Sustainability in manufacturing: How pulp and paper companies can shine
Pulp and paper companies have an opportunity to lead the way for sustainability in manufacturing by focusing on five key areas.
In the age of information and conscious consumerism, businesses are finding themselves at a crossroads where profitability meets responsibility.
Until now, sustainable business practices have been largely optional, driven by consumer demand. Thirty-five percent of consumers of all ages view sustainability as an important factor in their product purchases. And with 73% of Gen Z consumers willing to pay more for environmentally-friendly products, there’s been no shortage of demand.
But due to legislation and the new digital product passport requirement passed as part of the European Green Deal (EGD) last year, transparency about product sustainability will be mandatory starting in 2026.
What is a digital product passport (DPP)?
A Digital Product Passport (DPP) is a tool to gather and share product and supply chain data, allowing businesses and consumers to clearly understand a product’s environmental and sustainability impact across all value chains.
The objective behind the DPP is to enable sharing of key product information for sustainability and circularity among economic actors, accelerate the transition to a circular economy, and facilitate compliance verification for authorities.
In March 2022, as part of an effort to establish sustainable products as the standard in Europe, the European Commission introduced the digital product passport. DPPs collect data on individual items and their supply chains, including:
- Origin
- Materials
- Unique identifiers
- Recyclability information
- Repair details
In addition to these specifics, digital product passports also will include fundamental information such as product name, model, manufacturing date, and warranty details.
This information is shared with stakeholders throughout the entire value chain, ranging from suppliers to manufacturers to end consumers.
DPPs are intended to improve transparency regarding the environmental impact of materials and products.
EU sustainability rule has global reach
The introduction of digital product passports aims to revolutionize information flows, fostering a greater understanding of the environmental implications associated with products from one end of the value chain to the other. But don’t assume that the scope of this EU initiative is limited to Europe. Its reach is set to transcend geographical boundaries.
As the regulation stipulates that all products placed on the EU market must comply, value chains across the globe will be affected.
So even if you’re a manufacturer headquartered in the United States and producing goods in Asia, you’ll still be required to comply with DPP if you’re selling in European countries.
Textiles, plastics among the first industries targeted
While the scope of digital product passport requirements expands across multiple industries, certain sectors are expected to comply first and pave the way for the rest. They include:
- Textiles: Notorious for its complex and often opaque supply chains, the fashion and textile industry faces increasing scrutiny regarding sustainability and ethical practices. DPPs will revolutionize the industry by requiring transparency on material origins, production processes, and sustainability capabilities, empowering customers to make conscious choices.
- Plastics: The plastics industry, grappling with environmental concerns such as ocean pollution and depleting non-renewable resources, faces a paradigm shift with DPP. By disclosing information about the recyclability, composition, and proper disposal of plastic products, this legislation with drive the transition towards a circular economy and the reduction of plastic waste.
- Electronics: Electronics play a vital role in our lives, but pose challenges in terms of resource depletion, hazardous materials, and electronic waste. DPPs will reveal the environmental impact of electronics, promoting responsible design, recycling initiatives, and resource efficiency throughout the product lifecycle.
- Automotive: As the world moves towards sustainable transportation, DPPs will support the development of greener vehicles by providing information on vehicle manufacturing, emissions, and end-of-life options, for a more sustainable mobility ecosystem.
- Chemicals: Though chemicals have wide-ranging applications across industries, their environmental and health risks must be managed responsibility. DPP will require comprehensive data on chemicals used in products, encouraging safer alternatives and improved handling practices.
- Construction: Known for resource consumption and waste generation, the construction sector will be required to share information on building materials and energy efficiency in order to encourage sustainable construction practices and creation of greener buildings.
- Batteries: With a growing focus on renewable energy and electric mobility, DPPs will facilitate transparency regarding the composition, environmental impact, and end-of-life management of batteries, promoting responsible production and consumption.
As part of the European Circular Economy Action Plan, targeted DPP requirements will continue to be introduced for specific sectors like agriculture, food, and packaging.
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Prepping for digital product passports
Organizations must proactively prepare for DPP requirements by establishing a central repository for their product information. This becomes the foundation for transparency and traceability by enabling businesses to gather essential data about their products’ environmental impact, composition, and lifecycle.
With a centralized and scalable repository, organizations can demonstrate regulatory compliance, promote sustainability throughout the value chain, and identify areas for improvement.
Modern technologies support an product experience strategy so that product information is effectively communicated to stakeholders across all channels, including websites, e-commerce platforms, mobile apps, social media, and offline touchpoints.
Digital product passports are just the beginning of growing requirements and legal initiatives aimed at promoting sustainability. By adopting a scalable approach to product information management, organizations can swiftly adapt to new regulations or market expectations, ensuring continued compliance and positioning themselves as leaders in sustainability.
