The EU’s eco-legislation and navigating greenwashing accusations as a sustainable business

As sustainability continues to become an increasingly pressing issue in the modern world, businesses and consumers alike must change their ways to protect the planet’s future. A change in consumer attitudes towards product purchasing has already been seen, with 70 per cent of consumers willing to pay more for products from sustainable brands.

Moreover, as well-known brands such as Dove bring reusable and refillable products to the market as a way of supporting the global effort to reduce waste, companies are also bringing into circulation such items to appeal to a growing breed of customers -  the eco-friendly consumer. This change in consumer attitudes brings added pressure on businesses as they have to navigate new priorities and remain relevant in a shifting landscape. 

Similarly, governments are also taking note and implementing a range of initiatives to support a more circular and sustainable economy. Over the last year, the EU has implemented a range of legislation to force businesses 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.

While some businesses are making genuine efforts to support circularity, others seek recognition without real commitment, making it challenging for consumers to differentiate between the two—leading to increasing concerns about greenwashing.

The EU’s ESPR and fostering consumer trust

The ESPR, along with other EU sustainability regulations, may seem like a challenge for businesses selling products in the EU due to its complex and varied requirements. This challenge is further intensified by the need to meet consumers' increasing demand for sustainable products and services.

However, one challenge can help solve another. By embracing ESPR compliance—especially the requirement for Digital Product Passports (DPPs)—businesses can not only meet regulatory obligations but also showcase their sustainability credentials, strengthening their appeal to consumers in a single step.

The power of DPPs to connect with the eco-consumer

DPPs act as a lynchpin for sustainability efforts by facilitating information sharing that is vital to consumers,  producers and all other parties in the supply chain in terms of the sustainability credentials of a product. They act as a digital record of a physical product, securely keeping track of information about it across its lifecycle, with the ability to include event or transactional data, and data about its sustainability credentials such as the carbon footprint of its production.

DPPs also enable businesses to provide a clear path to end-of-life handling - for example, they can provide information on how to dispose of items in the most environmentally friendly way and what materials can be recycled. To access the DPP, consumers will have to scan a data carrier (such as a barcode or QR code) which will be affixed to the physical product with a device such as a smartphone.

With DPPs providing the consumer with easier access to sustainability information, sustainable action is more achievable. Via such insight - such as details on where materials were sourced, key data about raw material extraction, and how to recycle elements -  consumers can feel reassured that the purchases they make are more sustainable and more likely to have another lease of life.

Crucially, DPPs also enable businesses 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 true to its pledge.

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.

Overcoming dual challenges to become truly sustainable businesses

Businesses aiming to enter a new chapter and connect with the modern consumer’s ‘eco-eyes’ should take action now, not only to comply with the EU’s ESPR or its DPP mandate but also to be seen as a firm prioritising the future of our planet. By using DPPs to highlight their commitment to sustainability, brands can enhance their reputation as eco-conscious and circular, boosting both brand loyalty and overall perception.

By proactively addressing the ESPR’s DPP mandate, businesses can redefine their future and establish themselves as forward-thinking, data-driven brands. As consumers increasingly prioritise eco-conscious choices, starting the DPP journey today will support a company's positioning as a leader in industry circularity.

Matthew Ekholm is the Digital Product Passport and Circularity Specialist at Protokol, a specialist Web3 development and consulting provider.