Transparency: More Than a Demand, A Necessity

It is rather unsurprising that customers today, more than ever, demand transparency in the products that they purchase. No matter which industry you are in, your end-user is different than decades prior.  

There are many reasons for this. One is that there is unlimited access to information (some vetted, some questionable) on the internet for any consumer to look up at a moment’s notice.  

In the 1960’s perhaps a customer who was looking for a lipstick would go to the makeup counter, look at the color options and make a decision from there. Now, a customer would likely investigate questions like, “Is this product tested on animals? Are there any harmful chemicals that I am going to put on my face? What ingredients does this have and can I pronounce them? Is this product marked with a label that signifies that it is a “B” corporation?” 

As a manufacturer of a product (or a supplier to a manufacturer), you have to answer these questions or else you risk a hit to your brand reputation. Below are a few tips for how to become more transparent and protect your business in the long term. 

1. Horizon scan for new regulatory requirements  

Product compliance is ever-changing. You should work with your suppliers to: a) know what chemicals are used in your products, b) understand which regulations apply to those chemicals by horizon scanning to identify new requirements and c) conduct hazard assessments that identify chemicals of concern present at any concentration in your product. Hazard assessments are compatible with the concept of circularity. If you discover chemicals of concern in your product, then you are most likely able to respond before any damage to human health or the environment occurs.   

2. Create a path for clear communication with your suppliers  

It is not only helpful to understand supplier processes and the chemicals used in their processes, it is also vital to come up with a compatible pathway toward product compliance in coordination with your suppliers.  

You can develop a process by which you define a common goal for how you will work together and what tangible labels (e.g. a Declare Label) will facilitate transparency.  

By using compatible systems & language terms, you can avoid confusion that could delay product release and marketability. If you have a system that houses documents such as Digital Product Passports (DPPs), you can ensure that information is open to your suppliers, while also protected so that any intellectual property concerns are addressed.  

3. Think long term: circularity is no longer optional  

A circular model takes the long view into account: where will your product components end up? How will they be taken apart, reused and repurposed? How will they be sustainably disposed of, particularly when they include toxic chemicals?  

You need to be on the same page as your suppliers when it comes to a products’ bill of materials (BOM) because knowing exactly what is in your products is the only way to ensure that product disposal or reuse is safely handled.  

4. Access the most up to date compliance data for your products 

Being proactive when it comes to regulatory requirements is key for any industry. As scientific information improves regarding chemicals, certain product chemicals used in the past may now be banned or restricted. This may result in recalls of products or blockages to releasing new products. It is important to have a true understanding of what regulations apply to your products and to ensure that your suppliers and you are on the same page to avoid delays in production.  

Thus, transparency is both internal and external. You must be transparent with your suppliers so that you can be transparent with your customers.  

Steps to transparency include:

1) Engaging with your suppliers,

2) Organizing your supply chain data clearly,

3) Understanding the value of hazard assessments,

4) “Getting” your new customer – one who uses a critical eye to protect themselves and to question everything, with instant information to back up their concerns.  

For more information about how to manage your supply chain, see our supply chain product: 3E Exchange.

To read more about creating products using safer chemicals, read our Product Transparency Playbook.