The world of product compliance is constantly evolving, driven by factors like changing consumer demands, increased regulatory requirements, and technological advancements. Here are the biggest changes we anticipate seeing for product compliance in 2024. Are you ready to adapt to this shifting landscape?
Increased PFAS Reporting Requirements
In 2023 we saw dramatic increases in reporting requirements for per- and polyfluoroalkyl substances (PFAS). These man-made “forever chemicals” are hazardous to human health and the environment, and their environmental persistence and bioaccumulation makes them especially concerning.
Governments and jurisdictions around the world have responded to this increased concern with additional reporting requirements for PFAS expected in 2024. In the United States, the Environmental Protection Agency (EPA) has created a PFAS Strategic Roadmap to address PFAS exposure. More recently, the EPA released a new Toxic Substances Control Act (TSCA) PFAS reporting rule.
In the European Union (EU), an expansive PFAS ban has been under consideration for most of the year. Under this proposed legislation, over 10,000 PFAS could be banned in the EU. However, this change is still being debated, as industry has pushed back.
No matter what entities and jurisdictions you must report to, you will likely be subject to new or expanding PFAS reporting requirements in 2024. The best ways to prepare now are by starting the search for alternative substances and communicating with your supply chain about reporting expectations and deadlines.
Higher Demand for Environmental Reporting
Increased environmental reporting will be one of the most significant changes sweeping across the world of product compliance in 2024. As consumers demand more transparency in the face of climate change threats, companies are face increased pressure to both disclose and reduce their environmental impact.
In the automotive industry, which is the world’s second largest producer of carbon emissions, carbon footprint reporting will be introduced in 2024. While it will be voluntary at first, eventually this reporting will become a standard requirement.
No matter where you fall in the supply chain for your industry, expect to see increased scrutiny on your environmental footprint in 2024. Gathering information and strategizing ways to reduce your environmental impact now will put you in a better position to meet these new requirements in the future.
Increased Use of AI and Automation
The use of artificial intelligence (AI) is shaking up many industries, and this will be true for product compliance as well. AI tools are rapidly transforming compliance processes, automating repetitive tasks, and enhancing things like data analysis and risk assessment.
While the shift to AI for some of these tasks may seem intimidating, you don’t want to get left behind as the technology and processes change. Start looking at how AI tools can enhance your product compliance reporting processes, freeing up your compliance professionals to focus on more strategic tasks. But also keep in mind that AI tools are relatively new, and you will need to find a balance between AI use and human oversight to make AI work efficiently for you and prevent errors.
Heightened Focus on ESG
ESG (environmental, social, and governance) is the buzzword in compliance right now as consumers and investors become more concerned about sustainability and environmental impacts for companies.
While ESG began as a measuring stick for investors, it has become increasingly important for companies as they work toward sustainability goals.
Expect to see more demands for ESG reporting and disclosures in 2024. In anticipation of the increased demands, begin gathering your ESG data and reviewing your company’s ESG practices now.
Increased Scrutiny on Product Labeling
Regulatory bodies are tightening rules regarding product labeling and marketing claims to prevent misleading information. There is also an increased focus in making sure labels accurately portray safety information about products and the chemicals within those products.
For example, beginning on January 1, 2024, Unique Formula Identifiers (UFIs) will be required for industrial use only mixtures. Previously this was optional, but now UFIs will need to be submitted for each industrial use only mixture and included on the product label.
Take time at the beginning of year to review your product labeling requirements and the current labels on your products, and make updates to your product labels as needed.
Get 2024 Product Compliance Support
The upcoming year presents an opportunity for businesses to solidify their commitment to compliance excellence and sustainability. By embracing the inevitable changes within the regulatory landscape and proactively preparing for them, your company can gain a competitive edge.
For expert guidance in navigating compliance complexities and changing regulations, contact Tetra Tech’s product compliance experts. We offer tailored solutions ranging from reporting management to compliance training courses, and we can help you keep your compliance on track for 2024 and beyond.