The compliance divide: How AI can close the gap between policy and producers

Understanding complex environment and sustainability rules can mean the difference between being locked out of markets and being part of the climate transition. In this guest blog, Niki Lewis, Chief Sustainability Officer at Bext360, shows how their new AI tool can turn dense regulations into simple, mobile-first tasks, giving smallholders and cooperatives the opportunity to stay connected to global markets, while giving brands and regulators the credible data they need.

Share this:

• New windowShare on Linkedin
• New windowShare on X
• New windowShare on Facebook
• New windowShare on Email

When policymakers in Brussels draft new sustainability rules, the intention is clear: hold companies accountable for their environmental and social impact. The EU Deforestation Regulation (EUDR) and the Corporate Sustainability Reporting Directive (CSRD) are the latest examples of Europe's leadership in climate policy. But for millions of smallholder farmers across Latin America, Africa and Asia, these laws can feel less like progress and more like a barrier.

The uncomfortable truth is that well-meaning regulations risk shutting producers out of global markets unless we close the compliance divide.

The producer's perspective

For a brand in Europe, compliance is an obligation. For a producer in Ethiopia, Honduras or Madagascar, compliance is a passport to the global economy. Without it, their products can't be sold.

But most producers don't have compliance officers or legal teams. They don't have the resources to interpret hundreds of pages of EU law. They don't have GIS experts to map their farms or auditors to document every labor contract. What they have are mobile phones, a patchy internet connection and an urgent need to keep exporting the crops their livelihoods depend on.

Bridging the divide with AI

This is where technology can make the difference between inclusion and exclusion. At Bext360, we've developed an AI compliance tool, Ethica, that takes the dense text of regulations like the EUDR and turns it into actionable tasks for producers.

Instead of asking a farmer to 'prove deforestation-free origin,' the system prompts them to upload a GPS polygon of their plot. Instead of requiring a lengthy social report, the platform asks a cooperative to log basic labour data through a mobile form. Each entry is time-stamped, geolocated and stored immutably on blockchain.

For the farmer, the task takes minutes. For the brand, it creates a verifiable compliance record. For regulators, it delivers the credible data they need.

Shared responsibility, shared opportunity

The reality is that compliance should not be the sole responsibility of producers. Yet without tools that make data collection simple, the burden inevitably falls on them. That inequity is both unfair and unsustainable.

By using AI to automate compliance workflows, we can share responsibility more equitably across the supply chain. Brands gain confidence, regulators get enforcement and most importantly producers are not excluded from markets by barriers they cannot overcome.

We also recognise that AI and blockchain have environmental costs. At Bext360, we minimise this by using lightweight AI models and efficient infrastructure, and by building our system on the Stellar blockchain. Unlike energy-intensive proof-of-work chains, Stellar's consensus protocol is extremely low-energy, making it a far more sustainable way to ensure data integrity and traceability.

The human side of compliance

We've seen this firsthand in our work with coffee cooperatives. A farmer in Honduras doesn't want to navigate legal jargon, they want to know that the data they enter in an app will keep their coffee exportable. A roaster in Denver doesn't want abstract assurances, they want to see proof of origin, pricing, and sustainability practices they can share with customers.

Compliance is not abstract. It is deeply human. It is about livelihoods, trust and the ability to participate in global trade on fair terms.

Closing the divide

If sustainability legislation is to succeed, it must bridge the gap between policy and practice. AI-driven compliance platforms are one of the few ways to achieve that at scale. They allow us to honour the spirit of regulation, climate action and social responsibility without leaving behind the very people who grow our food and fibre.

Global North regulations will only be effective if they empower Global South producers, not exclude them. By closing the compliance divide, we can ensure that the transition to sustainable trade is both just and inclusive.

2025 is a critical year for the Paris Agreement. Ten years on, we need to rethink how we frame the challenge. And seeing challenges differently is what business and we are all about.

ICC is committed to securing what businesses need at the upcoming climate negotiations, COP30, in Belém, Brazil. Learn more about our Opportunity of a Lifetime climate campaign and how to get involved.

*Disclaimer: The content of this article may not reflect the official views of the International Chamber of Commerce. The opinions expressed are solely those of the authors and other contributors.