Sustainability

Evaluating sustainability with the green digital twin

On January 5, 2023, the Corporate Sustainability Reporting Directive (CSRD) came into effect – but what exactly does that mean? The European Parliament adopted this regulation as a significant step within the European Green Deal framework of 2019. The ambitious goal: a carbon-neutral EU by 2050 – and thus the first carbon-neutral continent in the world.

CSRD and ESRS: challenges in reporting

The classification is based on environmental, social, and governance (ESG) criteria according to the EU taxonomy. Each of these three areas encompasses different guidelines and regulations. The CSRD specifically addresses environmental aspects and obliges companies across industries to act more sustainably. The European Sustainability Reporting Standards (ESRS) further specify how these obligations should be reported.

The challenge lies in recording and calculating the required environmental data, such as pollutant emissions, in accordance with ESRS KPIs. The question is: How can this data be collected efficiently and accurately?

Efficient data collection for sustainability

Environmental databases can support sustainability reporting, for example, the database for process-oriented basic data for environmental management instruments (ProBas) provided by the German Environment Agency (Umweltbundesamt, UBA).

The digital twin plays a crucial role as a useful helper. As a digital replica of products, machines, or components, it offers a comprehensive solution to the challenges of data collection in the context of the CSRD. By fully digitalizing the product passport, relevant data can be compiled throughout the entire product lifecycle. This enables both efficient data collection and transparent data sharing along the entire value chain.

From individual parts to the overall picture

The digital twin allows to consolidate information from environmental databases, ERP, MES, and material data management systems. Based on this data, the environmental impact of each component can be assessed with the Life Cycle Assessment (LCA) method. Taking a bicycle as an example, this includes the handlebar, fork, frame, saddle, pedals, and the two wheels with tires. The LCA metrics can be recorded for single components and the entire product. These individual parameters can be used to determine the carbon footprint across the entire value chain of the bike.

This data also forms the basis for the bike’s digital product passport. By fully digitalizing the product passport, the calculated environmental data can be easily shared, for example, with retailers or consumers.

Green digital twin for the aerospace industry

In the industrial sector, the aerospace industry is particularly affected by the CSRD. As part of the PredictECO research project, CONTACT Software is working with partners from science and industry on a green digital product twin that meets the new requirements. This includes the obligation to provide evidence in the form of a digital Lifecycle Data Sheet (LDS), which documents the materials and processes used down to the smallest detail. The goal is to create a comprehensive digital twin that contains all the necessary manufacturing information for sustainable production according to the requirements from the LDS and can provide them in a standardized digital form.

Outlook

The digital twin already proves to be a field-tested solution to meet the CSRD requirements of the CSRD. Collecting environmental data throughout the entire product lifecycle not only enables efficient reporting but also contributes to creating sustainable value chains. Take advantage of the opportunities the green digital twin offers to elevate sustainability in your company to a new level.

For more information on the green digital twin, read this article on the CONTACT Research Blog.

Paving the way for sustainability: The Digital Product Passport

Have you ever wondered what information lies behind the products that shape our daily lives? From smartphones to food packaging, the Digital Product Passport (DPP) aims to show at first glance where a product comes from, how it was manufactured, whether and how it can be repaired. Therefore, the DPP has the potential to positively influence our consumption habits and will continue to be relevant for companies in the future.

Behind the scenes: The Digital Product Passport explained

The concept of the DPP was developed as part of the European Green Deal and the EU Circular Economy Action Plan. While it may sound abstract at first, it is already becoming a central element of sustainable consumption. Similar to a “passport”, it records all significant stages in a product’s lifecycle, offering detailed insights into production, repair, and disposal.

Why is this important?

Imagine being able to trace whether a product was produced sustainably and how environmentally friendly it is at the end of its life when making a purchase—the DPP provides these insights. It is no longer just a concept: the European Union has mandated its implementation, with all industries expected to comply by 2030. The ESG reporting obligation and supply chain law already require companies with more than 500 employees to collect their data. In Germany, the passport will first affect resource-intensive industries such as electronics, electric vehicles, industrial batteries, textiles, construction, packaging, and plastics.

What does the Digital Product Passport entail?

The German Institute for Standardization (DIN) and the German Commission for Electrical, Electronic, and Information Technologies (DKE) have set up a committee for the Digital Product Passport, aiming to define the technical design requirements for the DPP. This encompasses, for example, information carriers with standardized identifiers for the product, information on environmental impacts, durability, materials, suppliers, and more. To enable the adaption to different product groups and industries with a wide variety of data, the DPP requires a corresponding modular architecture.

How the Digital Product Passport will influence consumer behavior

The DPP offers consumers a clear view of a product’s entire journey, from creation to disposal or recycling. Its contribution to transparency could impact our consumption habits significantly. For example, by providing easy insight into environmental impacts, it encourages consumers to choose long-lasting products. Various levels of detail enable tailoring information to different target groups.

The DPP as a driver of sustainable circular economy

The DPP is more than just a passport for products: it drives sustainable growth in the circular economy. The Product Passport optimizes the product lifecycle, promotes standardization and sustainable design, improves resource and recycling efficiency, and helps with environmentally friendly procurement.

The DPP in business

For companies, it is important to prepare for the introduction of the DPP at an early stage. PLM systems like CIM Database PLM and advanced IT solutions alleviate much of the work. For instance, they can calculate LCA (Life Cycle Assessment) data directly from bills of materials and work plans and use material compliance methods to ensure safe material selection. IoT systems like CONTACT Elements for IoT provide additional production data, contributing to effective energy management.

A strategic step for a sustainable future?

The Digital Product Passport is not just a source of information but provides consumers with solid information to make responsible purchasing decisions. Companies can successfully prepare for DPP standards by expanding their PLM systems and IT solutions. Therefore, the Digital Product Passport is a strategic step and a guiding necessity for a sustainable future.

You can find a more in-depth take on the Digital Product Passport right here on the CONTACT Research Blog.

How PLM paves the way for sustainable product development

In today’s sustainability-driven world, ensuring transparency and traceability across the entire product lifecycle is crucial. Product Lifecycle Management (PLM) helps to tackle these challenges by providing a solid data foundation for informed decisions.

Challenges for companies: regulations and customer demands

Companies are often faced with regulatory challenges that influence the development of strategies and products. The European Green Deal and the Corporate Sustainability Reporting Directive (CSRD) provide a corresponding framework. At the same time, customers demand solutions that support sustainable product development, and the call for a green transformation grows louder. But how can companies take this step?

Companies in the green transition

The green transition is a monumental task for the industry. Sustainable development, as defined by the 1987 Brundtland Report, becomes a guiding principle. The goal is to meet the needs of the present without compromising the needs of future generations. With sustainable design as a core element of this movement, economic and ecological dimensions are aligned. Unlike approaches like Eco-design, Sustainable Design also integrates ethical aspects, human rights, and social justice, such as social aspects in the supply chain.

PLM as a key for sustainable product design

Every product goes through various lifecycle phases where decisions regarding material selection, design, and manufacturing processes are made. PLM systems like CIM Database PLM enable the consideration of sustainability principles as early as the design phase. Reducing waste, efficient use of energy, and recycling become integral parts starting from early design processes.

Read more about how PLM contributes to sustainable product development here.

Life Cycle Assessment (LCA) and PLM: An unmatched combination

Life Cycle Assessment (LCA) is another central approach for the evaluation of environmental impacts. By quantifying and assessing environmental impacts across the entire lifecycle of a product, companies can identify environmental aspects and potential effects.

PLM as a structural guide for sustainable products

The product structure, also known as Bill of Materials (BOM), is utilized by PLM as a structured guide. It enables accurate assessment of environmental impacts across the entire product range. Material properties, work schedules, and data aggregation support the selection of sustainable materials.

Material Compliance: Mastering regulations more easily

The selection of materials must not only be environmentally friendly but also legally compliant. This is where Material Compliance comes into play. A PLM system enables the management of product structures and material data as well as a smooth implementation of material compliance through the traceability of used materials.

Digital Product Passport for the circular economy

Transparency about materials and products is crucial for a successful circular economy. The Digital Product Passport acts as a carrier of information from the PLM system and provides a foundation for GHG reporting. The Asset Administration Shell (AAS) serves as a standardized technology for information exchange.

PLM for a sustainable future

Through a holistic view of the lifecycle, impacts and risks can be detected, assessed, and ultimately avoided at an early stage. CONTACT Research is committed to more sustainable product development in order to shape a harmonious future. Let’s tackle the challenges of sustainable product development together and leave a positive impact on the world!

Read the full article on the CONTACT Research Blog here.