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By Renee Thompson, Wesco International; Chair, SIA Environmental, Social and Governance Advisory Board
In a time where environmental awareness is increasingly prominent in global policymaking, manufacturers worldwide are encountering important regulations aimed at promoting sustainability.
Over the next three years, various key environmental and sustainability product-related regulations will be implemented, necessitating that manufacturers ensure compliance and adapt their operations accordingly.
In this article from the Security Industry Association’s Environmental, Social and Governance Advisory Board, we offer an overview of some of these regulations, as well as their jurisdictions, applicability, scope and thresholds, and share guidance for compliance and adaptation.
Global
Extended Producer Responsibility (EPR) Programs
Jurisdiction: Various global regions, including the United Kingdom, the European Union, Canada and South Korea, and U.S. states including California, Maine and Oregon, among othersApplicability: Manufacturers and producers of electronic goods, packaging, batteries and automotive productsScope: Producers are responsible for the entire life cycles of their products, including take-back, recycling and final disposalThresholds: Dependent on jurisdictionEffective Date: Dependent on jurisdiction
EPR programs require manufacturers to take greater accountability for the environmental impacts of their products throughout their life cycles, which involves not only the initial production stages, but also the collection, recycling and proper disposal of products once they reach the end of their useful life. These programs aim to incentivize producers to design more sustainable and easily recyclable products, ultimately reducing the environmental footprint of manufactured goods.
United States
Toxic Substances Control Act (TSCA)
Jurisdiction: United StatesApplicability: Manufacturers, importers and processors of chemical substancesScope: Regulation of chemical substances to ensure they do not pose unreasonable risksThresholds: Substance-specific thresholdsEffective Date: Upon completion of safety assessments and findings by the Environmental Protection Agency
The TSCA requires manufacturers to report and test chemicals used in their products. Compliance involves ensuring that all substances meet safety standards and do not pose health or environmental risks.
California Consumer Privacy Act (CCPA) – Expanding to Sustainability
Jurisdiction: California, United StatesApplicability: Companies doing business in CaliforniaScope: Disclosure of environmental impact and sustainability practicesThresholds: Companies with gross revenues exceeding $25 million or handling the data of 50,000 or more California residentsEffective Date: Jan. 1 following the calendar year in which thresholds are met
While traditionally focused on consumer privacy, the CCPA is expanding to include sustainability disclosures. Manufacturers must provide transparent information about their environmental practices and product sustainability.
European UnionEU Green Deal and Circular Economy Action Plan
Jurisdiction: European UnionApplicability: All manufacturers operating within EU member statesScope: Focus on reducing waste, promoting recycling and encouraging the use of sustainable materialsThresholds: Variable based on industry and product typeEffective Date: Based on EU member state, with key milestones set for 2025 and beyond
The European Union’s Green Deal and Circular Economy Action Plan aim to transform the EU into a resource-efficient and competitive economy. Key aspects include enhancing product durability, reparability and recyclability. Manufacturers must align with these principles to ensure market access within the EU.
EU Ecodesign and Energy Labeling Regulations
Jurisdiction: European UnionApplicability: Manufacturers of energy-related productsScope: Minimum energy performance standards and labeling requirementsThresholds: Specific energy efficiency thresholds based on product categoriesEffective Date: Varies by product category, with progressive implementation starting in 2024
These regulations require manufacturers to design products that consume less energy and provide consumers with information on energy consumption through labelling. Noncompliance can result in market exclusion and significant penalties.
UK and EU Plastic Packaging Tax
Jurisdiction: United Kingdom and European UnionApplicability: Manufacturers, importers and consumers of plastic packagingScope: Tax on plastic packaging that contains less than 30% recycled contentThresholds: Vary by country, with specific rates set for complianceEffective Dates:UK: April 2022EU:Varies by member state with key milestones starting in 2025
The Plastic Packaging Tax aims to reduce plastic waste and encourage the use of recycled materials in packaging. Manufacturers and importers must ensure that their plastic packaging meets the required recycled content thresholds to avoid taxes. Failure to comply can result in financial penalties and market restrictions. This regulation is part of a broader effort to promote sustainability and reduce the environmental impact of plastic waste within the UK and EU.
Tips for Compliance and AdaptationConduct Comprehensive Regulatory Audits
Manufacturers should regularly conduct audits to identify applicable regulations and ensure compliance. Understanding the specific requirements of each jurisdiction helps in aligning practices accordingly.
Invest in Sustainable Product Design
Adopting sustainable design principles, such as using recyclable materials and improving energy efficiency, can help manufacturers meet regulatory standards and reduce environmental impact.
Implement Robust Supply Chain Management
Ensuring that suppliers adhere to environmental regulations is crucial. Establishing stringent supply chain management practices and requiring compliance certifications from suppliers can mitigate risks.
Leverage Technology and Innovation
Utilizing advanced technologies like artificial intelligence, the Internet of Things and blockchain can enhance transparency and traceability in product life cycles, aiding in compliance and sustainability efforts.
Engage in Continuous Training and Education
Providing ongoing training for employees on environmental regulations and sustainability practices ensures that the entire organization is aligned with compliance objectives.
Finally
The global environmental and sustainability landscape is evolving rapidly, with new regulations set to come into effect over the next three years and beyond. Manufacturers must stay informed about these changes and proactively adapt their operations to ensure compliance. By embracing sustainability and leveraging innovative strategies, manufacturers can not only meet regulatory requirements, but also contribute to a more sustainable future.
Working on or through some of or all of these? Here are some resources to lend a hand.
Sustainable Fitch – ESG regulation tracker, typically updated semiannuallyCorporate Disclosures – Sustainability online news and analysisTrellis – ESG news and events
Sign up for the SIA Update Newsletter
Renee Thompson, director of global sustainability and environmental compliance at Wesco International, serves as chair of SIA’s Environmental, Social and Governance Advisory Board.
Originally published on Principal.com
At Principal®, community matters.
That means our team members help ensure prospective interns feel comfortable interviewing, support students looking to break into our fields of expertise, and mentor rising talent. Many of us consider it part of our jobs.
Senior software engineer Angela certainly does. Ahead, she shares her experiences finding her path and helping forge paths for others, too.
When did you join Principal, and what’s your role today?
In college, I interviewed for exactly two internships. One interview process was extremely intimidating. The other—at Principal—was essentially a conversation about why I was excited about tech and what I’d like to bring to the table. Clearly, I took the Principal internship.
Fifteen years later, I’m still here, on the software engineering track.
I think of myself as a full stack engineer. I do a lot of modernization: balancing the use of old tech with new, and moving into more cloud-based platforms.
What excites you about the work?
It’s thrilling to be learning something new. It’s also humbling to have been here for so long and continually be introduced to new concepts.
How else have you gotten involved at Principal?
I consider my engineering work my “day job.” Another big part of my job is working with students getting into science, technology, engineering, and mathematics [STEM].
For example, a group of us run a coding project for a STEM conference at a nearby university—specifically for girls, non-binary individuals, and allies—helping apply computer science in the context of, say, a game or fashion.
I also work with middle- and high-school students in the Principal Community Learning Center, mostly on Python. I know a few students from the program are pursuing tech professionally now.
How have you helped support others in tech at Principal?
Full circle from where I started, I co-chair our intern recruiting program. I like making sure our interview process still feels comfortable, while also helping identify potential and shaping what a successful coding program looks like.
I’m also involved in the global mentorship program. I’m on my third matchup!
And how have you been supported?
On an individual level, I’ve worked with my own mentors—especially early in my career—to navigate where to push. By that I mean going beyond “getting assignments done” to gather new information and work more proactively.
I’ve also found opportunities and support in the Global Women’s employee resource group—from book clubs to leadership training sessions to various subgroups that allowed for networking.
What’s your advice for someone looking to break into tech?
Just start. If it brings you joy and you enjoy the problem-solving of it, you’ll begin to see more patterns and get more efficient. The hardest part is just getting started.
Principal® is an Affirmative Action and Equal Opportunity Employer and an E-Verify participant. All qualified applicants will receive consideration for employment without regard to age, race, color, religion or religious creed, sex, gender, gender identity, gender expression, pregnancy, national origin, ancestry, citizenship status, mental or physical disability, medical condition, genetic information or characteristics, sexual orientation, marital status, domestic partner status, military status, protected veteran status, or any other characteristic protected by law. We also prohibit harassment on these bases.
Know your rights: Workplace discrimination is illegal (dol.gov)
If at any stage of the employment application process you need a reasonable accommodation due to a disability, contact Human Resources at MyHR@principal.com or 1-866-524-6947. Read our employment policies for more information.
Recruitment fraud is a scheme that offers fictitious job opportunities to people. This type of fraud is normally done through online services such as bogus websites, social media, or through unsolicited emails/SMS texts claiming to be from Principal or Principal employees. Only applicants who have filled out an official application on our career site (careers.principal.com) will be considered for employment opportunities. Principal will never ask for money during any stage of the employment application process. If you receive a communication (e.g., LinkedIn message, Facebook Messenger, SMS text, personal email, etc.) asking for money or personal financial information, don’t engage or respond. Please contact our Human Resources team at MyHR@principal.com or 1-866-524-6947, and your local law enforcement. For more information, review our recruitment fraud information.
You can find our U.S. workforce privacy notice here.
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