By Mark Seavy 

While sustainability—from product design and development to packaging and disposal—has gained a high profile with manufacturers, how quickly they have been able to implement these strategies varies greatly around the world.  

A company’s ability to effectively execute sustainable practices across the supply chain tends to depend on how quickly those practices are adopted. This includes by the companies themselves as well as the speed at which regulations are being put in place by governing bodies. In many cases, the European Union (EU) has been faster to pass legislation than the U.S.  

For example, The EU last year started implementing a new regulation requiring that all products sold in the region feature a Digital Product Passport (DPP). The initiative is designed to enhance transparency across the supply chain by requiring disclosure of a product’s origin, material, environmental impact, and disposal recommendations. The DPP, which carries a unique product identifier, is designed to close the gap between consumer demands for transparency and the lack of reliable product data. 

The U.S. has yet to adopt DPP, but Extended Producer Responsibility (EPR) for packaging legislation (which is already in use in Europe) has been adopted in seven states, starting with Maine in 2021. EPR is designed to shift responsibility for managing packaging waste to producers, encourage sustainable practices, and increase recycling rates. It makes manufacturers responsible for the lifetime of their products, a responsibility that, in many cases, is turned over to Producer Responsibility Organizations that handle recycling and waste management aspects of the packaging.  

“Many things need to be considered when it comes to sustainability and they have to be looked at in a wholistic way,” Sandra Sierra, Director of Sustainability at Jazwares, said during a recent Licensing International webinar. “Packaging EPR legislation policies and technology are important and, to flow through an entire organization, everyone needs to understand the basics when it comes to this.” 

The need for full understanding of evolving sustainability regulations was underscored by an internal survey at Jazwares, Sierra said. While those surveyed reported they were interested in seeing the environmental impact of their products and expanding sustainability efforts, there was uncertainty in how to implement it.  

In addition to educating employees about sustainability, there is also a need to centralize the steps required in handling product returns. This is especially important because approximately 90% of returns are in working order and could be returned to retail for resale, Tony Sciarrotta, Executive Director of the Reverse Logistics Association, said during a panel discussion at the recent National Hardware Association Show. “About 40-50% of product returns are apparel and the main reason for a return is “unmet [customer] expectations,” he said.  

One answer to making a product more sustainable is resale at a reduced price, something that Home Depot and Lowe’s have adopted in the U.S. And, in Europe, Netherlands-based Intergamma (which operates 376 hardware stores under the Gamma and Karwei banners) recently installed a resale section in some locations featuring products that had been returned in working order.  

At the same time, EDRA/GHIN, a group formed from home improvement associations in France and Germany that covers 231 companies in 79 countries, has launched a “Make It Zero” campaign to support decarbonization with a goal of achieving a 90% reduction in emissions by 2050. 

“A lot of things have been tried and failed, and many people end with that mindset when it comes to sustainability,” Sierra said. “In implementing sustainability, know your information and audience and identify whether any resistance is coming from lack of knowledge or past failures. Technology is evolving every day and people need to go back and try again because your issue may have already been troubleshooted.”