By Anja Padget
4 minute read
Anja Padget By Anja Padget
4 minute read
It is on everyone’s minds in the textile industry. Whomever you speak to, if you are a company working with textile products both shoes and garments, everyone is aware that 2024 will be a defining year. Towards the end of 2023, we suddenly saw the fast pace of EU legislation, ending December with 2 legislations adopted - both affecting the industry of both small and large companies selling their goods on the EU market. EU legislation can be hard to understand and to grasp what it means for an operating company.
At Delogue we are following these legislations very closely, as we understand the vital role we need to play to ensure that our customers are prepared and ready to meet the requirements. It not only requires them to collect a vast amount of data to be able to deliver data to reports and key accounts, but it also requires them to take a look at the way products are created. The creation of products is such an important part of a design company, and now the EU legislation is forcing companies to change their processes. It demands a deeper understanding of a product's assembly process, where the product is being manufactured, and what the product consists of. All of this is something that needs to be carefully thought out and decided in the beginning stage of a product's lifecycle.
Two game-changing laws are being adopted now
In December 2023 we saw the following 2 laws being adopted:
December 5th: Ecodesign for Sustainable Products Regulations (ESPR)
December 14th: Corporate Sustainability Due Diligence Directive (CSDDD)
We also saw on the 18th of December, that the EU Council adopted its negotiating position on new rules for more sustainable packaging in the EU.
The Ecodesign regulation aims to improve various aspects of products throughout their lifecycle to make them more durable and reliable, easier to reuse, upgrade, repair, and recycle, and use fewer resources, energy, and water. The regulation includes a Digital Product Passport (DPP), which is to contain accurate and up-to-date information, which will enable consumers to make informed purchasing choices. According to the agreed text, the commission will manage a public web portal allowing consumers to search and compare information included in product passports.
The CSDDD aims to enhance the protection of the environment and human rights in the EU and globally. The directive will mean that large companies must deal with negative impacts on human rights and the environment throughout their value chain, as well as document and report on their efforts and progress. The directive initially applies to companies with over 500 employees and a net turnover of €150 million, but the requirements will no doubt "trickle down" through the supply chain and also affect SMEs selling to large companies.
2024 Readiness: Mastering the Surge of Compliance Data
Both the Ecodesign regulation and CSDDD require a vast amount of data to be collected. From a product's components, weight, and circular attributes, to supply chain mapping of all tiers, mitigation, and communication, to documentation requirements for certification, audits, and chemical testing. The requirements are not few, and they demand a new way of developing a product. All aspects need to be considered much more carefully to be able to deliver those data points required.
We therefore expect 2024 to be the year where companies in the textile industry will spend mapping their tech stack, and thereby getting ready to be compliant. We believe that the tech stack needs to include a PLM in the center for storing all relevant product information needed for the DPP. The product information needed will primarily come from the Bill of Materials (BOM), which therefore needs to become much more extensive than what many design companies are used to working with. Packaging material, trimming, weight, component supplier, and extra components for repairability. All aspects need to be considered and remembered at the beginning of the product creation.
The coming year needs to be used wisely and to ensure that all team members in a company are aware of the need for more details. It does require more work, which means that a need for a smarter and more effective way of working is necessary to ensure that both brand employees and suppliers are supported in the best possible way.
Seize the Future: Embrace Compliance with Delogue PLM
Standing at the threshold of a transformative era, the shift towards ESG compliance and sustainability is inevitable. Delogue's 2024 roadmap offers more than a glimpse into the future; it presents a comprehensive strategy designed to navigate the tumultuous waters of EU legislation and ESG mandates. This roadmap is your brand's guide to not just survive but thrive in the forthcoming regulatory environment.
We invite you to join our pivotal webinar, "Thinking Ahead: 2024 Delogue ESG Roadmap Session," where we'll explore the intricacies of our strategy to fortify your brand. It’s an opportunity to immerse yourself in the insights, strategies, and tools that will pave the way for a sustainable, compliant, and innovative future.