Proactive compliance: sustainability regulations as a competitive advantage

Anyone who has ever prepared a major project — whether it's training for a marathon or a family trip — knows how crucial well-thought-out planning is. On the other hand, anyone who starts spontaneously and without preparation quickly realizes how bumpy everything can go.

The situation is similar for companies when they are faced with new sustainability regulations. Numerous countries and industries are currently introducing rules that require more comprehensive accountability for environmental and social impacts. Eine proactive preparation helps to avoid last-minute chaos and expensive mistakes. forecasts, when and where new requirements apply and Whom They concern exactly, but they are anything but simple.

A look at the development shows that ESG-related regulations are in recent ten years circa 155% increased (source: [1]) and the trend continues. If you address the new requirements in good time, you can not only see compliance as a duty, but also use it strategically for yourself.

Why sustainability regulations are relevant

In the past decades There were often no binding requirements that hold companies responsible for environmental pollution (source: [2]). greenwashing — i.e. misleading information about sustainability — was therefore widespread. A survey from Year 2022 revealed that 58% of the CEOs and managers surveyed admitted that they had already done greenwashing in their own company (source: [3]).

The reasons for this include low enforcement of existing directives: In the last 30 yearsDoes the Federal Trade Commission in the USA have less than 100 Negotiated cases of greenwashing (source: [4]). At the same time, the negative environmental effects are immense: The global textile industry alone is responsible for 10% responsible for global CO₂ emissions (source: [5]), during shipping and returns around 37% account for all greenhouse gases in trade (source: [6]).

It is becoming increasingly apparent that current processes in production, transport and consumption are not sustainable. Increased consumer pressure and new legislation are setting higher standards for responsible business.

Examples of current and upcoming regulations

Sustainability rules are developing globally and are intertwined. Here are some important examples:

Corporate Sustainability Reporting Directive (CSRD)

This EU directive is part of the “European Green Deal” and obliges large companies from the financial year 2024(Source: [7]) for detailed reports on their environmental, social and governance performance. Companies with more than 250 employees with an annual turnover of over €40 million or a balance sheet total of over €20 million (Source: [7]). Listed SMEs and non-EU companies with high turnover in the EU also fall within the scope.

Digital product passports (DPP)

Digital product passports, which contain information about the product, the supply chain or repair history, are also part of the EU initiatives. The first industries must start from 2026 (Source: [8]) expect the corresponding data to be made available in a uniform format.

Sustainable Finance Disclosure Regulation (SFDR)

This regulation is intended to curb greenwashing in the financial sector and channel capital into sustainable projects. First disclosure requirements have been in place since March 2021 (Source: [9]), further regulations came into force 2022 in force.

EU taxonomy

The EU taxonomy defines what is considered “ecologically sustainable” and sets criteria for climate protection, water use or biodiversity. The first reporting requirements occurred 2022 In force, full implementation is up to the end 2025 (Source: [10]) planned.

Supply Chain Act (LkSG) in Germany

Since 2023 (Source: [11]) must companies from 3,000 Monitor human rights and environmental risks in their supply chains. From 2024 Does this also apply to companies from 1,000 employees (source: [11]). Violations may result in penalties of up to €8 million or 2% of global turnover (source: [11]).

Proactive preparation: Data is the key to compliance

Numerous legislations require detailed evidence. Compliance with these regulations is difficult without solid and consistent data.

Collect and analyze data

Regulations such as CSRD or DPP require precise information on CO₂ emissions, recycling rates or supply chain conditions. Collecting this information at an early stage avoids bottlenecks as soon as notifications become mandatory.

Manage and enrich data

Raw data must be structured and processed. A PIM system such as Ainavio provides a central platform to record, update and continuously supplement all product data with sustainability features.

Integrate supplier data

Supply chains in particular account for large parts of the environmental and social impact. Automated onboarding processes for supplier data ensure consistent collection. AI-based solutions help identify gaps or discrepancies in real time.

Use AI technology

Artificial intelligence enables faster and more accurate data analysis. AI can identify duplicates, add missing information, and highlight potential regulatory violations. This approach helps companies answer compliance questions efficiently and reliably.

Seamless system integration

In order to minimize sources of error, it makes sense to integrate all relevant tools. PIM, supplier portals, AI analysis modules, and other applications should communicate consistently. This provides a comprehensive overview that makes compliance with regulations easier.

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