Challenges in Adopting Environmental Product Declarations: How to Overcome Them from rspuae's blog

In today’s environmentally conscious world, businesses are increasingly aware of the need for sustainability. One of the ways that companies can showcase their commitment to the environment is through Environmental Product Declarations(EPDs). These documents provide transparent, science-based information about a product's environmental impact throughout its lifecycle. However, while EPDs offer significant benefits, many organizations face challenges in adopting and implementing them effectively. This blog explores the main hurdles in adopting Environmental Product Declarations and offers insights into how companies can overcome them.

An Environmental Product Declaration is a standardized document that communicates the environmental impact of a product, detailing information such as energy consumption, emissions, and resource usage during the product’s lifecycle. The goal of an EPD is to provide consumers, businesses, and regulatory bodies with clear, verifiable data to support informed purchasing decisions and to promote sustainable product development.

While EPDs have grown in importance, they remain a relatively complex and evolving aspect of corporate sustainability efforts. They are based on Life Cycle Assessment (LCA), which evaluates the environmental effects of a product from raw material extraction through to end-of-life disposal. The development of an EPD often requires data collection, calculation, and external verification, all of which can present challenges.

The process of creating an Environmental Product Declaration requires accurate data to ensure the environmental claims are reliable. For most companies, gathering this data can be time-consuming and expensive. Many businesses do not have ready access to the type of detailed information needed for an LCA, especially when it comes to raw materials, production processes, energy usage, and transportation.

Moreover, it can be challenging to obtain accurate data across the entire supply chain, especially when suppliers do not provide necessary information about the environmental impact of the materials they supply. For instance, a product made of multiple components sourced from various suppliers may require data from all suppliers to ensure accuracy.

Another significant challenge in adopting Environmental Product Declarations is the lack of standardization across industries. While there are guidelines and frameworks available, such as ISO 14025, that define how to create EPDs, the interpretation of these standards can vary depending on the industry, region, or type of product. For example, a building material might have different EPD requirements compared to consumer electronics.

This lack of uniformity can lead to confusion, inconsistencies, and difficulties in comparing EPDs across different product categories, especially for consumers or businesses looking to make sustainable choices.

Developing an Environmental Product Declaration can be costly. The LCA process, which forms the basis of an EPD, requires specialized expertise and software, making it an expensive undertaking, especially for small and medium-sized businesses. The need for third-party verification adds another layer of cost.

Moreover, creating an EPD often requires multiple iterations as companies refine the data, correct errors, and ensure that their claims are both accurate and compliant with the relevant standards. For many businesses, this can seem like an expensive investment with no immediate return.

Creating an Environmental Product Declaration is not a straightforward process. It involves performing a Life Cycle Assessment (LCA), which is a detailed and comprehensive analysis that evaluates the environmental impact of every stage of a product’s lifecycle. This includes raw material extraction, manufacturing, distribution, use, and disposal.

For businesses unfamiliar with LCA methodologies, the process can be overwhelming. The LCA itself involves various stages, including defining the scope, inventory analysis, impact assessment, and interpretation of results, all of which require technical expertise and experience.

The adoption of Environmental Product Declarations can face resistance from various internal and external stakeholders. Within a company, decision-makers may be reluctant to allocate resources to EPD development, especially if the financial and environmental benefits are not immediately clear. Externally, customers or suppliers may not fully understand or trust the information presented in the EPD.

Regulatory frameworks related to environmental sustainability are continuously evolving. In some regions, Environmental Product Declarations may be mandatory for certain products, while in others, they are voluntary but encouraged. Furthermore, standards and regulations regarding EPDs can change, leaving companies scrambling to remain compliant.

As a result, companies may find it difficult to stay updated on the latest regulations or to adapt their processes when standards change.

Despite the growing interest in sustainability, many consumers still have limited awareness or understanding of Environmental Product Declarations. While an increasing number of businesses are adopting EPDs, the average consumer may not know how to interpret or evaluate the information presented.

This lack of awareness can reduce the effectiveness of an EPD in influencing purchasing decisions, which is one of the key motivations for businesses to invest in these declarations.

The Way Forward: Making Environmental Product Declarations Work

While the adoption of Environmental Product Declarations presents several challenges, the long-term benefits far outweigh the hurdles. By improving transparency, fostering sustainability, and demonstrating environmental responsibility, EPDs can help companies gain a competitive edge in the marketplace.

To overcome these challenges, businesses must adopt a proactive approach to data collection, collaborate with industry peers, educate stakeholders, and keep pace with evolving regulations. Moreover, embracing the use of technology, such as LCA software tools and third-party certification bodies, can help reduce complexity and streamline the process of creating an EPD.