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As global sustainability regulations evolve, New Zealand manufacturers must stay ahead of the curve to maintain their competitive edge, especially with upcoming policies like the European Union’s Ecodesign for Sustainable Products Regulation (ESPR). But what is the ESPR, and how can manufacturers in New Zealand prepare for it?

What is the ESPR?

The ESPR is a new EU policy aimed at making products more sustainable and circular throughout their lifecycle, supporting the EU’s 2050 climate goals. The ESPR applies to products sold within the EU, setting specific sustainability requirements for design, use and disposal. It applies to most products sold in the EU, except for some like food and medicines. Non-compliant products may face fines or bans.

 

 

 

 

Although it took effect in July 2024, the detailed rules will be developed over the next year. The regulation aims to make products more durable, reusable, repairable, and recyclable, while banning the destruction of unsold goods like electronics and textiles.

A digital product passport will also be required, giving consumers direct access to sustainability data and exposing brands to greenwashing claims under the Green Claims Directive.

Why should New Zealand manufacturers pay attention to ESPR?

For manufacturers exporting to the EU or intend to:

• Failure to prepare for the regulations could result in loss of market access, fines, or even prosecution.
• Your products will face stricter comparisons on sustainability and circularity, which could impact your market share positively or negatively.

Even if your business doesn’t currently export to the EU, the trends set by the ESPR are likely to influence regulations and purchasing decisions in other markets.

• As supply chains globalise, multinational corporations may enforce ESPR-style standards on all their suppliers, no matter where they are located.
• With more sustainability and circularity data available, products without this data risk being left behind, even in domestic markets.

Preparing for the ESPR can also offer benefits beyond regulatory compliance. As consumers and investors increasingly prioritise sustainability, early adopters of sustainable practices can enhance their brand reputation, reduce costs through resource efficiency, and innovate with new products that meet the growing demand for more sustainable alternatives.

Steps New Zealand manufacturers can take to prepare for ESPR

1. Start gathering the necessary data

Sustainability data needs to conform to international standards and may need to be verified to avoid claims of greenwashing. A Life Cycle Assessment (LCA) or Environmental Product Declaration (EPD) can help you understand and communicate the environmental impact of your products, from raw material extraction to disposal.

Circularity data is now supported by new standards, ISO 59020 describes the minimum data requirements for quantifying the circularity of your products. Tools like the Material Circularity Indicator (MCI) or the Circular Transition Indicators (CTI) can help you to apply this standard to benchmark and report your circularity alongside your LCA or EPD.

Start gathering and verifying the necessary data well in advance. This process can be resource-intensive, so early preparation is key to a smooth transition.

2. Engage with your supply chain
   Both your operations and supply chains must meet sustainability standards. Start by mapping your supply chain to find areas for improvement.
3. Invest in circular design
   Circularity is at the heart of the ESPR. Start by benchmarking your operation’s circularity with ISO-compliant metrics. Focus on redesigning products to use fewer materials, last longer, and be easier to repair or recycle.

Shifting from a linear “take, make, waste” model to a circular economy is essential. Consider take-back schemes, repair options, and effective recycling as part of your product stewardship strategy.

4. Strengthen eco-innovation
   The ESPR’s push for sustainable product designs gives businesses investing in eco-innovation a competitive edge. Whether it’s creating sustainable materials or improving production efficiency, innovation will be crucial for meeting ESPR standards and staying competitive in the global market.
5. Stay informed on regulatory developments
   It’s crucial to stay updated on the latest developments. Engaging with industry groups can help you understand the impact on your business. Being proactive, rather than reactive, will enable you to adapt your operations more strategically.
6. Embrace digital tools for compliance
   Choosing the right Digital Product Passport (DPP) platform is essential, with several leading platforms already working on interoperability and standardisation. Since DPPs must meet EU requirements, developing a home-grown solution could be challenging.

These tools are key for meeting ESPR’s data needs, including traceability, recyclability, and environmental performance. Investing in the right technology will help your business meet regulatory demands efficiently.

Getting ready for the ESPR may seem daunting, but it’s also an opportunity for New Zealand manufacturers to innovate, enhance their sustainability credentials, and future-proof their business in an increasingly eco-conscious world.

By understanding the ESPR’s requirements and adopting proactive measures, you can meet compliance and unlock new business opportunities in global markets.