Matthew Ekholm, Digital Product Passport and Circularity Specialist at Protokol looks at how businesses should use the EU legislation as a proof point to appeal to a growing sustainable consumer and effectively eliminate accusations of greenwashing
Issues surrounding sustainability continue to heighten in the modern world, with businesses knowing too well the demand on them to become more eco-conscious enterprises. In fact, as 70% of consumers admit they are now willing to pay more for products from sustainable brands, it is more important than ever that businesses turn on their green agenda.
Moreover, as more reusable and refillable products enter the market to support a more sustainable future, it can be seen that many SMEs are emerging to both capitalise on and support the new wave of eco-interests. As these reusable products become more mainstream, as seen from the success of brands like Fussy entering the marketplace, it is clear businesses are focusing their efforts on these green initiatives to appeal to this new era of consumerism. For businesses looking to thrive amidst this shift in appetite, the pressure is on to navigate new priorities and remain relevant.
In the same vein, governments globally are also taking note and are engaging in a range of legislative changes to foster a more circular future. Over the last year, the EU has implemented a range of legislation to force businesses in Europe and the UK alike to change and become more eco-conscious providers. This includes the Ecodesign for Sustainable Products Regulation (ESPR), which stands as part of the EU’s Circular Economy Action Plan and aims to advance the sustainability factor of products circulating in the EU marketplace. In fact, the ESPR is set to apply to any business that places products in the EU, regardless of where they are based.
Although many companies are taking meaningful steps toward circularity, others pursue the appearance of sustainability without making real changes. This makes it harder for consumers to tell who’s truly committed, fueling growing fears of greenwashing. Ensuring these claims are falsified is even more important for small to medium-sized businesses that rely on a committed and loyal customer base.
The EU’s circular movement and advancing consumer trust
Navigating the ESPR and other EU sustainability regulations can feel daunting for UK businesses, given the intricate and evolving compliance landscape. This pressure is compounded by growing consumer expectations for genuinely sustainable products and services.
Yet, these challenges present an opportunity. Embracing ESPR compliance—particularly through Digital Product Passports (DPPs) – enables businesses to fulfill regulatory demands while transparently demonstrating their sustainability efforts, and enhancing consumer trust and market appeal at the same time.
DPPs and the future of consumer relations
DPPs act as a conduit for sustainability efforts by facilitating information sharing that is vital to modern consumers, manufacturers, and all involved in a product’s supply chain. In simple terms, they act as the digital record of a physical product, securely tracking information about an item across its lifecycle, with the power to include event or transactional data and information concerning the product’s sustainability credentials (e.g. the carbon footprint of its production).
For SMEs, DPPs offer a practical way to support customers in making environmentally responsible choices at a product’s end-of-life. By including clear information on recycling and disposal, SMEs can demonstrate their commitment to sustainability beyond simply the purchase point. Consumers can access this guidance easily by scanning a QR code or barcode attached to the product using a smartphone -making the process both accessible and impactful.
By DPPs providing the consumer with easier access to sustainability information, businesses can empower their audience to make more conscious purchasing decisions and play an essential role in achieving stronger global sustainability. Via such insight – such as details on where materials were sourced, key data about raw material extraction, and how to recycle elements – consumers can also feel at ease that the purchases they make are more sustainable and more likely to have another lease of life.
From a business perspective, DPPs also enable them to connect with today’s conscious consumers by offering easier access to information about the sustainability credentials and potential of the products they purchase. Businesses can back up their sustainability claims by giving consumers access to comprehensive lifecycle data, effectively countering any greenwashing accusations with solid proof. This will also help foster a loyal customer base by positioning the company as accessible, honest, and aligned with its public image.
DPPs can also improve the experience for customers accessing the resale market, allowing them a convenient means to verify ownership and sourcing of products, the history of any repairs or upgrades, and the authenticity of the products they purchase.
The future of a thriving SME – Tackling regulatory and sustainability hurdles
Tackling regulatory and sustainability challenges may feel overwhelming for UK SMEs, but it also presents a unique chance to lead with purpose. By taking early steps to comply with the EU’s ESPR and its DPP requirements, SMEs can not only meet legal obligations but also position themselves as environmentally responsible businesses that care about the future.
Using DPPs to share clear, verifiable information about product sustainability allows smaller businesses to build trust, strengthen customer loyalty, and stand out in competitive markets. Proactively adopting DPPs now can help SMEs reshape their long-term strategy, showing they’re not just keeping up, but leading the way toward a more circular, transparent future.