The EU's circularity movement: Becoming a truly sustainable business

As global warming continues to strain the planet, the importance of increased sustainability and circularity is only becoming a more pressing issue for society. We can already see that the consumer mindset is shifting and many are employing an ‘eco-eye’ when it comes to purchasing decisions. You only have to note that nearly three-quarters of consumers in the United Kingdom said they aim to recycle or compost household waste to realise that attitudes are changing when it comes to product circularity.

Governments globally are taking action and beginning to implement a range of actions to support a more circular and sustainable economy. In the past year alone, the EU has brought in 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 genuinely working toward circularity, others seek recognition without making real efforts. This makes it challenging for consumers and buyers to differentiate between the two, leading to growing concerns about greenwashing and who is truly sustainable. Therefore, the EU initiatives that prioritise the transparency of sustainability data could help businesses prove their credentials to customers.

The EU’s sustainability era and fostering consumer trust

The ESPR, alongside the EU’s other sustainability legislation, could potentially be seen as a burden for businesses that place products in the EU market due to their complex and varied requirements. This pressure is compounded by the strain on businesses to appeal to consumers' growing appetite for sustainable products and services.

However, if businesses are strategic, there is an incredibly clear way of solving one issue - by simply leaning into another! By focusing on ESPR compliance—especially the requirement for Digital Product Passports (DPPs) —businesses can not only meet regulatory standards but also showcase their sustainability efforts and enhance their appeal to consumers at the same time.

DPPs - A helping hand for the modern business

By design, 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. They can also provide data about an item’s sustainability credentials like the carbon footprint of its production.

With the data that DPPs provide - such as that noted above - being accessible to the consumer, consumers are more empowered to take sustainable action. Through such insight, consumers should feel reassured that they are able to compare products to make more sustainable choices.

Similarly, DPPs help businesses connect with modern consumers by offering transparent insights into the sustainable composition of their products. These passports can detail various aspects, such as the origins of materials and key data on raw material extraction processes. By equipping consumers with precise lifecycle data, businesses can substantiate their sustainability claims, mitigating the risk of greenwashing through verifiable proof.

As a recent circularity survey noted, 60% of consumers expect the brands they support to have a position on social issues. Therefore, by utilising the full potential of DPPs, brands can not only highlight their commitment to a sustainable future but also provide the customer with the ‘backstage’ information about how their products, services, or operations are made more sustainable. Such transparency not only helps prevent greenwashing accusations but also fosters customer loyalty by positioning the company as open, trustworthy, and committed to its sustainability promises.

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.

Making one move count twice - The road to becoming a circular business

To thrive in an evolving market and align with the modern consumer’s shifting priorities, businesses must act now—not just to comply with the EU’s ESPR and DPP mandate but to establish themselves as leaders in sustainability. This will prove particularly important for the technology industry, as electronics have been earmarked as a DPP mandate priority group due to the detrimental amounts of e-waste the sector produces.

Taking a proactive approach to the ESPR’s DPP requirements allows companies to redefine their positioning and emerge as forward-thinking, data-driven brands of the future. With consumer awareness of sustainability growing, embracing DPPs now presents a unique opportunity to lead in circularity and set the standard within your industry. In other words, by leveraging DPPs, businesses can highlight their environmental commitments and strengthen their reputation as eco-conscious, circular businesses, fostering greater trust and loyalty.