With the EU parliament’s Ecodesign for Sustainable Products Regulation (ESPR) coming into force earlier this year ( 18th July), many businesses placing products in the market will now need to take steps to ensure they are compliant, some as early as 2027. Lars Rensing, CEO of Web3 specialist Protokol, provides SMEToday’s readers  an outline of the regulation, the reasons why it is being put in place, and crucially, how businesses can prepare.

According to current estimates, ‘a massive 2.12 billion tons of waste’ is disposed of every year, and an estimated 99% of what is bought is disposed of within six months. This is undeniably shocking, but perhaps unsurprising if we consider the linear economy model society has been operating in for quite some time.

This is why the EU is taking action to change the way businesses operate and encourage consumers to make more sustainable choices to ultimately create a more circular economy.

One of the initiatives underpinning this effort is the Ecodesign for Sustainable Products Regulation (ESPR) which came into force on the 18th of July 2024 and stands as part of the larger Circular Economy Action Plan (CEAP). The ESPR will focus on setting ecodesign requirements for sustainable products and will apply to select product groups, across specified industries where it expects to have the most impact. These will include, but are not limited to, the textiles, furniture, electronics, and ICT industries.

 The regulation will apply to any business placing these products on the EU marketplace, even if they are manufactured outside of the EU. The deadline for compliance will be around 2030, but may be as early as 2027 for some product groups, including batteries and textiles.

This is why, now more than ever, UK businesses must begin considering their journey toward compliance and take steps to understand the regulatory requirements that will affect them directly.

Unlocking a product’s story to power a more sustainable future  

A central component of the ESPR is the implementation of  Digital Product Passports (DPPs),  which are mandated for all products that fall within the specified categories. In simple terms, DPPs serve as digital records of a product’s journey, holding essential information such as the raw materials used in its production, right the way through to information on its end-of-life disposal. This data is accessible via a data carrier affixed to the product, such as a QR Code, which is scanned by a smartphone.

Through the transparent insight they provide into a product’s life cycle, they encourage all those in contact with a product to be more mindful of its sustainability attributes and inspire circular thinking. Businesses can access information to make more sustainable decisions about production and the supply chain, while consumers can make purchasing decisions with sustainability credentials in mind. They will also play a significant role in reducing the impact of waste and making ‘sustainable products the new norm in the EU’ by providing easily accessible information on correct end-of-life disposal. If we think about how this would apply to a laptop, once it has come to the end of its life, a consumer can scan the data carrier to access information on where it can be properly recycled.

This will also prove particularly important for safety when we consider the hazardous materials found in some electronics, such as lead and mercury, or persistent organic pollutants (POPs) in some upholstered furniture.

Ensuring compliance to promote sustainability

With the ESPR officially entering into force on July 18th, businesses must begin their journey toward compliance by preparing now and ensuring they align with the upcoming requirements.

As an initial step toward compliance, companies should assign a team leader who is responsible for researching the intricacies of the legislation, alongside their industry-specific requirements. It is worth noting here that not all details are currently available. For example, information on delegated acts, which are due to outline the exact requirements for product groups impacted, including what information will need to be available via the mandated DPPs, are yet to be published.

Only after this, will businesses start to gain an understanding of how their processes are likely to be impacted. Even without the current access to delegated acts, some of these changes will be clear to see from the offset. For example, there will be a need to consider the logistics of implementing DPPs, understanding as much as they can about DPPs or who could support implementation, and mapping out the supply chain to see where data may potentially need to be gathered from.

Starting this process now will prove invaluable later down the line, as every company will need to take a different approach to compliance depending on their individual needs. Businesses which prioritise these research tasks, ahead of the delegated acts being announced, are more likely to thrive alongside the EU’s regulation as they position themselves most effectively to begin crafting a strategy. Particularly, when they already know where they need to source information within their supply chain, and which DPP provider they might begin their journey alongside.

Understandably, the EU’s DPP mandate will prove a challenging journey for businesses affected and can prove overwhelming due to the complexity of the legislation teamed with the unchartered use of new technology. However, despite the obstacles, the benefits are considerable and businesses should feel positive about contributing towards a sustainable future, whilst optimising their supply chain efficiency.

Most importantly, as the EU drives this initiative, early readiness and proactive adoption will be key for businesses to remain competitive and harness the benefits of this technology-led sustainability strategy.