A changing landscape for technology firms amidst the Ecodesign for Sustainable Product Regulation

It is no news that waste is a growing problem in modern society. As technology evolves at such a rapid pace, our desire for new devices and gadgets continues to lead to rising waste levels. In particular, for technology companies, e-waste is a prominent issue that must be tackled. To put this into context,  ‘there are almost 350 million tonnes of unrecycled e-waste on earth’. 

On this, as countries globally start to take note of the detrimental effects waste is having on the planet, the ‘need to act now to avoid the worst scenario’ is becoming a poignant narrative. 

Regarding the EU’s efforts to tackle such issues, it has recently championed a number of initiatives to encourage more sustainable business practices and ensure all parties are playing their role in supporting a circular economy. One of these is the Ecodesign for Sustainable Products Regulation (ESPR), which came into force on July 18th and stands as part of the EU’s greater Circular Economy Action Plan (CEAP). 

The ESPR aims to ‘significantly improve the circularity, energy performance, and other environmental sustainability aspects’ of products placed on the EU market by ensuring that the product groups within these specified industries have greater sustainability and recyclability attributes. 

These industries don’t just include ICT, the regulation will apply to a range including - but not limited to - furniture and chemicals. The deadline for compliance is 2030 for many of the designated industries and product groups, however for some - including ICT and electronics - it may be as soon as 2027. On this, it is worth noting any business placing products within these groups on the EU market will have to comply—including businesses who have manufactured their items elsewhere. 

As part of this legislative move toward greater product sustainability, the implementation of Digital Product Passports (DPPs) will be mandated across all specified product groups. However, although the information on the delegated acts (specific guidance pertinent to each industry and product group) is yet to be announced, tech businesses should begin considering their road to compliance to ensure a smooth transition amidst the changing landscape

Digital Product Passports and their helping hand in ensuring company compliance

In simple terms, DPPs are a transparent tool used to collect and provide data concerning the lifecycle of a product. They will prove vastly significant in supporting the EU’s sustainability efforts as they can provide insight into product information such as composition, recyclability attributes, and details pertaining to the carbon footprint of a product’s lifecycle. They can even provide product disposal information. 

These characteristics of DPPs are largely what made them the chosen tool to support the EU’s circularity efforts. Moreover, by mandating DPPs the EU hopes to empower technology businesses with greater levels of transparency into the products they use to encourage more sustainable practices surrounding design, sourcing, and end-of-life.  

Furthermore, DPPs also provide end-users with valuable information on a range of fronts. For example, providing end-users with guidance on how to dispose of an item responsibly when it reaches the end of its lifecycle, is expected to prompt consumers to act more sustainably in their day-to-day considerations. 

Moreover, DPPs will also prove particularly beneficial when concerning Western society’s issues with hazardous materials, such as those found in some electronic items, and hold the potential to transform e-waste management. To put this problem into perspective, ‘The UK currently produces around 3 million tons of hazardous waste annually, with almost half coming from commercial and industrial waste.’ Therefore, through DPPs and their ability to identify pertinent details regarding product makeup, e-waste could become an issue of the past. 

Regarding the composition of DPPs, they would be accessible via a data carrier, such as QR code or barcode, placed somewhere on the product. The data can then be obtained by scanning with a smartphone. The accessibility that DPPs provide through the compact data carrier, enables all individuals active in a product’s life-cycle to access a range of data on demand and play a key role in ensuring the item's circularity journey. 

What can technology companies do now to ensure compliance? 

Although the ESPR came into force on the 18th of July,  information on delegated acts is yet to be announced. Only here will companies be able to truly understand how this legislation will directly affect them and start creating a comprehensive strategy. 

However, whilst these details aren’t yet confirmed, tech companies who want to thrive alongside the changing landscape should start preparing themselves now and consider their roadmap to compliance to ensure a smooth transition when the time comes. 

As a first step, this can be assigning one lead or a team that will familiarise themselves with what we know about the business today, and starting to make note of all aspects of the supply chain and current operators that may be impacted by the legislation. Knowing where different types of data that may be part of the DPP requirement are held puts companies in a good place to create a strategy once the delegated acts are published. Having a view of partners that will support your DPP integration and existing partners that will support relevant data collection would be a useful set-up activity to consider before a strategy stage. 

By companies being proactive early on and preparing for the mandating of DPPs, a culture of collaboration, transparency, and environmental responsibility will be fostered amongst colleagues and consumers as all parties are provided with more pertinent information. 

Looking to a future of eco-conscious practices

The EU's initiative for a circular economy through the ESPR and mandating of DPPs marks a milestone commitment to lowering waste levels and provides hope for a more circular and sustainable economy. 

Understandably, this will prove disconcerting at first to companies placing products in the EU marketplace. However, the potential it holds for businesses to play an active role in supporting a more sustainable economy is an opportunity to grab with both hands. On this, businesses should look forward to the positive outcomes of their efforts, such as contributing to a sustainable future, validating their sustainability credentials, and optimizing supply chain efficiency. 

By companies acting promptly and embracing the change now, through understanding the legislation and beginning their journey to compliance, there are numerous long-term gains for companies to become eco-conscious practices that play a pivotal role in ensuring a sustainable economy.