
Impacts, Risks, and Opportunities (IRO) for CSRD Reporting
In this article, we’ll break down what IROs are, how to identify and assess them, and what CSRD requires in terms of disclosure.
ESG / CSR
Industries



In today’s push for more sustainable products, earning the trust and approval of investors, customers, and stakeholders is becoming increasingly challenging. Demonstrating the environmental impact of your product is now essential - but how can your company effectively communicate this?
This is where an Environmental Product Declaration (EPD) proves invaluable. An EPD provides transparent, standardised data about a product’s environmental footprint, enabling companies to showcase their commitment to sustainability and meet growing regulatory demands.
What an Environmental Product Declaration (EPD) is
The standards and methodologies behind EPDs
Who uses and verifies them
Whether EPDs are mandatory
How companies can create an EPD


An Environmental Product Declaration (EPD) is a standardised document that provides a detailed analysis of a product's environmental impact throughout its entire life cycle. From sourcing raw materials to disposal at the end of its use, an EPD quantifies a product’s environmental footprint in a clear and transparent manner.
EPDs are closely tied to Life Cycle Assessments (LCAs), which are rigorous processes used to evaluate the environmental impact of a product across each stage of its life cycle. An EPD uses the data gathered from an LCA to present this information in a structured and standardised format, making it accessible and actionable for stakeholders.


EPDs are especially relevant for:
In addition to these elements, EPDs often highlight opportunities for reducing a product's environmental impact. For example, they may provide recommendations for users, such as recycling options or maintenance practices that could lower the product's overall carbon footprint.
An Environmental Product Declaration typically covers key aspects of a product’s environmental performance, such as:
Environmental Product Declarations (EPDs) emerged in the 1990s to address the growing demand for transparent and standardised information regarding the environmental impacts of products throughout their life cycles. This initiative aimed to provide consumers, businesses, and regulators with credible data to facilitate informed decision-making and promote sustainability.
Key Milestones in EPD Development:
1990s – ISO standards lay the foundations for EPDs. The International Organization for Standardization (ISO) introduces key standards that underpin Environmental Product Declarations.
ISO 14025 establishes Type III environmental declarations. This standard defines the principles and procedures for creating verified, standardised EPDs.
ISO 14040 and ISO 14044 formalise Life Cycle Assessments (LCAs). These standards provide the methodological framework for assessing environmental impacts across a product’s life cycle.
1998 – Launch of the International EPD System in Sweden. One of the first global platforms to register and publish EPDs in line with ISO standards.
2000s onwards – Integration into green building programmes. EPDs become recognised within certifications such as LEED and BREEAM, reinforcing their role in sustainable construction and product comparison.
Environmental declarations are categorised into three types, each serving distinct purposes:
Type I environmental labels
Voluntary, third-party programmes that award a label based on multiple criteria. They indicate overall environmental preferability within a specific product category, considering life cycle impacts.
Type II self-declared claims
Environmental claims made directly by manufacturers, importers, or distributors - without independent third-party certification. Claims must be accurate, verifiable, and not misleading.
Type III environmental declarations
Verified declarations that provide quantified environmental data based on Life Cycle Assessments (LCAs). Typically used for B2B communication, and considered the most rigorous type due to strict rules and third-party verification.
Environmental Product Declarations (EPDs) must adhere to established frameworks and standards to ensure consistency, credibility, and comparability across industries and regions. Two significant frameworks that complement global standards like ISO 14025 are EN 15804 (European standard) and TRACI 2.1 (US framework). These frameworks define how the environmental impacts of products are assessed and reported.
Both EN 15804 and TRACI 2.1 complement ISO 14025 by providing regional and sector-specific guidelines for EPD development.
Unlike Type I and II labels and claims, Environmental Product Declarations (EPDs), must be verified and accredited by recognised systems or EPD program operators to ensure credibility and compliance with international standards. Simpler forms of environmental declarations, such as Type II claims, may be self-declared but still require accuracy and verifiability.
The EPD verification process typically involves the following steps:
Accreditation ensures that EPDs are credible, standardised, and globally recognised. This is critical for:
By adhering to accredited systems, EPDs maintain their integrity and serve as reliable tools for environmental transparency.
Environmental Product Declarations (EPDs) provide a standardised way to measure and communicate a product’s environmental impact across various stages of its life cycle. EPDs typically include a range of impact indicators, which quantify different environmental effects. These indicators help stakeholders understand the full extent of a product’s sustainability profile.
| Impact indicator | What it measures | Example application |
|---|---|---|
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🌍 Global Warming Potential (GWP)
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Quantifies greenhouse gas emissions to show a product’s contribution to climate change. |
Example: CO₂e emissions from steel production used in construction.
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🛡️ Ozone Depletion Potential (ODP)
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Assesses emissions that contribute to depletion of the stratospheric ozone layer. |
Example: Impacts of refrigerant emissions from cooling systems.
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🌧️ Acidification Potential (AP)
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Measures emissions that can lead to acid rain and damage ecosystems and buildings. |
Example: SO₂ emissions from manufacturing processes.
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🌊 Eutrophication Potential (EP)
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Tracks nutrient pollution that can cause algae growth and degrade water quality. |
Example: Nitrogen runoff linked to agricultural production.
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🌫️ Photochemical Ozone Creation Potential (POCP)
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Evaluates emissions that contribute to ground-level ozone and smog. |
Example: VOC emissions from paints and coatings.
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🛢️ Abiotic Resource Depletion (fossil fuels)
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Examines depletion of finite energy resources such as oil, gas, and coal. |
Example: Fossil energy required to produce plastic packaging.
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💧 Water use
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Measures freshwater consumption across the product’s life cycle. |
Example: Water used during textile production.
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🌿 Land use
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Assesses land area impacted, including habitat disruption and land-use change. |
Example: Land-use change linked to agriculture or extraction.
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🫁 Human health impacts
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Evaluates potential impacts on human health from pollutants or hazardous substances. |
Example: Particulate matter emissions affecting local air quality.
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♻️ Waste generation
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Quantifies waste produced at different life cycle stages, including end-of-life. |
Example: Construction waste generated from building materials.
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An Environmental Product Declaration (EPD) is a powerful tool that helps companies navigate the growing demand for sustainable practices. By providing standardised and transparent data on a product’s environmental impact, an EPD can bestow the following advantages:
Greater sustainability
EPDs highlight a product’s impacts across its life cycle, helping companies identify hotspots and set practical targets to reduce emissions and waste over time.
Transparency and trust
Verified, standardised data helps build credibility with customers, investors, and partners - especially when sustainability claims need to be backed by evidence.
Supply chain efficiency
EPD insights make it easier to work with suppliers on lower-impact materials, manufacturing, and logistics - improving the footprint of the full value chain.
Better decisions
EPD results support smarter choices - from improving energy efficiency to reducing water use and selecting materials with lower environmental impacts.
Marketing advantages
EPDs provide credible, third-party-verified information to support product communications and reduce greenwashing risk in sustainability marketing.
Compliance support
Even when EPDs aren’t strictly mandatory, they can support compliance with procurement requirements, regulations, and green building certifications.
By adopting an EPD, companies can enhance their brand image, improve supply chain management, and align their operations with sustainability goals, ultimately boosting business efficiency and performance.
While Environmental Product Declarations (EPDs) are not universally required by law, certain regions and countries are increasingly integrating EPDs into regulatory frameworks. These efforts reflect a growing recognition of EPDs as essential tools for sustainability, transparency, and compliance with environmental goals.
Environmental Product Declarations (EPDs) are increasingly integrated into sustainability regulations and frameworks across the UK, the US, and the EU. While not universally mandatory, their adoption is driven by specific regional requirements, voluntary green certifications, and global sustainability goals.
EPDs are playing an increasingly critical role in driving sustainability across industries and regions. They are being actively used in various programs and regulations to foster transparency and environmental responsibility.
Examples of EPD Applications:
Green building certifications
LEED and BREEAM use EPDs to award credits for lower-impact materials - helping projects meet stricter sustainability criteria.
Supply chain optimisation
Companies use EPDs to collaborate with suppliers, reduce emissions, and improve environmental performance across the value chain.
Nordic construction standards
Finland and Sweden integrate EPDs into construction guidelines to lower the Global Warming Potential (GWP) of materials in major projects.
Global regulatory efforts
Initiatives such as the EU’s Product Environmental Footprint (PEF) and the US Inflation Reduction Act (IRA) encourage EPD use to cut embodied carbon.
These examples underscore the growing influence of EPDs in advancing sustainability goals. Companies that proactively adopt EPDs are not only aligning with regulatory requirements but are also positioning themselves as leaders in transparent and responsible business practices.
Environmental Product Declarations (EPDs) have broad applications across various industries, helping companies assess and disclose the environmental impacts of their products. Below are examples of how different sectors leverage EPDs to drive sustainability, enhance transparency, and meet regulatory requirements:
| Industry | Role of EPDs | Example | Key impact |
|---|---|---|---|
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Construction
LEED • BREEAM
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Enable architects, builders, and developers to compare materials and select lower-impact options - supporting certification requirements. |
Pyroguard: Published verified EPDs for fire-resistant glass to demonstrate performance and build trust.
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Supports compliance and strengthens credibility in sustainable building projects. |
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Manufacturing
Product transparency
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Provide credible, comparable data on product environmental performance - supporting transparency and meeting stricter expectations. |
ABB: Uses EPDs to disclose product footprints and align with global environmental requirements.
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Builds stakeholder trust and supports competitiveness in regulated markets. |
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Consumer goods
Packaging • use phase
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Offer clearer visibility on product impacts - from materials and packaging to energy use - meeting rising consumer expectations. |
IKEA: Uses EPD-style assessments to improve product sustainability and support climate-focused targets.
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Strengthens brand confidence and aligns with market and policy trends. |
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Electronics
Energy • end of life
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Quantify impacts like energy use, resource intensity, and end-of-life outcomes - informing design improvements and eco-label alignment. |
Samsung: Uses EPD/LCA data to assess device footprints and support efficiency improvements.
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Drives product innovation and improves appeal to eco-conscious buyers. |
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Automotive
Materials • components
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Assess impacts of materials and components to improve life cycle performance and support emissions-related reporting and targets. |
Volvo Cars: Uses environmental declarations to assess materials and production impacts within supply chain strategies.
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Supports transparency and progress toward lower-impact mobility solutions. |
From construction to electronics, EPDs empower companies to make informed decisions, comply with regulations, and build trust with customers and stakeholders. By integrating EPDs into their operations, businesses across all sectors can reduce their environmental impact, improve transparency, and gain a competitive edge in the sustainability-driven marketplace.
Environmental Product Declarations (EPDs) are driving sustainability initiatives across various industries. Below are two compelling examples highlighting their role in reducing emissions and improving transparency.
Environmental Product Declarations (EPDs) are vital tools for demonstrating transparency and commitment to sustainability. If your company is considering obtaining an EPD, here’s a practical guide that walks you through the process:
💡 Key tip: Define your goal early (compliance, stakeholder trust, or competitive advantage).
💡 Consider this: If you already use a carbon management platform, it can simplify data gathering for an EPD.
Define your system boundaries - which life cycle stages are included (so results are meaningful and comparable).
💡 Actionable insight: Create a visual life cycle map to spot hotspots and prioritise data collection.
💡 Pro tip: Use standard formats aligned with ISO requirements (e.g., ISO 14025 and ISO 15804).
Checklist:
💡 Maximise impact: Use your EPD in product communications to show transparent, verified performance data.
Even with the best intentions, companies can encounter obstacles while obtaining an Environmental Product Declaration (EPD). Below is a table outlining the most common challenges and actionable solutions to address them.
Collecting life cycle data across materials, production, and end of life can quickly get overwhelming.
LCAs, consultants, and third-party verification can require significant investment.
Requirements can vary by region and evolve over time, making compliance harder to track.
Smaller teams may lack the expertise, tools, or bandwidth to complete an EPD efficiently.
Supplier data can be incomplete, inconsistent, or slow to obtain - especially in multi-tier chains.
It can be hard to get buy-in if stakeholders don’t understand the value or process.
Obtaining an EPD is a comprehensive process, but it’s also an opportunity to strengthen your brand’s sustainability credentials. By following this guide, your company can create a credible, impactful EPD that aligns with global standards and resonates with stakeholders.
Most EPDs are valid for five years, after which they must be reviewed and updated. An update may also be required earlier if there are significant changes to the product, manufacturing process, energy mix, or underlying data used in the Life Cycle Assessment (LCA).
Yes – in some cases. Collective, generic, or “worst-case” EPDs can cover a family of similar products, provided they follow the relevant Product Category Rules (PCRs). However, product-specific EPDs offer greater accuracy and credibility, especially for procurement and certification purposes.
EPDs are primarily designed for business-to-business (B2B) communication, such as procurement, construction, and regulatory reporting. That said, many companies make EPDs publicly available to support transparency and sustainability claims for customers and investors.
An EPD provides a multi-impact, life-cycle-based assessment, covering a wide range of environmental indicators (not just carbon). A carbon footprint label focuses solely on greenhouse gas emissions, often without the same level of standardisation, system boundaries, or third-party verification.
