Regulatory requirements: CSRD’s supply chain transparency requirements
The EU Corporate Sustainability Reporting Directive (CSRD) comes into force in January 2024, requiring more than 50,000 companies to disclose:
- Full supply chain transparency: traceability from raw materials to end-of-life recycling (Article 19).
- Carbon emissions: reporting on indirect emissions from suppliers and logistics (under the GHG Protocol).
- Dual materiality: disclosing how sustainability risks impact finances – and vice versa.
The risk of non-compliance is a fine of up to €500,000 or 0.1% of global revenue (whichever is higher) and exclusion from public tenders. Например, chemical manufacturers must now disclose the use of PFAS in firefighting foams and the sourcing of cobalt from high-risk regions such as the Democratic Republic of Congo.
Manual reporting does not meet the granularity of the CSRD: А 2023 EY survey found that 74% of companies lack digital systems to track Tier 3 supplier data.
Technology Integration: NFC DPP Automates ESG Reporting
The NFC-enabled Цифровой паспорт продукта (Дпп) closes the CSRD gap by:
A.Automating Carbon Emissions Data Collection
Each NFC-тег stores an encrypted supply chain record:
- Supplier provenance data: Carbon footprint from raw material extraction (e.g., bauxite mining).
- Logistics log: Verification of shipping emissions via the GLEC framework.
- Proof of recycling: Post-consumer recycling rates from EPR systems.
Example: Scanning an NFC-тег on a chemical drum automatically populates SAP Sustainability Footprint Management:
- Carbon emissions: 12.3 kg CO2e/kg.
- Conflict Minerals Compliance: Cobalt sourced from Glencore’s Copper Mine.
B.Enable Real-Time Auditing
- Blockchain Anchoring: Siemens’ DPP Suite stores NFC data hashes on Hyperledger Fabric, meeting CSRD audit trail requirements (Article 29).
- Dynamic Updates: Instantly modify ESG disclosures when switching to renewable energy suppliers.
Case Study: BASF leverages NFC DPP to improve ESG rating to AAA
Company: BASF SE (world’s largest chemical producer)
Challenge: CSRD compliance for 45,000+ products with fragmented supplier data.
Solution:
- Deployed NXP NTAG 424 DNA tags on 10+ million chemical containers.
- Integrated with SAP Green Token for real-time carbon emissions tracking.
Result:
- AAA MSCI ESG rating (A in 2022).
- Reduced CSRD preparation time by 40% by automating NFC data flows.
- €2.8 million in third-party audit cost savings (BASF Annual Report 2023).
(Source: BASF Annual Report 2023, p. 117)
Schedule a free CSRD compliance consultation
Our experts will help you:
Choose chemically resistant labels.
(The first 20 customers will receive free label samples.)
You may be interested also in:
For more information,please contact us.
