 2. Mandatory Certification from 19 March 2027 Article 48 stipulates that the downstream industry must hold an ISPO Certificate starting 19 March 2027. This provides companies with time to prepare traceability systems, documentation, and audit processes. Relationship with Presidential Regulation No. 16 of 2025 Minister of Industry Regulation No. 38 of 2025 serves as the technical implementing regulation of Presidential Regulation No. 16 of 2025, which constitutes the national legal framework for the ISPO system. The Presidential Regulation establishes: ISPO obligations for all actors across the palm oil value chain; ISPO principles and institutional structure; the audit and assessment framework; reporting and oversight obligations. Minister of Industry Regulation No. 38 of 2025 then details the technical implementation specifically for the downstream industry, ensuring that the mandate of the Presidential Regulation is operationalised through structured audit mechanisms, surveillance, and sanctions. Conclusion Minister of Industry Regulation No. 38 of 2025 is a key regulatory instrument in strengthening the governance of Indonesia’s downstream palm oil industry. With a six-month transition period and full certification obligations taking effect on 19 March 2027, industry players are given time to adjust internal systems, enhance traceability, and fulfil legal requirements. As a technical implementing regulation of Presidential Regulation No. 16 of 2025, this regulation provides a structured framework to ensure that ISPO sustainability standards can be applied consistently across the downstream value chain, reinforcing the credibility of Indonesian palm oil products in global markets.

A Comprehensive Revision Affecting All GGL Standards, Procedures, and Compliance Requirements Green Gold Label (GGL) has officially released a major update across its entire suite of documentation , marking one of the most extensive revisions in recent years. The update covers all key components of the GGL certification framework, including standards, procedures, audit guidelines, calculation tools, and supporting materials. All operators, certificate holders, and auditing bodies are required to refer to and adopt the latest versions published on the GGL Documentation Portal. What Has Been Updated? The recent release introduces significant revisions to multiple document categories: GGL Standards (including GGL for sustainable biomass) Chain of Custody requirements GGL-GHG (Greenhouse Gas) calculation and reporting tools Audit procedures and compliance checklists Templates, forms, and operational guidance These updates replace previous versions, which are no longer valid for compliance or audit preparation. GGL strongly encourages all certified entities and applicants to familiarise themselves with the changes to ensure uninterrupted compliance. Who Will Be Affected? The major update impacts stakeholders across the biomass and renewable energy supply chain, including: Producers and manufacturers Collectors and aggregators Traders and distributors Energy and power companies Certification and assurance bodies Any organisation operating under the GGL scheme must ensure that internal systems, SOPs, and documentation align with the newly issued requirements. Key Implications for Certificate Holders Mandatory transition to revised GGL documentation Adjustments to internal control systems Updates to greenhouse gas emission calculations Revisions to risk assessment and due diligence processes Potential changes in evidence requirements for audits Need for renewed compliance verification before surveillance or recertification audits Early preparation is recommended to avoid compliance gaps and delays during audit cycles. Transition Timeline for the Updated GGL Documentation The revised documentation was officially published on 7 November 2025 , followed by the transition schedule below: Adoption Date — 1 January 2026 The new documentation applies only for the GGL Scope with FIT/FIP-Module beginning 1 January 2026 . Effective Date — 2 March 2026 Starting 2 March 2026 , the previous version becomes ineffective  for the GGL Scope with FIT/FIP-Module. All audits and certification decisions must be based on the updated documentation. Transition Deadline — 31 December 2026 Certification decisions based on the previous version lose validity after 31 December 2026 . Organisations must ensure full transition before this deadline to avoid certification disruption. How Peterson Solutions Indonesia Can Support Your Transition With the release of the updated GGL documentation, organisations may face challenges in interpreting the new requirements or adjusting existing procedures. Peterson Solutions Indonesia  is ready to provide comprehensive support, including: Gap Assessment Against Updated GGL Requirements Evaluating current practices to identify compliance gaps and required improvements. SOP & Documentation Revision Updating internal procedures, control measures, and record-keeping systems according to the latest GGL guidance. GGL-GHG Calculation Support Assisting in recalculating emissions using the latest GGL-GHG methodology and required data inputs. Pre-Audit Readiness Checks Preparing your organisation for surveillance or recertification audits under the updated framework. Training & Capacity Building Delivering tailored training sessions on GGL standards, Chain of Custody, risk assessment, and GHG tools. Our expert team ensures your organisation transitions smoothly to the updated system while maintaining full alignment with GGL requirements.