THE EPD PLAYBOOK

Before we delve into what an Environmental Product Declaration (EPD) is in detail, let’s look at the frameworks around it. 

Environmental declarations are classified into three types according to ISO standards: Type I, Type II, and Type III. Each type has different characteristics and purposes in terms of environmental labeling and declarations. Each type serves different needs and audiences, from providing simple consumer guidance (Type I) to offering detailed environmental information for more informed decision-making (Type III). 

Here’s a breakdown of the differences: 

Type I: Ecolabels  

Standard: 

• ISO 14024  

Characteristics:   

• Third-party Certified: Type I labels are verified by independent third parties to ensure that the product meets specific environmental criteria.  

• Multi-criteria: These labels consider multiple environmental factors, such as resource use, emissions, and waste, throughout the product’s lifecycle.  

• Voluntary: Participation in ecolabel programs is typically voluntary, and products must meet a set of predefined criteria to earn the label.  

Purpose:  

• To provide a simple, recognizable symbol that helps consumers identify products with superior environmental performance.  

Examples:  

• Energy Star, Blue Angel, Nordic Swan, and EU Ecolabel. 

 

Type II: Self-declared Environmental Claims  

Standard:   

• ISO 14021  

Characteristics:  

• Self-declared: These claims are made by manufacturers or retailers themselves without third-party verification.  

• Single-attribute Focus: Often focus on a single environmental attribute, such as “recyclable” or “biodegradable.”  

• Regulation by Standards: While not third-party verified, these claims must comply with established guidelines to ensure accuracy and prevent misleading information.  

Purpose: 

• To allow companies to communicate specific environmental benefits of their products directly to consumers.  

Examples:  

• Claims like “100% recycled content” or “non-toxic.” 

 

Type III: Environmental Product Declarations (EPDs) 

Standard:  

• ISO 14025  

Characteristics:  

• Third-party Verified: Like Type I, Type III declarations require third-party verification but are more focused on transparency rather than providing a simplified label.  

• Quantitative Data: Provide detailed, quantified environmental data based on a comprehensive life cycle assessment (LCA).  

• No Environmental Rating: Unlike Type I labels, Type III declarations do not evaluate or rate the environmental performance of a product.  

Purpose:   

• To provide comprehensive and comparable environmental data to facilitate informed decision-making by businesses and consumers. 

Examples:  

• EPDs for construction materials, electronics, and consumer goods, providing detailed lifecycle environmental impact information.

 

“An EPD, in many respects, functions as the most effective marketing tool a company can have. It not only shows a willingness to engage with evolving regulations, but also demonstrates a broader awareness of market pressures and consumer demands and the need to act accordingly.”

 

What is an EPD?

In the simplest terms, an EPD helps people understand the impact a product has on the environment, from when it’s made to when it’s thrown away. Let’s assume that we’re talking about a crane. In this example, an EPD functions almost as a report card for that crane (or for any product). It’ll tell you: 

1. Materials Used: It shows what the crane is made of, like metal or plastic.  
2. Energy: It tells you how much energy was used to make the crane, like electricity or fuel.  
3. Pollution: It explains if making the crane creates pollution, like smoke or chemicals, and how much.  
4. Recycling: It mentions what happens to the crane when you’re done with it. Can it be recycled, or are the materials used unrecyclable? 
5. Water: It shows how much water was used to make the crane. 

Creating an EPD isn’t defined by set time limits. The process can take anywhere from a few months to well over a year, depending on several factors, including: 

• Data collection and the complexity of the product itself 

• Conducting a Life Cycle Assessment (LCA) 

• Documentation, review and verification of the findings 

• Ensuring adherence with standards and guidelines 

• Revisions and final approval before publishing the EPD 

It’s worth noting that industries – or companies – with well-established processes, experienced teams, or access to a solution like Makersite can complete EPDs more quickly. The process can be streamlined with a combination of efficient data management and experienced personnel, but the need for thoroughness and accuracy still remains. 

While not universally required, EPDs are increasingly becoming a valuable tool for companies across various industries to communicate their environmental performance. They help meet regulatory standards, satisfy market demands, and support sustainability goals. 

An EPD, in many respects, functions as the most effective marketing tool a company can have. It not only shows a willingness to engage with evolving regulations, but also demonstrates a broader awareness of market pressures and consumer demands and the need to act accordingly. 

EPDs are a powerful tool for promoting environmental responsibility, transparency, and innovation, as well as supporting green procurement. Companies that produce EPDs not only contribute positively to sustainability efforts but also gain a competitive edge in the marketplace. 

Although EPDs are not yet mandatory in certain regions and certain industries, their relevance nonetheless depends on a variety of factors: 

1. Regulatory Requirements:  

• Voluntary vs. Mandatory: In most cases, EPDs are voluntary and are used by companies to demonstrate environmental responsibility and transparency.  

• Industry Regulations: Some industries, particularly in construction and building materials, may have specific regulations or incentives encouraging the use of EPDs.  

2. Market Demand:  

• Customer Expectations: In sectors where consumers are increasingly concerned about sustainability, such as consumer goods, electronics, and automotive, companies may choose to create EPDs to meet customer expectations and differentiate their products.  

• Green Building Standards: For example, the construction industry often uses EPDs to comply with green building standards such as LEED or BREEAM, which encourage or require EPDs to earn certification points.  

3. Industry Standards:  

• Voluntary Programs: Some industries have voluntary programs or certifications that promote the use of EPDs to highlight sustainability efforts.  

• Competitive Advantage: Companies may produce EPDs to gain a competitive edge by showcasing the environmental impact of their products.  

4. Government Incentives:  

• Some governments offer incentives or subsidies for companies that produce EPDs as part of broader sustainability initiatives.  

5. Corporate Sustainability Goals:  

• Companies with strong corporate social responsibility (CSR) commitments or sustainability goals may choose to create EPDs as part of their overall strategy to reduce environmental impact. 

In a business landscape increasingly underpinned by sustainable principles, EPDs are a valuable tool for companies across various industries to communicate their environmental performance. 

EPDs offer a number of strategic advantages to organizations. They provide increased transparency in the supply chain, enable improved decision-making and help companies to optimize resource use and manage risks. Proactive engagement with the EPD process allows companies to build a sustainable competitive advantage and align with the growing demand for environmental responsibility. 

A lack of action, however, has numerous downsides. Let’s take a look at a few: 

Loss of Market Competitiveness 

Companies that do not provide EPDs may struggle to compete with those that do, as customers increasingly demand transparency in environmental impact. 

Increased Regulatory Compliance Risk 

Not having an EPD might lead to difficulties in meeting current or future regulations that mandate environmental disclosures or sustainable practices. 

Reduced Access to Green Building Projects 

EPDs are often required for certification in green building projects (e.g., LEED, BREEAM). Without an EPD, companies may miss out on these opportunities. 

Damage to Brand Reputation 

Consumers and businesses are increasingly aware of environmental issues. Failure to provide an EPD could harm the brand’s image as environmentally responsible. 

Limited Understanding of True Environmental Impacts 

Without an EPD, companies may lack a clear understanding of the environmental impacts of their products, hindering efforts to improve sustainability. 

Missed Opportunities for Cost Savings 

EPDs often reveal inefficiencies in production processes. Without this insight, companies might miss opportunities to reduce costs through more sustainable practices. 

Difficulty in Meeting Customer Demands 

Many customers, especially large corporations and governments, now require EPDs for procurement. Not having an EPD can result in lost business opportunities. 

Lack of Benchmarking and Improvement 

EPDs allow companies to benchmark their products against competitors. Without this, companies may find it challenging to set and achieve sustainability goals. 

Increased Risk of Greenwashing Accusations 

Without verified environmental data provided by an EPD, companies risk being accused of greenwashing, damaging trust and credibility. 

Hindered Innovation 

EPDs often drive innovation by highlighting areas for improvement. Without this data, companies may struggle to innovate effectively in sustainability. 

Potential Financial Penalties 

In some regions, lack of transparency regarding environmental impacts can lead to financial penalties or exclusion from certain markets. 

Loss of Stakeholder Trust 

Investors, partners, and other stakeholders are increasingly prioritizing sustainability. Not having an EPD might erode trust and weaken relationships. 

Increased Environmental Impact 

Without the insights provided by an EPD, companies might inadvertently contribute to greater environmental harm, which can have long-term consequences. 

An ability to effectively and efficiently conduct EPDs at scale is an essential differentiator between companies seeking to move forward on sustainability in a highly competitive marketplace. Not implementing EPD best practices not only leads to missed market opportunities and operational inefficiencies, but likely also to increased compliance costs, weaker supplier relationships and greater supply chain vulnerabilities.

The importance of selecting the right program operator or supporting solution for EPDs is paramount. At a time when rapid action – without impacting the necessary thoroughness and rigour of the EPD process – can give organizations a valuable lead in a competitive marketplace, finding a solution that can speed up the process and take all the necessary steps within a single platform is crucial. 

 A tool like Makersite is designed to streamline and enhance the creation and management of Environmental Product Declarations (EPDs) through pre-verification, end-to-end automation, and the use of AI and deep data integration. Makersite’s one model, multi-output approach enables you to integrate multiple data sources and easily deliver reporting and analytics to multiple teams including compliance reports, EPDs, PCFs, Scope 1,2 & 3, forecasts and should costs. 

Our platform significantly reduces the time required to conduct LCAs and generate EPDs, transforming a process that traditionally took months into one that can be completed in minutes. The platform enables the mapping and enhancement of product data with materials, substances, and supply chain information. This ensures that all relevant environmental impacts are considered, leading to more accurate and reliable EPDs.

“Makersite’s one model, multi-output approach enables you to integrate multiple data sources and easily deliver reporting and analytics to multiple teams including compliance reports, EPDs, PCFs, Scope 1,2 & 3, forecasts and should costs.”

More broadly, there are a number of companies across Europe and North America who offer EPD assistance and related services in a market that is continuing to grow at pace. Options include: 

Sphera

Sphera’s GaBi software helps companies streamline the EPD process by offering a robust database and tools to model the environmental impact of products across their life cycle. They also provide verification and certification services for EPDs. 

EPD International 

EPD International offers a platform for registering and publishing EPDs, making it easier for companies to comply with European regulations and meet market demands. They also facilitate third-party verification of EPDs. 

BRE Global 

BRE Global offers expertise in creating EPDs that align with BREEAM certification requirements, making it easier for construction products to be integrated into sustainable building projects. 

One Click LCA 

Their platform automates the EPD creation process by pulling in data from existing models and databases, thus reducing the time and cost associated with producing EPDs. 

Sustainable Minds 

Sustainable Minds simplifies the EPD process by providing tools that integrate LCA data with marketing and product development workflows, enabling companies to create and communicate EPDs more effectively 

UL Environment 

UL Environment helps companies in North America develop and certify EPDs in line with ISO 14025. Their certification and database listing enhance the credibility and market acceptance of EPDs. 

Organizations looking for an EPD solution should ideally look for a platform that is able to provide an end-to-end solution, covering every step of the EPD process, from data collection to LCA modeling, EPD creation, and certification. At a time when the ability to act with speed is an imperative, seek out solutions that help to – via automation, AI, and specialized software – reduce the time and cost associated with developing EPDs whilst not neglecting crucial areas of regulatory compliance. 

Let’s run through a hypothetical scenario in which the use of EPDs leads to positive gains and meaningful progress across a number of key business areas:

Company Overview

EcoBuild Construction Ltd. is a mid-sized construction company based in Europe, specializing in residential and commercial building projects. With a growing emphasis on sustainability in the industry, EcoBuild decided to differentiate itself by prioritizing environmental responsibility in its operations.  

Challenge

EcoBuild faced increasing pressure from clients, particularly large corporations and government bodies, to demonstrate the environmental impacts of their buildings. Competitors who were offering certified green buildings with transparent environmental data were gaining an edge in the market. To address this, EcoBuild decided to conduct Environmental Product Declarations (EPDs) for their key building projects. 

Action

EcoBuild partnered with a third-party certification body to perform LCAs on the materials and processes used in their construction projects. They compiled the data into EPDs for their most significant building materials and entire buildings, including concrete, steel, insulation, and glazing.  

Implementation

 

1. Data Collection: EcoBuild gathered detailed data on the sourcing, manufacturing, transportation, usage, and end-of-life disposal of the materials used in their buildings.  

1. LCA and EPD Development: The LCA provided a comprehensive assessment of each product’s environmental impacts across its life cycle, including global warming potential, energy consumption, water usage, and waste generation. This information was compiled into EPDs, which were then verified by an independent third party.  

1. Integration into Projects: EcoBuild integrated the EPDs into their project documentation, using them to inform design decisions, optimize material selection, and reduce the overall environmental footprint of their buildings.  

Benefits and Outcomes

 

Enhanced Market Competitiveness:  

• Increased Project Wins: By offering EPDs, EcoBuild won contracts with large corporations and public sector clients who required sustainability certifications, such as LEED or BREEAM, which heavily consider EPDs in their scoring systems.  

• Market Differentiation: EcoBuild successfully differentiated itself from competitors by positioning its buildings as environmentally superior, attracting environmentally conscious clients and investors.  

 Cost Savings and Efficiency Gains:  

• Optimized Material Use: The EPD process revealed that certain materials had a disproportionately high environmental impact. EcoBuild replaced these with more sustainable alternatives, reducing material costs and improving environmental performance.  

• Energy Efficiency: The data from EPDs highlighted opportunities to improve energy efficiency in buildings, leading to reduced operational costs for clients and long-term savings.  

 Improved Regulatory Compliance

• Ahead of Regulations: By conducting EPDs, EcoBuild stayed ahead of evolving environmental regulations. They were fully compliant with new requirements for environmental transparency, avoiding potential fines and project delays.  
• Incentives and Subsidies: EcoBuild became eligible for government incentives and subsidies available to companies that demonstrated environmental leadership through verified EPDs.  

Positive Brand Reputation and Trust 

• Strengthened Relationships: The transparency provided by the EPDs built trust with stakeholders, including clients, investors, and the local community, enhancing EcoBuild’s brand reputation.  

• Industry Recognition: EcoBuild received industry awards for sustainability and innovation, further bolstering its reputation as a leader in green building.  

 Innovation and Continuous Improvement

• Sustainable Design Innovation: The insights from the EPDs spurred innovation in building design, leading to the development of new, more sustainable construction methods and materials.  

• Continuous Improvement: EcoBuild used the EPDs to set benchmarks and track progress over time, continually improving the sustainability of their buildings.  

Increased Client Satisfaction and Retention

• Client Satisfaction: Clients appreciated the transparency and the environmental benefits of EcoBuild’s projects, leading to higher satisfaction rates and repeat business.  

• Long-term Relationships: The company forged long-term relationships with key clients who valued sustainability, securing a steady pipeline of projects.  

Outcome

EcoBuild Construction Ltd. not only enhanced its market position but also achieved significant cost savings, improved compliance with regulations, and fostered innovation. The company established itself as a leader in sustainable building practices, creating a competitive advantage that attracted new clients and retained existing ones, while contributing positively to the environment. 

As we’ve showcased in the hypothetical case study above, the EPD process can have numerous benefits when it comes to taking your organization to the next level.  At a time when even marginal gains can have an enormous impact in the market, doing everything you can as a business to take steps forward is essential. 

Accordingly, let’s run through some of the opportunities that are likely to arise as a result of carrying out EPDs at pace and in detail. The benefits of being proactive and acting now include: 

 

Meeting Consumer Demand: 

• Growing Awareness: Consumers are increasingly aware of environmental issues and prefer products with verified environmental information. EPDs help meet this demand by providing transparent, standardized environmental data. 

• Brand Loyalty: Companies that demonstrate a commitment to sustainability can build stronger relationships with environmentally conscious consumers, enhancing brand loyalty and reputation. 

Regulatory Compliance: 

• Proactive Compliance: Environmental regulations are becoming stricter globally. Having EPDs ready can help companies comply with current and future regulations, avoiding penalties and ensuring smooth market access. 

• Preparation for Change: By adopting EPDs now, companies are better prepared for any sudden regulatory shifts that may require rapid adaptation. 

Market Differentiation: 

• Competitive Edge: EPDs differentiate products in the marketplace by showcasing their environmental credentials. This can lead to a competitive advantage, particularly in sectors where sustainability is a key purchasing criterion. 

• Innovation Leadership: Early adoption of EPDs positions a company as a leader in sustainability, attracting like-minded partners and customers. 

Operational Efficiency: 

• Resource Optimization: EPDs provide insights into the environmental impacts of production processes, allowing companies to identify inefficiencies and reduce waste. 

• Cost Savings: Improved resource use and waste reduction lead to cost savings and increased profitability. 

Supply Chain Collaboration: 

• Stronger Partnerships: EPDs encourage collaboration with suppliers to improve environmental performance, leading to stronger and more resilient supply chains. 

• Shared Sustainability Goals: Working with suppliers on sustainability initiatives fosters alignment on environmental objectives. 

Contribution to the Circular Economy: 

• Lifecycle Thinking: EPDs encourage companies to adopt a lifecycle approach, supporting circular economy practices such as recycling and reuse. 

• Material Recovery: Detailed information on material composition and recyclability helps facilitate material recovery and circularity. 

Providing verified environmental data through an EPD builds trust with customers, stakeholders, and the public, enhancing the company’s credibility. Ultimately, companies that invest in EPDs position themselves as leaders in sustainability, gaining a long-term strategic advantage as markets increasingly prioritize environmental performance. 

However, successfully executing your EPD strategy requires time, diligence and a good amount of foresight. Below, we’ve put together a table that outlines the key steps you need to take, the preparation needed, and a timeline in which to do it. 

Many organizations realize the importance of sustainability best practices, and the arguments are getting easier and easier to make. However, it’s still worth being prepared before you take your proposition to the top table. 

Making a compelling business case for implementing a more structured approach to conducting EPDs in your organization involves clearly communicating the benefits, aligning with the company’s strategic goals, and addressing potential concerns. 

Here’s how we suggest you put the business case forward:  

Understand the Audience 

• Executive Team: Focus on strategic benefits like market differentiation, regulatory compliance, and long-term cost savings. 

• Finance Team: Emphasize cost efficiencies, potential ROI, and risk mitigation. 

• Marketing/Sales Team: Highlight market opportunities, customer demand, and brand enhancement. 

• Sustainability/CSR Team: Link EPDs to sustainability goals and corporate social responsibility. Frame the Business Case  

• Context and Challenge: 

• Start by explaining the growing demand for environmental transparency from customers, regulators, and stakeholders. 

• Highlight how competitors are using EPDs to gain market share and how regulations are increasingly favoring environmentally transparent products. 

• Strategic Alignment: 

• Align EPDs with the organization’s strategic goals, such as enhancing market competitiveness, innovation, sustainability, and customer satisfaction. 

• Show how EPDs support compliance with upcoming regulations and standards, reducing the risk of penalties or market exclusion. 

Present the Benefits 

• Market Competitiveness: 

• Demonstrate how EPDs can differentiate your products in a crowded market, attracting environmentally conscious customers and clients. 

• Highlight potential for winning more contracts, especially in sectors like green building where EPDs are often required. 

• Regulatory Compliance and Risk Management: 

• Explain how EPDs can help the organization stay ahead of regulatory changes, ensuring compliance and avoiding potential fines or project delays. 

• Discuss how EPDs contribute to better risk management by providing detailed insights into environmental impacts, enabling more informed decision-making. 

• Cost Savings and Efficiency: 

• Illustrate how the process of developing EPDs can identify inefficiencies in production, leading to cost savings. 

• Provide examples of how EPDs can reveal opportunities for material substitutions that reduce environmental impact and costs. 

• Innovation and Continuous Improvement: 

• Emphasize how EPDs can drive product and process innovation by highlighting areas for environmental improvement. 

• Discuss how benchmarking against industry standards can spur continuous improvement and maintain the company’s competitive edge. 

• Brand Enhancement and Stakeholder Trust: 

• Show how EPDs can enhance the company’s brand by demonstrating a commitment to sustainability, which can attract customers, investors, and top talent. 

• Discuss how transparency through EPDs can build trust with stakeholders, leading to stronger relationships and customer loyalty. 

 Address Potential Concerns 

• Cost and Resource Allocation: 

• Break down the costs associated with developing EPDs and compare them to the potential return on investment. 

• Highlight how the long-term savings and market opportunities can outweigh the initial investment. 

• Implementation Challenges: 

• Acknowledge potential challenges in gathering data and implementing EPDs, but provide solutions such as phased implementation or partnering with experienced third-party organizations. 

• Emphasize the availability of tools and resources that can streamline the EPD process. 

• Risk of Inaction: 

• Present the risks of not implementing EPDs, such as losing market share, failing to comply with regulations, and missing out on sustainability-driven growth opportunities. 

Provide Evidence and Case Studies 

• Share examples of competitors or similar companies that have successfully implemented EPDs and the benefits they’ve realized. 

• Use data to demonstrate the growing market demand for environmentally transparent products and the financial implications of meeting this demand. 

Propose a Plan 

• Pilot Project: Suggest starting with a pilot project to develop EPDs for a select product line or material. This can serve as a proof of concept, demonstrating the benefits before full-scale implementation. 

• Timeline and Milestones: Provide a clear timeline for developing and implementing EPDs, with key milestones and deliverables. 

• Metrics for Success: Define how success will be measured, such as increased sales, cost savings, improved compliance, or enhanced customer satisfaction. 

Conclusion 

• Recap the strategic importance of EPDs and how they align with the organization’s goals. 

• Emphasize that implementing EPDs is not just a regulatory or market-driven necessity but also a strategic opportunity to lead in sustainability and innovation. 

For any organization seeking to make gains in a challenging and competitive business landscape, EPDs are a valuable investment that will benefit the organization across multiple dimensions, from market positioning to operational efficiency to long-term sustainability. With the right collaboration across teams and the right solution onboard to simplify the processes involved, a company will be able to more than effectively manage its EPD obligations, from planning and budgeting to execution and compliance.