To thrive in the face of evolving regulations, companies must develop robust strategies across three critical areas. As many businesses are now required to deliver extensive information to comply with new legislation, it’s crucial to address these areas proactively.
The concept of circularity is gaining prominence, especially with upcoming regulations like the DPP (Due Diligence Directive). Companies need to create and implement a circularity strategy that integrates sustainable practices into their design and product development processes.
This involves identifying initiatives that align with circular design principles and ensuring that design and product teams are equipped to think circularly. The goal is to incorporate circularity into every stage of product development, enhancing sustainability and compliance.
Transparency is a major focus in current and future regulations. The shift towards greater transparency represents a significant change from traditional practices. Companies must now provide detailed information about their supply chains, not just at the first tier but potentially further back, to ensure the authenticity of their materials and to avoid greenwashing.
Developing a comprehensive understanding of your supply chain and being able to trace the origin of your goods is essential for meeting reporting requirements and delivering accurate information to key accounts.
Managing and reducing the environmental impact is a complex but critical area. Companies need to establish strategies that include environmental impact assessments and potentially Life Cycle Assessments (LCAs).
These assessments help quantify the environmental footprint of products and identify areas for improvement. Setting clear goals for minimizing environmental impact and integrating these into your company's operations will be key to complying with regulations and achieving sustainability targets.
In summary, companies must address these three areas—circularity, transparency, and environmental impact—to navigate the regulatory landscape effectively and ensure long-term survival in an increasingly sustainability-focused market.