Navigating ESPR Compliance: How Repasdo Simplifies Sustainability for SMEs

The previous article outlined the basics of Ecodesign for Sustainable Products Regulation (ESPR) and Digital Product Passports (DPP). But how does it affect the market? The ESPR came into force in July 2024 and aims to improve the environmental sustainability and circularity of physical goods sold in the European market. It will use delegated acts to implement product-specific rules and give economic operators, especially small and medium-sized enterprises (SMEs), sufficient time to comply.

 

Why Does ESPR Matter?

ESPR is critical because it combines several laws and regulations that aim to make product consumption more sustainable. The European Commission (EC) emphasizes the urgency of this regulation, highlighting that the current rate of consumption in the EU, representing 10% of the global population, significantly impacts the planet. The broken planetary boundaries are a testament to this unsustainable consumption pattern.

Although 80% of the environmental impact is predetermined during the design phase, most products today are not designed for longevity, redesign, repair, or resale. Creating transparent and consistent products will not only support the EU economy but also deliver significant benefits for both the planet and people. The urgency is clear—we cannot afford to wait any longer.

 

How Does ESPR Affect the Market?

The textile industry, moving from being unregulated to regulated, will now need to comply to ecodesign requirements set by ESPR. This framework will become the new license to operate in the European market, meaning non-compliance will stop companies from selling their products in Europe. Consequently, this legislation impacts not only the European market but also any market dependent on European sales.

SMEs are particularly vulnerable during this transformative period. Over 98% of the European apparel industry comprises SMEs, representing approximately 143,000 companies across the value chain. The upcoming regulation is detailed, time-consuming, and expensive, which does not align well with the current operational climate of SMEs.

The Corporate Sustainability Reporting Directive (CSRD) is linked to ESPR through ecodesign. While CSRD primarily applies to large companies, requiring them to publish regular reports on their environmental and social impact activities, it indirectly affects SMEs. Large companies often push reporting requirements down the value chain, impacting smaller suppliers and partners.

 

Empowering Compliance with Repasdo

Repasdo offers a practical solution for brands and manufacturers navigating ESPR and DPP requirements. Recognizing the significant role manufacturers play in the European apparel industry, Repasdo provides a platform that serves both brands and manufacturers. This facilitates seamless reporting and detailed information sharing from smaller suppliers and partners.

SMEs are often faced with considerable challenges due to limited resources and complex onboarding processes. Repasdo addresses this with a smart, flexible, and cost-effective solution tailored for SMEs. Unlike competitors with complex onboarding, Repasdo’s subscription-based model is straightforward and requires minimal direct intervention, making it accessible and practical for SMEs.

 

Key Features

• Digital Product Passports: Flexible features for generating and managing DPPs that comply with upcoming regulations.
• Automated Compliance: Low-threshold solutions tailored for SMEs in the textile industry.
• Additional Value Streams: Add-ons for storytelling, after-sales services, and circularity initiatives.

 

Conclusion

The Ecodesign for Sustainable Products Regulation (ESPR) is a transformative regulation aimed at enhancing the sustainability and circularity of products in the European market. By mandating compliance through detailed and product-specific rules, ESPR impacts both large corporations and SMEs, with significant emphasis on transparency and sustainability.

Repasdo offers a comprehensive solution to help brands and manufacturers navigate these new regulations. The platform simplifies compliance, enhances collaboration, and provides cost-effective, flexible solutions tailored to the unique challenges faced by SMEs in the apparel industry. This ensures that businesses, regardless of size, can meet regulatory requirements and thrive in the evolving market landscape.