STiR coffee and tea magazine

STiR coffee and tea 31 The majority of Europe's tea is shipped through the port of Hamburg, where it is often stored and blended before being sent to other markets, such as the US and Russia. Photo credit: Wolfgang Weiser From left to right: Wollenhaupt's Fabian Fister, Maike Ladehoff, and Karsten Wiese. Photo credit: Wollenhaupt GmbH A Shifting Legal Landscape Germany's newly formed government has indicated that it may revise or even phase out the LkSG. This development, however, is still politically nascent, with no definitive roadmap or timelines. "With the current coalition agreement suggest- ing a potential rollback of the LkSG, the focus naturally shifts toward EU-level legislation," Ladehoff commented. "But we're moving ahead regardless because the market demands it." And indeed, even if the LkSG were to be repealed or softened, the broader legal ecosystem re- mains unforgiving. Enter the CSDDD, the EU's Pan-European Vision The European Union's CSDDD (see Europe's ESG Regulations Face Turbulent Times, STiR Summer 2025, p40) adopted in 2024, mandates companies to prevent adverse human rights and environmental impacts across their value chains. Unlike the LkSG, which is a national law, the CSDDD is designed to operate across all EU member states, creating a unified framework for corporate accountability. While the thresholds and enforce- ment mechanisms may vary, the core requirements mirror those of the LkSG: implement due diligence policies, assess supplier risks, engage in preventative and corrective actions, and report transpar- ently. Notably, the CSDDD applies to large companies across the EU, meaning that firms like Wollenhaupt — regardless of size — will increasingly need to prove compliance simply to continue serving clients who do fall under the directive. "In our perception, larger companies have already started the compliance pro- cess and appear to be well on their way," observed Ladehoff. "As part of the sup- ply chain, our customers are now inquir- ing about our status and future plans." Double Burden: Legal Compliance and Market Pressures The dual expectation — regulatory com- pliance and customer-driven sustain- ability — places German tea firms such as Wollenhaupt in a constant balancing act. This is particularly difficult given the structure of tea supply chains, which are vast, multi-tiered, and often deeply opaque. "Our rose hips, for instance, come from wild collectors who sell to co- operatives. They, in turn, sell to exporters who then sell to us," said Wiese. "That means hundreds of people may be involved whom we don't see or know." This invisibility makes compliance extraordinarily challenging, especially for re- quirements related to child labor, fair wages, and environmental protection in the countries of origin. "The first link in the chain, growers and farm workers, is far up- stream," pointed out Wiese. "Reaching them is indispensable but also our greatest challenge," he admitted. To tackle these hurdles, Wollenhaupt relies heavily on long-term relationships built on mutual trust and transparency. But even then, verifying compliance often hinges on indirect metrics or third-party certifications that may not fully capture ground realities.

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