The Environmental Product Declaration, or EPD for short, is increasingly becoming a strategic tool. What began in the construction industry is now reaching upstream sectors – above all the chemical industry. Here in particular, EPDs increase visibility in the market and significantly contribute to competitiveness. In this article, you will learn why chemical companies in Germany and across Europe are increasingly engaging with EPDs — and how they can benefit from forward-looking action.
| |
What is an EPD – and why is it relevant?
An EPD refers to a standardised environmental profile of a product. It is based on a life cycle assessment (LCA) and describes the environmental impacts throughout the entire product life cycle in an objective and transparent form – from raw material extraction to production and use to disposal. Unlike the Product Carbon Footprint (PCF), an EPD considers not only CO2 emissions, but also other environmental factors such as energy and water consumption, the ozone depletion potential or recyclability. The modular structure of EPDs makes it possible to aggregate the environmental impacts of products at a higher level, e.g. to evaluate entire buildings. EPDs are created in accordance with international standards such as EN 15804, ISO 14040/44 and ISO 14025, verified by independent bodies and published via acknowledged EPD programmes.
|
|
Why the construction industry is already using EPDs
EPDs have increasingly become standard practice in many areas of the construction industry in Germany and Europe, particularly where they play a central role in tenders and building certifications (e.g. DGNB, LEED, QNG) — supporting product comparisons, sustainability assessments and funding applications.
With the new Construction Products Regulation (CPR 2024/3110) entering into force on 7 January 2025, mandatory environmental indicators for the marketing of construction products in the EU will be introduced in stages.
EPDs serve as a transparent and standardised source of information for industrial customers, architects, builders, authorities and certification bodies. However, the demand for EPDs does not end with the finished product: it is increasingly shifting to upstream industries along the entire value chain.
EPDs are moving into focus for the chemical industry
The chemical industry supplies essential precursors for almost all industries – from plastics and paints to adhesives. If customers in the construction industry require EPDs, they need to be aware of the environmental profiles of their products. This means that suppliers in the chemical industry are increasingly asked to provide transparent environmental information in order to remain competitive.
This market pressure is also putting companies under strain that have not yet created EPDs. Those who take early action, however, can position themselves as sustainable partners and open up new market opportunities.
Strategic benefits for chemical companies
EPDs offer a range of strategic opportunities:
✔ Competitive advantage: Companies with EPDs are better positioned to meet the expectations of sustainability-driven customers.
✔ Process optimisation: Creating an EPD promotes the analysis and optimisation of production processes.
✔ Compliance: The EU Taxonomy, the Corporate Sustainability Due Diligence Directive (CSDDD), and the Construction Products Regulation all demand greater environmental transparency.
✔ Transparency: Verified results enhance credibility and thus the trust of stakeholders and investors.
✔ Option for verified PCF: Companies can also obtain a verified Product Carbon Footprint (PCF) based on the EPD results.
EPDs in practice: challenges and solutions
Preparing an EPD is complex and demanding: it requires extensive data on raw materials, manufacturing processes, transport routes, usage and disposal. The requirements and environmental impacts covered by an EPD go beyond industry standards such as the Together for Sustainability (TfS) PCF Guideline. Many chemical companies face the challenge of not yet having the necessary data infrastructure or internal expertise to develop EPDs independently. Partnerships with LCA service providers, industry associations or digital platforms can provide targeted support in this area.
Another approach is the use of EPD groupings: instead of creating a separate EPD for each product, companies can develop EPDs based on product groups to reduce the effort involved and speed up the process.
Conclusion: Act now – before the pressure increases
What started as a market requirement in the construction industry is increasingly becoming the norm across the entire value chain.
Pressure from downstream industries is growing, and so are regulatory requirements. Chemical companies that invest in EPDs today not only secure their competitive position, but also actively shape the industry’s transformation. At the same time, they strengthen the trust of customers and partners.
Our sustainability experts will support you in identifying the right approach for your organisation, aligning with relevant requirements and standards – and guide you through the creation of your EPD(s). Feel free to get in touch with us.
EurA AG
T- 079619256-0Max-Eyth-Straße 2
73479 Ellwangen
info@eura-ag.com