A R T I C L E
Navigating Regulatory Compliance in the Consumer Goods Industry
By Dayrize
For brands and retailers with large product ranges, regulatory compliance is becoming increasingly important. But as things stand today, sustainability regulations are somewhat of a minefield. Many businesses are unsure where to start, and need help with understanding regulation requirements. In this article, we’re going to share some insights into sustainability in the consumer goods industry, explore the compliance challenges we’re seeing in the market, and show how Dayrize sustainability intelligence can help.
What Does Dayrize Do?
The Dayrize software helps companies set, measure, and track the environmental and social impact of the products they make and sell. Our proprietary technology enables companies to do this at scale, even when data is missing or incomplete.
Additionally, Dayrize supports companies with setting a baseline measurement of individual product impact and mapping out tangible steps to achieve their sustainability goals (we call them ‘Destinations’). One of these Destinations is ensuring companies are compliant with current and upcoming regulations.
Because we provide a holistic impact measurement of products across five dimensions of sustainability - Circularity, Climate Change, Ecosystem Impact, Livelihoods & Wellbeing, and Purpose - companies don’t need to change their environmental and social impact software when regulations or Destinations change, future proofing the process.
How Is Sustainability Affecting The Consumer Goods Sector?
Currently, we are seeing the following trends related to sustainability among consumer goods businesses:
”The era of impact transparency has arrived” shares Dayrize CEO Austin Simms on the topic of regulations. “As the regulatory landscape continues to evolve, it will create confusion for companies until the frameworks become more established. But companies need to act now to ensure they are not left behind.”
When it comes to meeting sustainability targets, not many companies are on-track to achieve their ambitions. 93% of the more than 2,000 companies that have Net Zero goals are predicted to fail to achieve them (Reuters).
It’s not all bad news, though. Technology solutions are increasingly empowering companies to reach their sustainability Destinations, including regulatory compliance.
The Key Challenges With Regulatory Compliance
Looking at regulatory compliance, there are a few key challenges. Setting cross-industry sustainability regulations is difficult given there is a wide range of views about the definition of sustainability and therefore what should be covered by regulations. As such, regulators walk a tightrope. If the regulations are too extreme, they will be difficult for companies to follow. If they are too lax, then they will fail to create the meaningful change that is required to meet the needs of our planet.
Meanwhile, confusion around the evolving regulatory landscape cannot be understated. Consider for example the European Union. Given the nature of the way things are structured wherein there are regulations at both the country level and union level, it can be unclear for companies which regulations take precedence, as well as their timing and scope.
Additionally, companies are struggling with regulatory compliance on an operational level. Does it sit with the sustainability team? The finance team? Determining how to embed regulatory compliance within a company’s organization can be a challenge.
Our Vision For Regulatory Compliance
As a leader in environmental and social impact measurement for consumer products, our vision at Dayrize is to provide fully-automated impact measurement that companies can use as part of their regulatory reporting. Within the Dayrize dashboard, clients can produce reports on their products and categories relating to a range of goals and regulations. Our software provides an automated result based on the selected reporting framework. This takes away the ongoing need to stay up-to-date with regulations.
Dayrize supports consumer goods companies with a range of regulations including CSRD, CSDD, SEC, TNFD, PEF, the Uyghurs Forced Labour Act, and the Deforestation Act. Among these, CSRD or the Corporate Sustainability Reporting Directive, is top-of-mind for many of our customers.
“At Dayrize, our purpose is to help companies bring consumption and production with planetary and societal boundaries” Simms says. “Providing automated regulatory reporting for our clients brings us one step closer to achieving our mission.”
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If you’d like to learn more about how Dayrize can help your company achieve regulatory compliance and any other sustainability goals, get in touch today.
What Does Dayrize Do?
The Dayrize software helps companies set, measure, and track the environmental and social impact of the products they make and sell. Our proprietary technology enables companies to do this at scale, even when data is missing or incomplete.
Additionally, Dayrize supports companies with setting a baseline measurement of individual product impact and mapping out tangible steps to achieve their sustainability goals (we call them ‘Destinations’). One of these Destinations is ensuring companies are compliant with current and upcoming regulations.
Because we provide a holistic impact measurement of products across five dimensions of sustainability - Circularity, Climate Change, Ecosystem Impact, Livelihoods & Wellbeing, and Purpose - companies don’t need to change their environmental and social impact software when regulations or Destinations change, future proofing the process.
How Is Sustainability Affecting The Consumer Goods Sector?
Currently, we are seeing the following trends related to sustainability among consumer goods businesses:
- Confusion about the evolving and increasing regulatory landscape
- Concern around how to meet publicly declared sustainability targets (e.g. Net Zero by 2040)
- Demand for technology solutions to automate sustainability processes (e.g. supply train tracking)
”The era of impact transparency has arrived” shares Dayrize CEO Austin Simms on the topic of regulations. “As the regulatory landscape continues to evolve, it will create confusion for companies until the frameworks become more established. But companies need to act now to ensure they are not left behind.”
When it comes to meeting sustainability targets, not many companies are on-track to achieve their ambitions. 93% of the more than 2,000 companies that have Net Zero goals are predicted to fail to achieve them (Reuters).
It’s not all bad news, though. Technology solutions are increasingly empowering companies to reach their sustainability Destinations, including regulatory compliance.
The Key Challenges With Regulatory Compliance
Looking at regulatory compliance, there are a few key challenges. Setting cross-industry sustainability regulations is difficult given there is a wide range of views about the definition of sustainability and therefore what should be covered by regulations. As such, regulators walk a tightrope. If the regulations are too extreme, they will be difficult for companies to follow. If they are too lax, then they will fail to create the meaningful change that is required to meet the needs of our planet.
Meanwhile, confusion around the evolving regulatory landscape cannot be understated. Consider for example the European Union. Given the nature of the way things are structured wherein there are regulations at both the country level and union level, it can be unclear for companies which regulations take precedence, as well as their timing and scope.
Additionally, companies are struggling with regulatory compliance on an operational level. Does it sit with the sustainability team? The finance team? Determining how to embed regulatory compliance within a company’s organization can be a challenge.
Our Vision For Regulatory Compliance
As a leader in environmental and social impact measurement for consumer products, our vision at Dayrize is to provide fully-automated impact measurement that companies can use as part of their regulatory reporting. Within the Dayrize dashboard, clients can produce reports on their products and categories relating to a range of goals and regulations. Our software provides an automated result based on the selected reporting framework. This takes away the ongoing need to stay up-to-date with regulations.
Dayrize supports consumer goods companies with a range of regulations including CSRD, CSDD, SEC, TNFD, PEF, the Uyghurs Forced Labour Act, and the Deforestation Act. Among these, CSRD or the Corporate Sustainability Reporting Directive, is top-of-mind for many of our customers.
“At Dayrize, our purpose is to help companies bring consumption and production with planetary and societal boundaries” Simms says. “Providing automated regulatory reporting for our clients brings us one step closer to achieving our mission.”
***
If you’d like to learn more about how Dayrize can help your company achieve regulatory compliance and any other sustainability goals, get in touch today.