Navigating De Minimis & ESG in 2024: Join the Conversation!

Introduction

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Hello, fellow supply chain professionals! It’s Sarah Barnes Humphrey, the founder and host of the "Let's Talk Supply Chain" podcast, and the creator of the Blended Pledge. After facing challenges due to illness last week, I'm thrilled to be back with you for another engaging conversation.

Today, I’m excited to introduce Maria Prince, who’ll be diving deep into two significant topics: De Minimis regulations and Environmental, Social, and Governance (ESG) frameworks. These topics are particularly impactful for small businesses, and we’ll unravel the interplay between supply chain dynamics and these important issues.

Before we jump into our discussion, are you eager to connect with a vibrant supply chain community? Join the Secret Society of Supply Chain! We’re focusing on the revamping of our women's supply chain membership and enhancing our education programs. Don’t miss out on the valuable information coming your way in early 2025. Sign up for our newsletter at secretsofsupplychain.com.

Today's Agenda

Latest Episode Highlights: We have a fresh episode featuring Parabola, which discusses moving away from Excel spreadsheets to streamline operations. Episode 435 reveals fascinating insights from their founder’s journey.
Upcoming Events: Mark your calendars! We have several exciting webinars and live shows lined up, including discussions on “Value-Added Logistics” and “Cold Chain Insights”.
Women in Supply Chain Forum Recap: Recently, I attended this inspiring forum focused on recognizing women’s contributions to the industry.

Guest Introduction

Let’s bring in Maria! Welcome, Maria!

Maria Prince: Thank you, Sarah! I'm delighted to be here. I currently serve as the Global ESG and Supply Chain Risk Leader for DuPont. My role involves integrating sustainability and supplier diversity into global procurement strategies and mitigating risks to ensure a smooth supply chain.

Poll of the Week

This week’s poll asked how supply chains should adapt to flood disruptions in Europe. Results showed that 56% of participants favored diversifying sourcing, while a smaller percentage supported strengthening local networks and investing in infrastructure.

Market Update

Now, let’s discuss what’s currently affecting our industry.

Maria emphasized that rising tariffs are a significant concern. Companies are under constant pressure to keep costs down while navigating these tariffs. It’s essential for businesses to have robust risk mitigation strategies, which should include diversifying sourcing options.

Article Discussion: De Minimis Regulations

Our first article discussed De Minimis, which refers to shipments valued under $ 800 that are exempt from duties and taxes when entering the U.S. However, there’s a push to raise these duties, potentially impacting small businesses significantly. Larger retailers may find ways to adapt more easily, while smaller enterprises face greater challenges.

Insights on De Minimis

Maria shared that the increase in duties could hinder small businesses, calling for a balanced approach to regulations. Small businesses could be provided with guidance and support to navigate these changes effectively.

Article Discussion: Moving Beyond ESG

Next, we explored an article on moving beyond ESG. While the conversation around ESG has lost some momentum, the importance remains. The focus should shift from acronyms to actions that promote clean water, fair wages, and human rights.

Maria highlighted a roadmap to navigate the confounding landscape of ESG compliance, pointing out the significance of materiality—which refers to the relevance of certain ESG factors to business strategy. Clear metrics are vital for measuring ESG efforts and communicating them effectively to stakeholders.

Final Notes and Actions

For those looking to get started with ESG initiatives, prioritize your company’s core values and align them with your customers’ expectations. Resources and training programs related to ESG metrics can greatly enhance your understanding and implementation of these frameworks.

Conclusion

I want to thank Maria for joining me today. Remember to check back next week for a unique guest who has an incredible story relating to supply chain management.

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Keyword

De Minimis, ESG, supply chain, sustainability, tariffs, small businesses, risk management, materiality, diverse sourcing, environmental governance, compliance.

FAQ

1. What is De Minimis in the context of shipping?
De Minimis refers to shipments valued at less than $ 800 that are exempt from duties and taxes upon entering the U.S.

2. How can the proposed increase in De Minimis duties impact small businesses?
Raising duties could create additional financial and administrative burdens for small businesses, making it harder for them to compete with larger retailers.

3. What does ESG stand for, and why is it significant?
ESG stands for Environmental, Social, and Governance. It represents criteria for a company's operations and impacts stakeholder decision-making.

4. What is materiality in relation to ESG?
Materiality addresses the relevance of specific ESG factors in relation to a company's business strategy, indicating which factors are most significant to report on.

5. How can I get started with ESG initiatives in my organization?
Begin by aligning your company’s core values with customer expectations, leveraging ESG resources and training programs, and developing clear metrics for measurement and reporting.