In today’s economy, sustainability is no longer a buzzword but a business imperative. From clothing to dog food, cleaning supplies to packaging, buyers increasingly seek brands and manufacturers that prioritize transparent and environmentally responsible business practices. They want to know where the products they buy are sourced from, the carbon footprint of production, how recyclable they are, and more. 

According to Deloitte Consulting, we’re approaching a “tipping point” where sustainability will be considered a baseline purchase requirement. In fact, as consumers eye more sustainable behaviors, so too are legislators. In Europe, recent product labeling regulations – including the EU’s Digital Product Passport and France’s Économie Circulaire – mandate the provision of detailed information on product sourcing, production, carbon emissions, and more.  

North America is not far behind. In California, Proposition 65 requires businesses to provide warnings on product labels and websites about exposure to chemicals known to cause cancer and harm.

This growing pressure is driving businesses to adopt circular supply chain strategies and adapt their practices accordingly. Nevertheless, this transition is not without its challenges. Businesses source supply chain data from across the globe, and data rarely flows up and down as it should. It’s often dirty, incomplete, and inconsistent, making it difficult to create reliable, trusted sustainability claims, product labels, or disclosures.  

Let’s examine these data challenges further and explore tools and strategies that make this task much easier:

Sustainability is a force for good, but any claims require a data standard 

To drive sustainability efforts and ensure full product transparency, regulatory frameworks require companies to track individual products throughout their lifecycle. This involves integrating data from material sourcing and extraction to end-of-life recycling. To ensure disclosure, this information is then permanently linked to each product through a QR code, RFID tag, or e-commerce listing which can be scanned or read to quickly access all relevant product details.

For smooth information flow, product data should be timely, well-organized, accurate, and enriched. However, modern supply chains are complex, which makes it challenging to maintain a consistent flow of high-quality, actionable data as products move through each step of the chain. Suppliers often fail to provide orderly and accurate data, leaving data experts with the task of translating this jumble of information into a coherent sustainability story.

Consider this scenario: A jeans manufacturer in one country depends on a cotton cooperative in another for raw materials. However, the cooperative lacks the resources to provide quality data and ensure product data governance. Their data is disorganized and delivered in unstructured formats such as spreadsheets, Word documents, or emails. 

The manual, chaotic, and error-prone process of consolidating and interpreting this data exposes brands to non-compliance, the possibility of fines, and loss of consumer trust. Even in California, it’s not difficult to find instances where retailers fail to list Proposition 65 data on their product detail pages – a violation of the law. 

Fortunately, technology, specifically product information management (PIM) software, has evolved to make this task easier.

How PIM supports product data governance and transparent disclosures

PIM software is an essential tool in facilitating product data governance. PIM can help brands organize their product data, including defining clear data collection processes across the supply chain while ensuring data is accurate, consistent, up-to-date, and accessible. 

With PIM, suppliers can easily upload basic product information to a centralized platform according to a baseline standard. Brands can then manage, organize, enrich, and distribute the information throughout the product journey – all from a single platform.

With their data in order, brands can begin to build consumer confidence through transparent and accurate information disclosures across all channels and touchpoints – including the all-important last mile, whether via a QR code or an Amazon listing. If product data is missing or not compliant, PIM will alert the data owner and create a high-priority workflow for rapid remediation using innovations like digital shelf analytics.

Additionally, PIMs enable businesses to track product performance and consumer behavior, improving products and driving sustainability initiatives. Lastly, reusing and recycling materials is essential for creating a circular supply chain. With PIM, the data collected during the product’s use phase can aid in responsible end-of-life practices, minimizing environmental impact.

Navigating the path to cleaner sustainability data

Regulations and messaging around environmental sustainability are crucial. But, as a society, we have significant work ahead to bridge the gap between the quality of available data and the actions required to empower consumers with accurate information for sustainable purchasing.

However, there are no quick fixes. Accomplishing sustainability goals and successfully managing supply chain circularity is an ongoing journey. Brands must pinpoint their position on a maturity model, strategize their next steps, and select the most suitable tools to drive impactful progress. By embracing a proactive and strategic mindset, brands can make substantial advancements toward achieving their sustainability objectives and regulatory compliance.