Get ready or get left behind – transparency is no longer optional

Over the next two years, the world of sustainability is entering a new phase - one defined by heavy regulation, mandatory transparency, and real consequences for those who fall short.

Brands and retailers can no longer afford to take a passive approach. To avoid misleading claims and accusations of greenwashing, companies must invest in the tools and systems that enable them to be fully transparent about their environmental and social impact

The compliance crunch: what’s changing?

From mandatory on-pack labeling to digital product passports, the landscape is evolving fast.

Sustainability compliance - meeting legal obligations aimed at reducing environmental harm and improving social outcomes - has quickly become a boardroom priority. And it’s not just about ticking boxes. It’s about protecting your brand, your margins, and your market position.

The biggest barriers to meeting new sustainability laws

Here’s what’s standing in the way - and what businesses can do about it:

    1. Keeping up with regulatory change

With so many new rules rolling out across regions, it’s vital to stay informed, especially if you're trading in multiple markets like the EU, the UK, or Ireland.

⚠️ Pro tip: Assign a dedicated team or consultant to track and interpret sustainability laws in your supply chain.

    2. Limited internal resources

Small and medium-sized businesses may lack the capacity to build these systems in-house. This is where AI-driven tools and external compliance experts come in handy, helping with data collection, reporting, and audit readiness.

    3. Managing the cost

Let’s be real: transparency isn't cheap. But non-compliance is even more expensive - think fines, lawsuits, and reputational damage. Building compliance into your budget is now a smart business move, not a nice-to-have.

More stick than carrot - and that’s the point

Regulators are cracking down hard.

In the UK, the updated Digital Markets, Competition, and Consumers (DMCC) Bill - coming into effect in April 2025 - gives the CMA power to fine companies up to 10% of their global turnover for breaking the Green Claims Code.

And this isn’t just theoretical:

• Oatly paid $9.25 million to settle a greenwashing lawsuit.

• H&M and Decathlon were fined and forced to remove misleading sustainability labels.

The fallout? Financial loss and long-term brand damage.

If you sell in the EU or Ireland - heads up

If your business is trading with Ireland or other EU countries, you need to start preparing now.

New legislation around carbon emissions, waste, and circular economy requirements is already in effect. These laws require robust data-gathering systems, and enforcement is only getting tighter.

Overproduction, waste, and the fast fashion wake-up call

The pressure has long been on fast fashion - but the scrutiny is expanding across all sectors. In future, suppliers may even be charged for disposing of unsold inventory.

Overproduction and waste are now key compliance concerns, not just sustainability buzzwords.

Why technology is your best compliance ally

Whether it's automating reporting, creating digital passports, or verifying supply chain data, technology will play a pivotal role in helping businesses meet compliance demands.

It reduces human error. It adapts faster than manual systems. And, most importantly, it ensures your compliance strategy is scalable as the rules evolve.

From risk to reward: a new mindset for compliance

It’s time to move beyond “checkbox compliance.”

When done right, sustainability compliance offers a strategic advantage:

• ✅ Stronger consumer trust

• ✅ More investor confidence

• ✅ Increased operational efficiency

• ✅ Long-term brand resilience

The businesses that start investing today—in tools, systems, and mindset—will be the ones that succeed in tomorrow’s regulated sustainability environment.