This article builds upon the discussions that were held at the UNFSS Academic Advisory Council meeting 2025, 31st March and 1st of April 2025, at the German Institute of Development and Sustainability (IDOS) .
The global sustainability governance landscape is rapidly transforming. A new global order is emerging, more fragmented in nature and shaped by regulatory approaches. New due diligence now requires businesses to ensure their supply chains do not harm people or the planet. These laws require companies to identify risks, prevent deforestation or labor exploitation, and demonstrate compliance through audits and reporting.
Voluntary Sustainability Standards (VSS), meanwhile, arose from some three decades ago as voluntary, market-based instrument to address sustainability change in an era which was characterized by the rise of global value chains (GVCs) and high levels of economic cooperation, despite political differences.
The 5th annual meeting of the UNFSS Academic Advisory Council (AAC) was held at the German Institute of Development and Sustainability (IDOS) in Bonn on March 31st and April 1st, 2025. The Council’s meeting focused on the changing landscape of sustainability governance and what are the implications for the future of VSS. The meeting was co-organized by the German Institute of Development and Sustainability (IDOS), the Leuven Centre for Global Governance Studies (KU Leuven), and the UNFSS.
Key topics included: the role of VSS in a new international political context, policymaking and research. The meeting also addressed major research gaps in the field of VSS and what research is needed to address them. They outlined research priorities to better understand and support VSS.
The UNFSS AAC brought together an international mix of academics (members of the AAC), practitioners (members from the UNFSS National Platforms) and policy experts from various disciplines. For the first time, VSS representatives were also invited to share their organizations’ perspectives and to exchange ideas directly with AAC’s members.
Findings from the meeting:
1. Today’s geopolitical dynamics have a strong impact on VSS. Geoeconomic fragmentation following subsidies, tariffs, and sustainability requirements, for instance, were some of the highlighted factors. However, this new regulatory environment presents challenges and opportunities, stressing the need for specialization and adaptation from VSS.
2. The heterogeneity among VSS results in different levels of impact in the field. As a result, the role of intermediaries (e.g. traders, exporters, intermediary and informal salespeople) was extensively discussed. These actors influence the implementation and the adoption of sustainable farming practices and shape multi-stakeholder sustainable commodity governance.
3. VSS representatives shared how new sustainability legislation is already driving change withing their organizations. They highlighted actions such as adapting operations, restructuring and shifting business practices. This shows that VSS are evolving, although arguably not following one clear direction.
“We see two (opposite) trends: last year we saw a trend towards more regulation (e.g., due diligence regulations) putting a lot of difficulties for developing countries. This year, we are witnessing a trend towards more deregulation in certain countries. The question is, what does this imply for VSS?” – remarks from a panel moderator
The meeting concluded with several key insights:
- First, VSS are adapting and reacting to mandatory regulatory measures, not necessarily following one single strategy.
- Second, tailoring VSS to local needs and conditions can improve their effectiveness and acceptance.
- Third, encouraging collaboration between different VSS and regulatory bodies to harmonize standards and reduce fragmentation is crucial and so is investing in capacity building for smallholders and producers to meet new regulatory requirements and VSS standards.
- Finally, long-term impact studies are necessary to better understand the effectiveness of VSS over time, raising questions on research funding and, again, on data.
“Rather than seeing VSS and Mandatory Due Diligence Regulations (MDDRs) as opposing governance approaches, they should be viewed as complementary: the way forward is to create synergies between both approaches” – AAC Member’s remarks during a presentation
By understanding and addressing the present challenges, all involved stakeholders, including policy makers, can help shape a trade system that balances sustainability goals with inclusive economic and social growth. Many of these recommendations are aligned with the UN VSS report titled “The future of sustainable trade: Due diligence initiatives, voluntary sustainability standards and developing countries”, released in December 2024.
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Find out more about the UNFSS Academic Advisory Council: Academic Advisory Council – UNFSS
