ISMR May 2026 | Page 43

on material composition and supply chain traceability. However, while the CBAM focuses on emissions at the point of import, the ESPR will specifically mandate the use of Digital Product Passports( DPPs) to host sustainability information at the product level.

Addressing them independently risks replicating compliance systems and processes e. g. requesting the same information from suppliers several times or storing the same data in multiple places. This siloed approach creates duplication, repeated supplier data requests, multiple data storage environments and increased audit risk( alongside others).

However, by considering regulatory obligations, like the ESPR and CBAM, holistically and by ensuring that data structures and verification processes used for populating DPPs can also support CBAM reporting, compliance can be streamlined and much

Image: Shutterstock. com.

Image: Shutterstock. com. more efficient. In time, this could also create a solid repository of data ready for any similar regulations that may come later.

As the CBAM moves from reporting to a tangible financial risk, businesses need to think beyond compliance in the short term and ensure that their systems are built to scale across their regulatory obligations. The more strategic path forward? If businesses treat CBAM and ESPR as part of a unified digital

compliance infrastructure, designing data architectures and verification processes that serve both certificate purchasing and Digital Product Passport requirements, compliance becomes scalable rather than reactive.

Those who take this very important step to think of it as a holistic compliance system, rather than a one-off exercise, will be best positioned to manage cost and adapt as new requirements emerge. n

Provenant’ s aim is to empower organisations to meet regulatory requirements and lead in circularity and sustainability through Digital Product Passports. Its consultancy services are focused on compliance, sustainability and circularity.

The Provenant Digital Product Passport platform is designed to enable organisations to prepare for compliance with forthcoming EU Digital Product Passport mandates, unlock circular business models and prove the provenance of their products.

www. provenant. com

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