In today’s sustainability-driven business environment, companies are increasingly focused on minimizing their environmental impact and enhancing transparency. A key tool supporting these efforts is the Environmental Product Declaration (EPD)—a third-party verified document that communicates a product’s environmental impact throughout its life cycle. Incorporating EPDs into sustainability reports strengthens a company’s commitment to environmental responsibility while improving credibility with stakeholders, regulators, and customers.
What is an EPD?
An Environmental Product Declaration (EPD) is a standardized, third-party-verified document that provides transparent information on a product’s environmental performance across its entire life cycle. EPDs are developed according to international standards such as ISO 14025 and EN 15804, ensuring consistency and comparability across industries.
An EPD typically covers:
- Raw material extraction
- Manufacturing processes
- Energy consumption
- Water usage
- Waste generation
- End-of-life disposal
Why Include EPDs in Sustainability Reports?
Integrating EPD data into sustainability reports helps businesses:
- Enhance transparency: Verified environmental data builds trust among stakeholders, investors, and customers.
- Meet regulatory requirements: Many industries, especially construction and manufacturing, are subject to environmental regulations that require life cycle assessment data.
- Earn sustainability certifications: EPDs contribute to green building certifications like LEED, BREEAM, and Mostadam.
- Highlight environmental responsibility: EPDs provide measurable proof of a company’s efforts to reduce its carbon footprint and resource consumption.
How to Integrate EPDs into Sustainability Reports
1. Identify Relevant EPDs
Start by selecting EPDs for products or materials that significantly contribute to your company’s environmental impact. Prioritize high-volume or high-impact products that influence your sustainability goals.
2. Align with Reporting Frameworks
Ensure the EPD data aligns with globally recognized reporting frameworks, such as:
- Global Reporting Initiative (GRI)
- Carbon Disclosure Project (CDP)
- Sustainability Accounting Standards Board (SASB)
- Task Force on Climate-related Financial Disclosures (TCFD)
3. Highlight Environmental Impact Metrics
Incorporate key environmental metrics from the EPD, including:
- Global Warming Potential (GWP): Measures carbon footprint in CO₂-equivalents.
- Energy Demand: Reflects the total energy consumed during the product’s lifecycle.
- Water Consumption: Indicates water use during manufacturing and usage phases.
- Waste Generation: Shows the volume of waste produced during different life cycle stages.
4. Visualize EPD Data
Use charts, graphs, and tables to present EPD data clearly. Visuals make complex environmental performance data easier for stakeholders to understand.
5. Compare Year-over-Year Performance
Highlight improvements by comparing current EPD data with previous years’ reports. This demonstrates progress in reducing environmental impacts and supports continuous improvement efforts.
6. Connect EPD Data to Corporate Goals
Tie EPD data to your company’s broader sustainability goals. For example:
- Carbon Neutrality: Show how EPD-certified materials contribute to emissions reduction targets.
- Circular Economy Initiatives: Highlight how materials with lower environmental impacts support circular economy goals.
7. Include Case Studies or Examples
Provide real-world examples or case studies demonstrating how incorporating EPD-certified materials reduced the environmental impact of specific projects or products.
EPDs and Compliance with Sustainability Standards
Including EPDs in sustainability reports helps companies meet requirements under international sustainability standards and certifications. For example:
- LEED: Earn points under the Materials and Resources category for using EPD-certified products.
- BREEAM: Contributes to Material Health and Responsible Sourcing credits.
- ISO 14001: Supports compliance with environmental management system requirements.
The Role of EPDs in Carbon Footprint Reporting
EPDs are valuable for reporting on carbon footprints by providing data on Global Warming Potential (GWP) for each life cycle stage. This helps companies align their reporting with frameworks such as:
- The Greenhouse Gas Protocol (GHG)
- Science-Based Targets Initiative (SBTi)
Conclusion: Enhancing Sustainability Reports with EPDs
Incorporating EPDs into sustainability reports is a powerful way for companies to demonstrate transparency, comply with regulations, and improve environmental performance. By leveraging EPD data, businesses can showcase their commitment to sustainability, meet corporate responsibility goals, and gain a competitive advantage in increasingly eco-conscious markets.