EU Green Deal Compliance & Testing

Carbon emissions have a price. The CBAM aims to prevent evasion of EU environmental regulations (e.g. through offshoring). It will tax high-carbon imports, making unsustainable production more costly.

Suppliers in and outside the EU must meet EU environmental standards, such as limiting water use and reducing emissions.

• As of 2023, importers must report greenhouse gas emissions embedded in their goods
• By 2026, importers must purchase CBAM certificates to offset those carbon emissions

Manufacturers can lower their supply chain's carbon footprint by adopting renewable energy and cleaner technologies.

The EU Green Deal places a strong emphasis on social justice. For businesses, this means protecting workers throughout supply chains. On a broader level, it's about improving living conditions and access to healthy environments - both in and outside the workplace.

This CSDDD makes one thing clear: No turning a blind eye. Brands and retailers must also answer for their partners—for the way workers are treated and how business practices affect the environment.

To protect workers, suppliers must follow ethical labor practices including fair wages, safe working conditions and no forced or child labor.

To protect communities, companies must assess their environmental impact and take action to mitigate environmental harm. This means reducing carbon emissions, cutting waste, avoiding harmful chemicals in products and improving resource efficiency throughout their operations and supply chains. 

Companies should prepare to comply with CSDDD rules by 2028.

A key part of the EU Green Deal is switching to a circular economy and phasing out single-use products. Products must be reusable, repairable and recyclable, with minimal impacts on the environment — throughout their life cycles. 

Waste Management:

Legal developments like the 2021 Waste Framework Directive (WFD) have prioritized waste prevention, making it essential to consider circularity at the design stage.

Extended Producer Responsibility laws (EPRs) make brands financially responsible for the collection, sorting and recycling of garments. The laws vary by country and fall under the Waste Directive Framework and EU Strategy for Sustainable and Circular Textiles. Compliance requires companies to improve their waste management systems so more materials are repurposed rather than discarded.

To push for more circular product design, a proposed amendment to the WFD could force producers to pay for textile waste management. Approval of this proposal is expected by 2026.

The EU Green Deal promotes sustainable consumption by educating consumers and emphasizing collaboration between businesses and individuals. However, transparency is key to making this partnership work.

To build trust, counter greenwashing and empower informed decision-making, companies must disclose:

• Where materials come from
• How products are made
• What happens to products after use

Product labels, such as Digital Product Passports (DPPs), will further enhance transparency by providing clear information on materials, origin, repair options and recyclability.

The EU Chemicals Strategy prioritizes responsible chemical management with a plan to reduce toxic impacts on people and the environment while driving innovation in safer, more sustainable chemistries.

By 2030, chemical production restrictions are expected to double, including expanded bans and limitations on hazardous substances used in dyeing, processing and finished products.