Environmental Product Declarations (EPDs) deliver standardised, third-party verified documentation of a product's environmental effects throughout its lifecycle. These detailed reports give businesses a scientific approach to measure and communicate their environmental performance, highlighting the business benefits of EPDs. Companies can utilise this information to make analytical decisions, improve their products and develop eco-friendly solutions that meet both market needs and compliance requirements.
How EPDs Work
EPDs work through a process that gives a transparent and credible picture of environmental effects. Every EPD builds on a detailed Life Cycle Assessment (LCA) that shows how a product affects the environment over the course of their lifecycle.
- Conducting an LCA: This assessment evaluates environmental impacts, including carbon footprint, energy use, water consumption and waste generation across all stages of the product's lifecycle—from raw material extraction to disposal.
- Using Product Category Rules (PCRs): These are industry-specific guidelines that ensure uniformity in EPDs across similar products, enabling fair comparison.
- Verification and Publication: A third-party verifier authenticates the data, after which the EPD is published in a public database for transparency. Third-party verification plays a vital role in quality control. Verifiers look at both environmental data accuracy and how well the reporting follows required procedures.
By adopting EPDs, businesses can align with international standards like ISO 14025 and EN 15804, gaining credibility in sustainability-focused markets.
Read More: Obtaining an Environmental Product Declaration | Tunley Environmental
Benefits of EPDs for Businesses
The business benefits of EPDs extend beyond environmental responsibility, offering valuable insights that could potentially influence product innovation, improve market competitiveness and ensure alignment with sustainability standards.
- Regulatory Compliance
Governments worldwide are implementing stricter environmental laws of which EPDs represent a significant compliance advantage. In particular, these declarations bring special value for construction companies, with nearly 70% of global and European green building standards giving extra points for materials that have EPDs. Major systems like Building Research Establishment Environmental Assessment Method (BREEAM) and Leadership in Energy and Environmental Design (LEED) recognise these declarations, which helps companies enter new markets. With the upcoming EU Green Claims Directive set to take effect by 2026, companies utilising EPDs are well-positioned to demonstrate compliance and maintain market access. - Improved Brand Image
EPDs deliver substantial value to an organisation’s image, making them an essential tool for modern enterprises. Recent studies indicate that 75% of consumers consider trust as a crucial factor in decision making for essential purchases. This highlights the importance of transparent environmental documentation for their products as it could possibly influence customers who are particular about sustainability. - Competitive Advantage
Organisations implementing EPDs have significant advantages in market positioning and gain a competitive edge. The verification represents quality and demonstrates rigorous verification processes. - Supply Chain Insights
From an operational perspective, EPDs enable businesses to identify inefficiencies and enhance innovation through comprehensive LCAs. The EPD process identifies environmental shortcomings across supply chains, enabling better resource allocation and cost reductions. - Access to Sustainable Financing
Regulations like the FCA's Anti-Greenwashing Rule (UK) and the EU's Sustainable Finance Disclosure Regulation (SFDR) indicates the increasing pressure for participants in the financial markets to invest in more environmentally friendly businesses. Investors increasingly favour companies with verified environmental credentials. EPDs can help secure green bonds or ESG-focused funding.
Measuring EPD Impacts on Business Performance
The effectiveness of EPDs can be assessed through:
- Sales Growth: Comparing sales data pre- and post-EPD implementation.
- Market Penetration: Tracking entry into markets requiring EPD compliance.
- Operational Efficiency: Monitoring reductions in energy, water and material use.
- Customer Engagement: Evaluating consumer feedback and brand sentiment.
Example Table: Metrics to Measure EPD Impact
|
Metric |
Before EPDs |
After EPDs |
Improvement (%) |
|
Sales Growth |
$1M |
$1.2M |
20% |
|
Energy Consumption (kWh) |
100,000 |
85,000 |
15% |
|
New Market Penetration |
2 markets |
4 markets |
100% |
The Bottom Line
EPDs give companies reliable, standardised documentation to show their dedication to sustainability. They work especially well for construction and manufacturing businesses with studies show they help win contracts, follow regulations, and earn respected certifications like LEED and BREEAM. By highlighting the business benefits of Environmental Product Declarations, companies can track both immediate savings and long-term gains through this systematic framework.