Material Compliance: Digitally document environmental and sustainability requirements

Material compliance refers to the demonstration that the materials and substances used in a product meet applicable legal and regulatory requirements—ranging from substance data management in the IMDS (International Material Data System) to the digital product passport, as well as documentation regarding recycled content, carbon footprint, and due diligence obligations in the supply chain. The digital product passport is no longer a distant prospect: the central EU registry has been operational since July 2026; the first mandatory phase of the battery passport takes effect in February 2027; and additional product groups will follow gradually under the Ecodesign Regulation (ESPR). For manufacturers and suppliers in regulated industries, this is no longer a minor issue: The Supply Chain Due Diligence Act (LkSG) already requires larger companies to comply with risk-based due diligence obligations, and with the European CSDDD, a uniform framework will take effect in 2029 that goes beyond the LkSG. This means the pressure also falls on suppliers who do not themselves fall below the thresholds—because their customers are requesting proof of compliance.