To ensure Chinese investments in Spain respect EU standards, regulators should move beyond self-reporting. Relying on company-provided documents is insufficient for tracking complex, multi-tiered supply chains. Instead, Spanish authorities can mandate third-party audits conducted by accredited European firms. These auditors must use standardized frameworks, such as the Corporate Sustainability Reporting Directive (CSRD), to verify environmental and social metrics.
Real-time digital monitoring offers a more robust defense. Implementing blockchain-based tracking for raw materials allows investigators to verify the origin of goods, ensuring no forced labor or illegal deforestation enters the local value chain. This creates a permanent, unalterable record of every transaction. Such technology makes it much harder for entities to hide non-compliance within layers of subcontractors.
Furthermore, the state should require periodic, unannounced site inspections. These physical checks complement digital data by providing a ground-level view of labor conditions and local ecological impact. By combining these technological tools with rigorous legal penalties for non-compliance, Spain can align foreign capital with the European Green Deal. This multi-layered approach turns abstract ESG goals into enforceable, practical requirements for all investors operating within the Iberian Peninsula.
