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Can I see your (product) passport please!

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23 Apr, 2024

This post was originally published on Sustainability Matters

Digital Product Passports that allow consumers to scan a product’s label to read up on its sustainability credentials and understand how to repair and recycle it are one step closer. In time, these passports will likely apply to everyday products like clothing and phones as the world moves to a more circular economy.

Upping the circular economy game in the EU and locally

Agreed in principle by the European Parliament in December 2023, the new Ecodesign for Sustainable Products Regulation (ESPR) will require almost any product in the EU market to provide proof that it’s sustainable, durable and recyclable. This means that local businesses need to up their circular economy game to continue to trade with the European Union.

thinkstep-anz circular economy expert Jim Goddin said, “Now is the time for businesses to get ready.” Goddin draws on experience gained from many years of working with the Ellen MacArthur Foundation, a leading global circular economy organisation. The Chartered Engineer and Chartered Environmentalist moved from the UK to New Zealand in late 2023 to fulfil a lifelong dream and to support businesses in New Zealand and Australia. “There is a lot of interest in the circular economy in both countries, and it’s exciting to be here,” he said.

“The circular economy is a concept that changes how we produce and consume goods,” Goddin explained. “It moves us away from the current ‘linear’ model of making, using and throwing away.” It dramatically reduces waste, makes the most of resources, extends the life of products and recovers more materials.

Not the same as recycling

“The circular economy isn’t the same as recycling,” Goddin said. “While recycling is an important solution and converts waste into reusable material, the recycling process can sometimes devalue that material.” For example, we can’t make a milk bottle from purely recycled materials. There is always virgin material needed.

The circular economy aims to prevent waste and pollution from being created in the first place by designing products so that they, and the materials that make them up, can be used for as long as possible at their highest value. This means thinking beyond recycling and looking at opportunities for consumers to repair and reuse products and for manufacturers to remanufacture them.

Information for a more circular economy

However, one of the greatest challenges to making progress with a circular economy is the lack of data and transparency across supply chains. “We need to know what materials products are made of to keep them in service for longer, to work out how to reuse or repair them, to know if they can be safely composted, or to separate them effectively to maximise the value of recycled materials,” Goddin said. This is where Digital Product Passports come into play.

What the ESPR means for Australian businesses

Businesses trading with the EU — or supplying those who do — will need a Digital Product Passport (DPP).

  • The DPP tracks where a product has been over its entire lifecycle. It’s a digital record that contains information about its ‘journey’ and what it is made from.
  • Companies can apply this information to use resources more efficiently, shore up their supply chains, cut down on waste, extend the lifespan of a product and improve recycling initiatives. Consumers can make more informed decisions.
     

Businesses may need to provide data on several aspects:

  • How durable the product is. Can it be reused, upgraded or repaired?
  • Whether it contains substances that cannot be circulated (passed on). Examples include coatings that prevent composting or chemicals that prevent specific uses (eg, food applications).
  • How energy- and resource-efficient it is.
  • How much recycled content it contains.
  • Whether it can be remanufactured or recycled.
  • What its carbon footprint is.

Where to start:

See this as an opportunity

This isn’t just another hurdle but a chance for you to tell your product’s story and for your customers to understand its value. What story do you want them to hear, and how do you back that up with evidence to give them confidence to believe it?

Prepare in advance for the data you’ll need

A lot of your data will need to be verified by qualified third parties against established standards. This will take time.

Do your homework

Investigate how you will structure, store and share this information. Many digital platforms are emerging to help you do this. The platforms will eventually all need to work together.

Consider the lifetime of your data

How will you maintain the data? What additional value could you get from it?

Make yourself stand out

Think about your competition. How will the sustainability and circularity of your products stand out from the crowd?

When will I need the passport?

Batteries and vehicles, textiles, electronics and ICT, furniture, plastics, construction materials and chemicals will be the first industries that will need to get their passports sorted. While the final timeline is still being worked on, 2026/7 looks likely for the first industries to adopt DPPs. Others are expected to follow suit by 2030.

Growing up on the remote Orkney Islands off the coast of Scotland, Jim Goddin, Head of Circular Economy, thinkstep-anz, was interested in sustainability from an early age. From watching Europe’s largest experimental wind turbine from the windows of his small school to admiring a stream-powered electricity generator at his parents’ property, he was also fascinated by engineering. As a leading expert in circular economy, he has collaborated with prestigious organisations such as the Ellen MacArthur Foundation. He has worked extensively on developing eco-design tools like calculators that measure circularity and assess business risks resulting from critical materials and hazardous substances legislation.

Image credit: iStock.com/BlackSalmon

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Embedding environmental stewardship into IT governance frameworks

Embedding environmental stewardship into IT governance frameworks

Integrating environmental stewardship into IT governance frameworks has become essential as businesses increasingly prioritise sustainability. IT operations contribute significantly to carbon emissions, energy consumption and electronic waste (e-waste). Organisations that embed environmental responsibility into their IT governance can reduce their ecological footprint, improve operational efficiency and strengthen their brand reputation.

Erica Smith, chief alliance officer and environmental, social and governance lead, Blue Connections IT, said, “Environmental stewardship supports financial performance, risk mitigation and brand differentiation. With rising energy costs, increased consumer demand for sustainable products and services, and growing pressure from investors and regulators, companies can no longer afford to overlook their environmental responsibilities.

“Poor sustainability practices in IT can lead to high operational costs, supply chain risks and reputational damage. Conversely, a proactive approach improves efficiency, attracts environmentally conscious customers and helps future-proof businesses against evolving policy and regulatory changes.

“Integrating environmental responsibility into IT governance integrates sustainability initiatives into decision-making systematically. Organisations can reduce waste, lower energy consumption and extend the lifecycle of technology assets while positioning themselves as responsible leaders in an increasingly climate-aware market.”

There are four key areas that present opportunities to embed environmental stewardship into IT governance frameworks.

1. Device lifecycle management

A structured approach to managing the lifecycle of IT assets ensures devices are deployed efficiently, maintained properly and retired responsibly at the end of their useful life. Embracing a circular economy model, where equipment is refurbished, reused or ethically recycled, can significantly reduce e-waste and resource use. Companies that adopt this approach lower their environmental impact and unlock financial value by extending the lifecycle of IT assets.

Smith said, “Effective asset recovery strategies further support sustainability efforts. Integrating secure data erasure and refurbishment into IT governance policies lets businesses repurpose functional devices within the organisation or resell them to external buyers. Responsible e-waste recycling also supports companies to process materials ethically in instances where resale is not viable, reducing landfill contributions and preventing environmental contamination. The adoption of industry-certified data sanitisation methods also safeguards compliance with security and privacy regulations.”

2. Sustainable procurement

IT governance frameworks should prioritise the selection of technology vendors and partners committed to sustainable manufacturing, responsible sourcing and energy-efficient product design. This includes favouring IT hardware with a high percentage of post-consumer recycled materials and using minimal packaging. Additionally, employing Device-as-a-Service (DaaS) models optimises IT asset utilisation while reducing upfront investment and unnecessary hardware purchases.

Partnerships with sustainability-driven IT service providers can further enhance an organisation’s environmental impact. Working with partners that offer end-to-end IT asset management solutions, encompassing secure device deployment, certified data sanitisation and ethical recycling, simplifies the process of aligning IT operations with sustainability goals. Companies that prioritise environmental stewardship in their IT governance framework gain a competitive advantage by demonstrating their commitment to responsible business practices.

3. Energy consumption

Data centres, cloud services and enterprise networks require substantial energy resources, making green IT practices essential. IT governance frameworks should include policies to reduce consumption by optimising server efficiency, reducing redundant infrastructure and using renewable energy sources. Cloud providers with strong sustainability credentials can support carbon reduction initiatives, while virtualisation strategies can consolidate workloads and improve overall energy efficiency.

4. Employee engagement

Educating staff on sustainable IT practices, such as energy-efficient device usage and responsible e-waste disposal, creates a culture of accountability. Organisations that implement green workplace initiatives, such as responsible end-of-life disposal programs, reinforce their commitment to sustainability at all levels.

“IT governance must also align with corporate environmental, social and governance commitments. Companies can contribute to broader sustainability objectives by embedding environmental stewardship into IT policies, such as net-zero emissions targets and responsible supply chain management. Clear reporting mechanisms and regular sustainability audits aid transparency, letting businesses track their progress and demonstrate accountability to stakeholders,” Smith said.

Government regulations and evolving industry standards are increasingly shaping the sustainability expectations for organisations. Aligning IT governance frameworks with best practices for environmental stewardship keeps companies ahead of regulatory requirements. Proactive adoption of sustainable IT practices positions businesses as industry leaders in environmental responsibility.

Smith said, “Integrating environmental stewardship into IT governance frameworks is not just about meeting compliance obligations; it’s about futureproofing company operations and prioritising the broader environment. Taking a proactive approach to sustainability lets organisations drive efficiency, reduce long-term costs and contribute to a healthier planet. Businesses that lead in sustainable IT governance will be well-positioned for long-term success as environmental concerns continue to shape consumer and corporate priorities.”

Image credit: iStock.com/Petmal

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