Product compliance is a consideration for every business. Increasingly product compliance and sustainability have emerged as critical drivers of corporate success and resilience. Aligning product portfolios with regulatory standards and sustainability goals is no longer a compliance exercise but a strategic imperative. Companies which proactively integrate sustainable practices into their product development not only mitigate risks and avoid costly penalties but also unlock new market opportunities and foster consumer trust.
In this article we look into the complexities of product compliance and sustainability, offering actionable insights for companies considering how to adapt to regulations such as the EU’s Ecodesign for Sustainable Product Regulation.
Regulatory Landscape
Before exploring how companies should adapt to new regulations, it is essential to clarify what is being regulated. Broadly, EU regulations focus on several key themes that reflect global regulatory trends.
Firstly, product durability is emphasised, aiming to extend product lifespans, thereby reducing waste, enhancing consumer value, and improving reliability. Waste reduction, particularly in product packaging, is another major focus, addressing the volume and recyclability of packaging materials. The circularity of products is also crucial, promoting the use of recycled materials and enhancing recyclability to minimise waste and use of virgin materials.
Regulations also target the use of harmful substances, particularly chemicals, to prevent negative environmental impacts. Additionally, improving energy efficiency is a key consideration, aiming to reduce products’ lifetime energy footprints, lower emissions, and increase consumer value by mitigating energy price fluctuations.
Lastly, regulations mandate clear product information, eliminating misleading or vague claims. There is also the introduction of the Digital Product Passport, which ensures consistent and comprehensive consumer insights.
Designing for sustainability
With such a complex matrix of regulations, how can companies ensure they are developing new products which are compliant?
From our work with clients, we’ve identified three key activities which help to build a robust approach to embedding regulatory requirements into the business.
Identify
The first step in achieving compliance is identifying the regulations that impact your products and determining the applicable markets. While this may seem straightforward, it is often a complex and challenging task.
Conducting a horizon scan of regulations is essential to gain a comprehensive understanding of current and upcoming regulations. This process results in a master list of all relevant regulations, which can be continuously updated as the regulatory landscape evolves.
Understanding the bigger picture enables a coordinated response to multiple, overlapping compliance challenges and avoids duplicating efforts across the business. For example, an investment in a life cycle assessment capability should include the requirements for Digital Product Passport and substantiating green claims.
Regulation should not be viewed in isolation. Business requirements are often spread across multiple regulations, which implement different instruments. For example, the Green Claims Directive supports the objectives of the circular economy strategy which includes Eco-design for Sustainable Products (ESPR) and Empowering Consumers for the Green Transition (ECGT). Whilst the ESPR introduces specific information requirements to facilitate consumers being able to make informed purchasing decisions, the Green Claims Directive introduces verification requirements to further strengthen the accuracy of information given to consumers.
Despite the principal of harmonisation in regulations, there is still a degree of flexibility in the implementations of directives across Member States, creating a mosaic of requirements. For example, EPR schemes and packaging labelling requirements, underpinned by the Packaging and Packaging Waste Regulation, subtly differ across markets. Identifying and then interpreting regulations is an ongoing task for every business and will always be.
Understand
Design
With the full list of regulations identified and their intentions interpreted, companies must now embed this information into their product design processes.
This task can range from being highly sophisticated to eliminate risks, to being simplified to accelerate progress. Each company needs to determine the best strategy for their specific context.
At the simplified end of the spectrum, developing a list of key considerations for product development teams may suffice. This approach works well for companies with few product lines or relatively simple products, or those that are vertically integrated and have greater control over product development aspects.
For some businesses, establishing clear and accessible information about regulatory boundaries may be enough to meet compliance requirements. However, for most, this will not suffice, and more formal internal controls will be necessary.
At the sophisticated end, companies can automate regulatory control boundaries within design workbench tools. As designers make decisions about products, materials, packaging, and intended use, these tools can enforce hard boundaries that designers cannot cross.
For most companies, the optimal approach will lie somewhere in between, combining education and process elements.
Focusing on education to inform and influence designers to make ESG-friendly choices can seed changes in established product development thinking. Increasing understanding of design choices and their consequences can significantly alter behaviour, serving as a relatively low-cost but effective first step.
Policy and process changes embed hard requirements into design and development approaches. Initially, this will likely target areas presenting the greatest compliance risk, but over time, it can expand to promote broader sustainable product development benefits.
Product designers are accustomed to working within constraints. This daily practice can be leveraged to help accelerate the adoption of additional compliance requirements.
How Can Jordisk help?
Attempting to navigate the complex landscape of product compliance and sustainability is a huge challenge. We help clients to established a harmonised approach to ESG regulatory compliance. This helps to companies to eliminate duplication of effort, increases clarity across the business and accelerates progress towards compliance.
Our Horizon Scanning service is a perfect place to start for companies looking to understand the full landscape of compliance requirements. Our Compliance Programs then help clients to implement the requirements into their operating model, reducing compliance risks and improving the sustainability of their products.
Contact one of our team today to discuss how we can help you to meet your product compliance and sustainability requirements.
