How far is your organization with its supply chain traceability work? Sustainability consultant Joel Svedlund warns that it’s well past time to get started, and shares how the outdoor industry can best prepare.

We are standing in front of an avalanche of new legislation and regulation in the EU – more than 30 new legislative initiatives, requiring sustainable business practices will enter into force between 2024 and 2028. A new base level in sustainability requirements both on corporate and product level is being established under the EU Green Deal, where many of the sustainability efforts that were previously voluntary and considered to build “green” brand value, will now be mandatory and monitored by authorities. While the textile sector has been in focus in the media, the laws and regulations that are being developed will apply to all types of consumer products.

A critical industry challenge is that the new legislative initiatives that will be imposed on us very soon are not ready yet and we only know their implications on a general level. So, why should we act before these laws are ready? The short answer is: We already know that they will require extensive internal groundwork, much of which should have started years ago.

What is the EU Green Deal?

Many of the proposed laws and regulations are linked to an overarching strategy called the EU Green Deal and a strategy/plan called the Circular Economy Action Plan. These are general, for all product types. For textile products, they have been further specified in the EU Textiles Strategy.

What does this looming legal snowslide consist of, and what does it mean for us? Initiatives with names such as Empowering Consumers, Substantiating Green Claims, and Ecodesign for Sustainable Products set the direction. A few examples of proposed legal restrictions ahead of us:

 

• A ban on internal eco-labels and pre-approval by authorities of environmental claims, with strict requirements for proof before putting the product on the market.
• Radically increased legal rights for consumer information and right to repair products.
• Standardised, verified sustainability data requirements and a new EU Product Environmental Footprint (PEF) tool.
• A total ban on PFAS, including PTFE, for all non-essential uses (i.e., not society or life supporting uses).
• A requirement to prove deforestation-free materials in wood, leather and soy-based products.
• Digital product passports that fundamentally change all information management for products, with requirements for traceability throughout the entire life cycle and in some cases all the way down to the individual product.

Where to begin?

My tip is to build a solid foundation by mapping your supply chain. Anyone who has not done in-depth supply chain mapping and started tracing their materials and processes to their sources will have a very big challenge when the new rulebook is implemented. As a second step, or in parallel if you want to get ahead, I suggest starting to collect environmental impact data for each step in the value chain.

We are entering new times, and it is urgent to prepare your business. Climate and carbon dioxide are important, but only one of several factors to keep track of. So, if you don’t have a well-thought-out, systematic sustainability work that is prioritized by top management and deeply integrated in your business, it’s time to start building it now. If you already have a clear sustainability strategy, it’s time to evaluate whether it meets future legal requirements or whether you will be one of many companies that have to work with the authorities’ knife to their throat.

 

Photo: iStock