Insight

When it comes to compliance with the Carbon Border Adjustment Mechanism (CBAM) regulation, Kobout B.V believes transparency is paramount in order to provide accurate reporting, which is why the Dutch fastener supplier has made several investments in emissions tracking software, data analytics, as well as training for its staff. 

These investments enable Kobout to ensure full compliance with CBAM and provide its customers with the necessary data – as and when it is needed – with the company actively exploring options to automate the CBAM reporting process further, as well as ways to make its operations more sustainable. 

Additionally, offering training for staff, focused specifically on CBAM, helps to ensure the entire team understands how best to meet the regulation requirements. Joost Kunst, director at Kobout, underlines: “To ensure complete compliance with CBAM, transparency and communication from the very beginning was necessary – both internally and externally.” 

He adds: “Immediately after CBAM was announced, we were engaged in discussions with our suppliers. The urgency was clear and processes had to be initiated quickly – but reliably – through transparent reporting systems and audits, as well as regular communication and cooperation to ensure we obtain correct, reliable data.”

“Transparency is also needed at the other end of the supply chain,” continues Joost. “Our initial calculations indicate a significant increase in our costs and we will be compelled to pass these costs onto our customers. To ensure transparency, it’s important that suppliers are communicating this to customers – so they have an understanding of what is going on in the wider market.”

Joost highlights: “CBAM will undoubtedly lead to a shift in procurement strategies, with companies likely to prefer suppliers within the EU or from countries with lower carbon emissions. However, that brings with it the issue of production capacity
within Europe, which is far from sufficient to meet demand should the market shift. We have always prioritised sustainable and
reliable partners and will continue to explore more EU-based suppliers to reduce our carbon footprint but also minimise supply chain risks.”

Ultimately CBAM, whilst challenging, is here to stay and Kobout is determined to provide a transparent and compliant approach to the regulation, adapting to these changes and continuing to support its customers to achieve sustainability goals.