ESG Elephant Explained: Traceability

As you may already know, we’ve introduced our beloved ESG Elephant, to help simplify the complexities of ESG (Environmental, social, and Governance)   

Now, let’s turn our attention to the G (governance), where we uncover the importance of traceability. 

Traceability is a key piece in the legislation puzzle, offering clear visibility throughout the entire supply chain. 

In fact, a consumer study revealed that 71% of consumers consider traceability important when making purchasing decisions. 

What does traceability mean?   

Traceability is all about tracking a product’s journey through its entire Life cycle. 

It involves documenting and monitoring the movement of products and their components from their origin as raw materials all the way to the end consumer. 

And yes, it’s about sharing that story with stakeholders—sounds simple, right? 

We all know that it’s more complex than it seems, though. 

Why is traceability important? 

Traceability ensures transparency and accountability in sourcing and production, helping businesses demonstrate their commitment to green practices. 

With traceability, companies can quickly address supply chain issues, manage risks, and create a more resilient business from the inside out.

And consumers are catching on!

In fact, Deloitte found that 30% of shoppers have stopped buying from brands over ethical or sustainability concerns.

As consumer demand for sustainable products continues to rise, brands that prioritize transparency gain a competitive advantage—and traceability is the key to making that happen.

Finally, traceability plays an essential role in the upcoming EU legislation, especially when it comes to the Digital Product Passport (DPP) and the CSRD (Corporate Sustainability Reporting Directive).

Without traceability, you will not be able to report accurately or supply all the (most likely mandatory) details about your products in the DPP.

So, what’s the takeaway?

Traceability isn’t just nice to have, it’s a must for building trust and staying compliant.

Whether you’re meeting new regulations or winning over customers, traceability is your key to navigating future responsibilities.

Need we say more?

Let’s get tracking!