New sustainability regulations requires more transparency and traceability in value chains
STAFFAN OLSSON
Head of Public Affairs
This week, the European Parliament approved a wide range of new sustainability regulation at the final meeting of the current Members of the European Parliament (MEPs).
More than a dozen proposals were pushed through, including the Ecodesign for Sustainable Products Regulation (ESPR), the Packaging Directive (PPWR) and the Corporate Sustainability Due Diligence Directive (CSDDD). I choose to highlight these three examples because they will affect many product areas and companies linked to open value chains.
GS1 has an important role to play right now in creating the right conditions for businesses. GS1 standards can practically enable regulatory compliance, be used in many different industries and at the same time contribute to increased efficiency and profitability of the business, which is the original purpose.
Requirements for increased data transparency and traceability
A majority of the new sustainability legislation requires increased transparency and traceability throughout the value chain. And that buyers, sellers, regulators and all parties in a value chain communicate in the same way – with a common global business language. This means that many businesses now need to start using standards, digitizing and getting better control and quality of their data.
GS1 as a global organization and GS1 Sweden at a national level have taken an active role as experienced enablers of traceable value chains.
GS1 as an enabler of traceable value chains
At GS1, we are currently working to create the right conditions for companies that need to increase their use of standards. This is in order to create and demonstrate the traceability demanded by legislators and authorities, but also from trade associations, professional buyers and consumers.
GS1 Sweden works primarily to help companies streamline their operations, but the same standards-based solutions can also enable regulatory compliance.
By being proactive, companies can seize the opportunity to also increase their competitiveness and profitability linked to new sustainability requirements.
Most important for businesses right now
- Familiarize yourself with the new sustainability regulations and what it means for your business. Involve your Trade Association.
- Participate in standardization work to actively influence standards in user groups at GS1 and other standardization organizations such as the Swedish Institute for Standards (SIS).
- Start digitizing your business processes and data management. First internally and then with suppliers and customers. Stay focused on creating data quality.
- Test and develop. Start with digital traceability in a small scale. Build prototypes, collaborate on innovation projects etc. to test, build knowledge and then scale up.
Traceable value chains – enablers for the green transition
Do you have questions about GS1 standards for traceability or how to achieve better data quality? My colleagues and I are here to help our customers on the standardization journey, feel free to contact us.
Finally, I would like to take this opportunity to invite you to our webinar on May 16 on the theme Traceable value chains – enablers for the green transition.
Here we will present a recent survey on how ready Swedish companies are and what it actually takes to meet the legal requirements in a way that is also efficient and profitable for the business. Hope you can join us!
Selection of the list of approved EU regulations
The Ecodesign Regulation (ESPR)is a set of new sustainability requirements for products in almost all product areas. It also requires each product to have a digital product passport (DPP) showing sustainability data throughout the product’s life cycle. The Corporate Sustainability Due Diligence Directive (CSDDD), sets requirements for corporate responsibility. Businesses need to comply with the Paris Agreement and ensure they take responsibility for human rights and environmental protection throughout their supply chains. This also applies, for example, to suppliers’ suppliers, and not just to the next steps in the value chain. The Packaging Packaging Waste Directive (PPWR) requires a reduction in packaging and an increase in the amount of recycled plastic in plastic packaging. Traceability helps to verify origin, content and environmental impact, which is critical to meet increased sustainability reporting and certification requirements. There is also a requirement to make information about the packaging material available, for example via a QR code on the packaging.